From Agricultural Waste to Global Opportunity Reinventing Value Through Circular Design

SANDESH GAIRHE, FOUNDER, ECOKANDUK VENTURE

“What inspired me to start EcoKanduk was a simple observation,” says Sandesh Gairhe, founder of EcoKanduk Venture. “Nepal is an agricultural country, and bananas are one of the major cash crops grown across many regions.”

In Nepal’s farmlands, banana plants have long been valued for their fruit. Once harvested, however, the rest of the plant - particularly the pseudostem - has traditionally been discarded, left to rot, or treated as agricultural waste. For most farmers, it represented the end of a crop cycle. For Gairhe, however, it marked the beginning of an opportunity.

What started as a simple question—“What value can be created from this waste?”—has evolved into a growing social enterprise that is transforming agricultural residues into eco-friendly lifestyle products while creating economic opportunities for rural communities.

EcoKanduk is pioneering the use of banana fibre and other natural materials such as hemp, nettle, jute and cotton to manufacture products ranging from bags and slippers to carpets and lifestyle accessories. At a time when concerns about waste, climate change and excessive reliance on imported materials are growing, the company is positioning itself at the intersection of environmental innovation, local entrepreneurship and circular economy practices.

Gairhe, a mechanical engineer by training, recognised that discarded banana pseudostems were not only creating waste but also contributing to greenhouse gas emissions as they decomposed. At the same time, Nepal was importing significant quantities of bags and textile products each year. “I noted that Nepal was importing and consuming bags and other textile products worth millions of rupees every year,” says Gairhe. “This led me to think: What if we could transform agricultural waste into valuable products that could replace some of these imports?”

That question became the foundation of EcoKanduk Venture.

By extracting fibres from banana pseudostems and combining them with other natural fibres, the company has created a range of environmentally friendly products that seek to address both economic and ecological challenges. The model not only reduces waste but also creates value from resources that were previously overlooked.

“Through this initiative, we are not only reducing agricultural waste and environmental pollution but also creating economic opportunities for farmers and rural women while promoting sustainable products made in Nepal.”

Rather than relying solely on the appeal of sustainability, Gairhe emphasises product quality, functionality and design. Innovation remains central to EcoKanduk’s growth strategy. The company continuously explores new materials, refines production processes and develops products suited to the needs of modern consumers.

The enterprise also integrates local communities into its value chain. Farmers and rural producers contribute to the sourcing of raw materials, while local participation helps distribute economic benefits more broadly. In doing so, EcoKanduk positions itself not only as a manufacturer 
but also as a platform for inclusive development.

“One of the biggest challenges in convincing people to adopt eco-conscious alternatives has been overcoming three major barriers: cost, perceptions of durability and awareness,” says Gairhe.

Despite growing awareness of environmental issues globally, convincing consumers to adopt eco-conscious alternatives remains a significant challenge. Eco-friendly products often appear more expensive than synthetic alternatives, particularly in price-sensitive markets. Although sustainable products may offer broader environmental benefits, many consumers continue to focus primarily on immediate costs.

Another challenge involves misconceptions about quality. Products made from natural fibres are frequently assumed to be less durable than their synthetic counterparts. Overcoming these assumptions requires continuous efforts to demonstrate product performance and reliability.

“This misconception slows adoption, even when the products are designed to be durable and functional,” says Gairhe. “The third and most important challenge is mindset and awareness.”
Gairhe believes that many consumers remain unfamiliar with concepts such as the circular economy, responsible consumption and the environmental consequences of waste generation.

Without this understanding, sustainable purchasing decisions often remain a secondary consideration.

EcoKanduk’s environmental commitment extends beyond its finished products, as the company seeks to ensure sustainability throughout its entire supply chain. “We ensure environmental responsibility throughout our supply chain by designing every stage of the process around sustainability and waste reduction,” says Gairhe. “It starts at the source, where we utilise agricultural waste as our primary raw material and convert it into eco-friendly fibres and materials. This helps reduce the open burning and decomposition of agricultural residues that contribute to environmental pollution.”

Environmental considerations extend through production and distribution as well. EcoKanduk minimises the use of plastics and seeks alternatives to synthetic materials wherever feasible.

Packaging is another key area of focus. The company has adopted biodegradable and bio-based packaging materials, including bioplastics, in an effort to reduce the environmental footprint of product delivery. “Overall, we follow a zero-waste approach, where the goal is to ensure that no waste from our production process is sent to landfills,” says Gairhe. “Every byproduct is either reused, repurposed, or reintegrated into the system, supporting a circular and responsible production model.”

From EcoKanduk’s perspective, Nepali businesses face several urgent environmental issues that require immediate attention. Among the most pressing is waste management. “A large amount of industrial, agricultural, and plastic waste is still not properly managed, leading to river pollution, land degradation, and increasing pressure on urban waste systems. Businesses have a major role to play in reducing waste at the source and adopting circular practices,” says Gairhe.

The company also identifies excessive dependence on imported and non-renewable materials as a major challenge. Many industries continue to rely heavily on synthetic and plastic-based raw materials, contributing to environmental degradation and carbon emissions.

Energy inefficiency and the limited adoption of clean technologies represent another concern. Sustainable production practices remain underdeveloped across many sectors, reducing opportunities for resource optimisation and environmental improvement.

Equally important is the issue of awareness and accountability. Sustainability is still frequently viewed as an optional business consideration rather than a strategic necessity.

Like many growing enterprises, EcoKanduk has faced moments when demand exceeded its existing capacity. “There have been moments when the pressure to scale quickly was high, especially as demand for eco-friendly products increased and opportunities for larger orders emerged.”

As interest in sustainable products grew and larger orders became available, the company faced pressure to scale rapidly. The challenge was to balance growth with ethical sourcing, production quality, and environmental responsibility. According to Gairhe, it was tempting to accelerate expansion by compromising on material standards or simplifying processes, but the company ultimately chose a more measured path.

EcoKanduk navigated this challenge by prioritising long-term trust over short-term expansion. The company focused on strengthening its supply chain, improving consistency in fibre sourcing, and training local producers to maintain quality standards.

“We also made sure that every new partnership or order aligned with our core sustainability values, even if it meant turning down or delaying certain opportunities. This helped us avoid compromising our mission,” says Gairhe.

For EcoKanduk, responsible scaling is not simply about increasing production volume. It is about developing systems that can expand without compromising environmental integrity or social responsibility.

Partnerships have played a crucial role in EcoKanduk’s development, with its growth and innovation strongly supported through diverse collaborations across multiple sectors.

At the grassroots level, collaboration with farmers and rural communities forms the foundation of its supply chain through the sourcing of raw materials. These groups provide agricultural waste and natural fibres while participating directly in the value creation process, making them key stakeholders in the company’s value chain.

“We have also worked closely with local governments, which has helped us with programme facilitation, awareness-building, and supporting community-based initiatives that promote sustainability and waste management.”

Academic institutions, such as Kathmandu University, have contributed significantly through research, technical guidance, and knowledge development, helping the company improve its processes and explore innovation in natural fibre applications. Additionally, corporate partnerships have expanded EcoKanduk’s reach through sustainable procurement initiatives, product integration, and corporate gifting solutions.

“Collaborations with NGOs and INGOs have further enabled joint programmes focused on environmental awareness, waste reduction, and community empowerment,” says Gairhe. “We have also benefited from engagement with international companies and partners, which has provided opportunities for knowledge exchange, exposure to global best practices, and joint experimentation in sustainable materials and production methods.”

Programmes focused on social entrepreneurship have provided mentorship and capacity-building support, strengthening the broader ecosystem in which EcoKanduk operates.
For EcoKanduk, branding is not simply a marketing tool; it is a means of communicating purpose.

“Storytelling and branding are extremely important in encouraging people to embrace sustainable lifestyles. In many cases, people do not just buy a product; they buy the meaning and story behind it,” he explains.

The company believes consumers are increasingly seeking meaning behind the products they purchase. As a result, storytelling has become a central component of its strategy. Each product carries a narrative rooted in Nepal’s natural resources, craftsmanship, and environmental values.

“When we communicate the story behind the product, such as being made from Himalayan natural fibres, handcrafted in Nepal, and created through sustainable processes, it builds a stronger emotional connection with customers,” says Gairhe.

By highlighting the journey from agricultural waste to a finished product, EcoKanduk seeks to create a deeper emotional connection with customers. This storytelling helps consumers understand that they are not merely purchasing an item; they are supporting sustainability, local livelihoods, and environmentally responsible production.

“People also often think that eco-friendly businesses operate on a small scale or are not commercially viable.” EcoKanduk, however, demonstrates that these perceptions no longer reflect reality. Through innovation, effective supply chains, and market-driven strategies, sustainable enterprises can achieve both commercial success and social impact.

Looking ahead, EcoKanduk’s ambitions extend well beyond individual products. The company aims to scale the production of natural fibre yarn in Nepal to at least five tonnes per day using resources such as banana fibre, hemp, nettle, sisal, and cotton. “The goal is to build a strong value chain where Nepal becomes a key supplier of sustainable textile materials for the global fashion industry,” says Gairhe. The vision also includes building strong international partnerships and integrating Nepali natural fibres into global supply chains.

Through this vision, EcoKanduk aims to position Nepal not merely as a raw material exporter but as a global hub for sustainable fibre innovation. This would help reduce the environmental impact of the global fashion industry while creating large-scale economic opportunities for local communities and strengthening Nepal’s role in the green economy.

Gairhe also advocates policy measures to accelerate green entrepreneurship, including substantial subsidies for environmentally responsible enterprises. Such support, he argues, would help make sustainable products more affordable while encouraging greater innovation across the sector.

According to him, the main challenge facing eco-friendly products today is their relatively higher cost compared with synthetic alternatives. As a result, many consumers hesitate to switch, even when they are aware of the environmental benefits. “A policy change that could support green entrepreneurship would be the introduction of a strong subsidy mechanism - around 70% support - for green and sustainable enterprises,” says Gairhe.

With substantial policy-level support, green products could become more affordable and accessible. This would not only increase consumer adoption but also encourage more entrepreneurs to innovate in the sustainability space.