{"id":496232,"date":"2025-01-22T19:17:06","date_gmt":"2025-01-22T13:47:06","guid":{"rendered":"https:\/\/inc42.com\/?p=496232"},"modified":"2025-01-22T19:17:06","modified_gmt":"2025-01-22T13:47:06","slug":"is-fermbox-bio-indias-answer-to-a-biofuels-led-future","status":"publish","type":"post","link":"https:\/\/inc42.com\/startups\/is-fermbox-bio-indias-answer-to-a-biofuels-led-future\/","title":{"rendered":"Is Fermbox Bio India\u2019s Answer To A Biofuels-Led Future?"},"content":{"rendered":"

Just like binary numbers (0 and 1) form the foundation of computer systems and digital information, the fundamentals of the world of biotechnology are based on genetic codes \u2014 A, T, C and G.\u00a0<\/span><\/p>\n

With permutations and combinations of these codes and programming and reprogramming, scientists have been able to modify the DNA of plants, animals, microbes, and even insects to address various challenges in medical science and find new avenues in various industrial use cases.\u00a0<\/span><\/p>\n

For example, researchers at the University of Oxford are working on producing green hydrogen by bioengineering bacteria. Similarly, bioengineered bacteria are also being used to break down toxic compounds, including plastic waste, and produce biofuels as an alternative to fossil fuels. And we have barely scratched the surface here.\u00a0<\/span><\/p>\n

In these, precision fermentation often plays a key role. This specialised technology uses genetically engineering microbes with specific traits to produce targeted proteins, enzymes or bio-compounds that are further helpful in the manufacturing of biofuels, bio-materials, and specialised chemicals.<\/span><\/p>\n

In India, Bengaluru-based <\/span>Fermbox Bio<\/span><\/a> is using precision fermentation and synthetic biology to programme microorganisms and produce bio-based enzymes and technologies to produce biofuels and manufacture cosmetics and industrial dyes for textile use.<\/span><\/p><\/blockquote>\n

\"precision<\/p>\n

Competing with global giants such as Novozymes and chemical companies like DuPont and BASF, which are also working on building bio-based materials, Fermbox Bio is part of the global precision fermentation market opportunity that is <\/span>expected to grow to $57.01 Bn<\/span><\/a> by 2032.<\/span><\/p>\n

Building From India For The World<\/b><\/h2>\n

Fermbox Bio\u2019s founder and MD Subramani Ramachandrappa started his entrepreneurial journey by founding Richcore Lifesciences in 2000, which was later acquired by Laurus Labs (now known as Laurus Bio).\u00a0<\/span><\/p>\n

With Ramachandrappa at the helm, Richcore made several advancements in producing sulfur-free white sugar, treating industrial wastewater, reducing sugar loss during molasses storage, and minimising chemical use in processes like leather and grain processing.<\/span><\/p>\n

With over two decades of experience building Richcore and working with Biocon, Ramachandrappa cofounded Fermbox Bio in 2022 with Preeti Dharmagoudar, who also brings more than 20 years of experience in building businesses at companies like Abbott Nutrition and Biocon.<\/span><\/p><\/blockquote>\n

\u201cFermbox Bio was set up after I realised that biotech needs to change and become more collaborative,\u201d Ramachandrappa said.<\/span><\/p>\n

\u201cComputers have access to tech from hundreds of companies, but in biotech, we don\u2019t have access to such large datasets. Thus, we try to do everything in-house and it takes much longer that way. So, at Fermbox, we are building a global collaborative model for biotech, the first of its kind,\u201d he added.<\/span><\/p>\n

Fermbox Bio functions as a biofoundry and a large-scale manufacturing startup of synthetic bioproducts. By replacing plants, animals and harsh chemicals for various industrial applications, the startup aims to build sustainable alternatives to traditional colours and dyes, flavours and fragrances, and fuel using microorganisms.<\/span><\/p><\/blockquote>\n

Currently, the company has developed three products \u2014 EN3ZYME, which is already commercialised, and Synbio-Indigo and Bio-hexenol, which are yet to be commercially launched.<\/span><\/p>\n

\"Fermbox\"<\/p>\n

Fermbox works in an asset-light business model and has raised $2.5 Mn so far to build its tech capabilities. The startup is backed by the likes of Speciale Invest and 3one4 Capital, among others.<\/span><\/p>\n

Unison Of Rich Tech Capabilities & Strong Business Model<\/b><\/h2>\n

Fermbox Bio’s biofoundry in India is where gene-modified microbes are designed. Further, partnerships with larger companies have helped it scale production for commercial use.\u00a0<\/span><\/p>\n

The startup has already entered a partnership with Thailand-based BBGI to establish an $80 Mn precision fermentation facility in Thailand.<\/span><\/p>\n

Ramachandrappa said that synthetic bio companies fail in two main areas \u2014 developing cost-effective products and building a plant.<\/span><\/p>\n

\u201cWe have passed these two and are clear about what we want to scale. That makes us very potent as a growth-poised company. We modify the gene, put it in a host, and ferment it. Although this has been happening for 60 years, the key is to select the right product. We are not operating in the biopharma space because this segment is crowded and has hoards of the whole regulatory process. We are targeting areas that can help scale both biopharma and food,\u201d he said.<\/span><\/p><\/blockquote>\n

For instance, he said that lanolin from Vitamin D3 commonly comes from the wool of the sheep. However, with Fermbox\u2019s technology, this base<\/span> material for producing Vitamin D3 can be done without exploiting the animal, which makes it a vegan, more sustainable and scalable source of the vitamin.<\/span><\/p>\n

India has been highlighting the importance of biofuel since 2018. In the National Policy of Biofuels 2018, the country has also set a target of 20% ethanol blending in petrol and 5% biodiesel blending in diesel by 2030. In 2020, the ethanol blending <\/span>target was advanced to 2025<\/span><\/a>.\u00a0<\/span><\/p>\n

As a major step towards building biofuels, Fermbox has developed a cellulosic enzyme cocktail, EN3ZYME, designed for the efficient conversion of pre-treated biomass (agricultural waste) into fermentable sugars. These sugars are then fermented into ethanol.<\/span><\/p><\/blockquote>\n

The startup claims to be the only Indian company to be able to develop this enzyme, solving a major cost challenge for the Indian government and energy companies working on bioethanol.<\/span><\/p>\n

Fermbox Bio intends to onboard at least three customers and is targeting INR 500 Cr in revenue in the next two to three years. Its facility in Thailand, which is becoming operational soon, will have 4 Lakh litres of production capacity of EN3ZYME.<\/span><\/p>\n

\u201cOur idea is to create a use case, show big companies the margins, and then build facilities in Eastern Europe, India, Africa, and wherever there’s sugar and waterbodies around,\u201d the founder said.<\/span><\/p>\n

In terms of revenue, Fermbox Bio is aiming to clock $3 Mn in revenue in its first full year of operations, FY25. It eyes $10 Mn in revenue by FY26.<\/span><\/p>\n

The startup also provides services to companies developing other products, such as dairy, using precision fermentation.<\/span><\/p>\n

What\u2019s Next For Fermbox\u00a0\u00a0<\/b><\/h2>\n

Fermbox Bio\u2019s plan is to double down on engaging with its potential customers this year, given its facility is almost up and running.<\/span><\/p>\n

Besides, the startup is also working on developing a sustainable alternative to traditionally produced indigo dye, which can be used in textile and personal care products and as a sustainable alternative to cis-3-hexenol (aka leaf alcohol due to its strong odour of freshly cut grass), which is traditionally produced by cutting pine trees or grasses used in cosmetics, food, flavour, and fragrances.<\/span><\/p><\/blockquote>\n

In the next one year, Fermbox Bio wants to launch cis-3-hexenol commercially and onboard at least two to three customers. After building a strong R&D capability based in India, the startup also wants to strengthen its R&D capability in the US where it recently set up a subsidiary.<\/span><\/p>\n

The company is also in the process of raising $15 Mn in its Series A funding round to scale its R&D capabilities and product development.\u00a0<\/span><\/p>\n

Meanwhile, though opportunities are aplenty, scaling the business could be a challenge, especially in the presence of giants like Novozymes. On the other hand, the Indian government\u2019s policy support is also limited.<\/span><\/p>\n

Though there are intentions and discussions around building biomanufacturing and biofoundries in India, the government last year approved INR 9,197 Cr<\/a> towards the same. However, according to Ramachandrappa, this amount can only do little and the outlay must be expanded along with its allocation.<\/span><\/p>\n

\u201cThe government has just started supporting biomanufacturing, but the quantum of funding needs to be improved if we want to compete with the US or China. Besides, the policymakers have to understand that biotech is a strategic long-term investment in our efforts to prepare for any unexpected shock, such as the Covid-19 pandemic, in the near future,\u201d he added.<\/span><\/p><\/blockquote>\n

With that, it now remains to be seen if Fermbox Bio can scale its business in India and globally to help cut down on the use of harmful chemicals and animal and plant slaughter in making industrial products and processes more ecofriendly.<\/span><\/p>\n

[Edited By Shishir Parasher]<\/strong><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

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