Innovation

Eco Cell uses cost effective compressed interlocking technology in their eco-friendly brick production process. Each brick consists of sand, soil, and ten percent cement. They also use stone dust in the mixture which otherwise would have been dumped into rivers causing water pollution. The mixture is compressed into a machine which results in the formation of compacted bricks with high density. Unlike the traditional brick making process in Nepal, there is no burning of firewood or coal, so there is no emission of greenhouse gases during production.

Something that makes Eco Cell so unique is that the bricks are interlocking ones that bind the horizontal and vertical reinforcement of the masonry with the concrete, thus offering the walls more resistant to shear. The technology makes the buildings strong, earthquake resistant, and reduces the cost of construction by 30 percent. This is possible because the compressed interlocking brick technology reduces the use of steel bars and cement, eliminates plastering, and helps to reduce labor costs substantially.

Inspiration

The devastating earthquake in April 2015 that took the lives of 9,000 people, injured nearly 22,000 more, and destroyed 510,762 residential houses and other infrastructure has made reconstruction a major challenge to a poor country like Nepal.

When four MBA students visited different villages affected by the earthquake in order to help distribute relief materials, they were devastated seeing the scale of destruction. Nepali people are used to constructing houses using traditional earth bricks whose production process is notorious for polluting air. The massive destruction of residential houses has substantially increased the demand for brick production in Nepal. This will eventually add more pollutants to the air. There is a fear that the reconstruction work might harm the environment.

The students observed a solution to the problem and found an opportunity in a crisis situation. They needed to replace air polluting production processes by a cleaner one that was economical as well. This led to the establishment of Eco Cell Industries. Paradoxically, it was the devastation of the earthquake and a dream for “green reconstruction” that triggered the minds of the young entrepreneurs to venture into a new business.

Overall impact

The business focuses on production of eco-friendly bricks that replace the bricks produced by air polluting technology. By replacing traditional earth bricks, the business fulfills UN Sustainable Goal (SDG) 13: climate action. Similarly this business thrives to fulfill SDG 11: Sustainable cities and communities through its assistance in sustainable reconstruction.

Business benefit

The team started their business with an investment of NRs2 million ($20,000 approximately). This is now being expanded to NRs5 million ($50,000). Since this is a new technology for reconstruction in Nepal, at the start, people were a bit skeptical with the use of new bricks. During the first year of operation, the business suffered losses. But in the second year, they were able to run at break-even point. Currently, the company is running at profit.

The market price of the brick is Rs50 ($0.48) per piece. The production cost is around Rs30 ($0.29) per piece. This gives a profit margin of Rs20 ($0.19) per piece of brick produced. The company has successfully completed around 64 projects with satisfied clients and it has sold around 300,000 bricks. The company provides employment to 8 employees (6 laborers and 2 office staff). However, if the employment in six franchises is to be considered, it has provided employment to more than 100 people.

Social and environmental benefit

The brick kilns operating in Nepal are known to be a leading cause of air pollution, particularly inside the Kathmandu Valley. For ages, the operators have been burning fire wood and coal. This has resulted in substantial indiscriminate deforestation. However, the company seeks to eliminate the burning of fire wood and coal in the production of bricks. They produce bricks by using high compression machines instead of burning fire wood therefore leaving zero carbon foot print which helps to keep the environment clean and helps to protect the ozone layer. They reduce greenhouse gas emission by 86 percent. If the brick production processes that are currently in operation in Nepal can be replaced by this technology, it can contribute a lot in controlling air pollution. Currently, there are 1100 brick kilns operating in Nepal and, of them, 200 alone are in Kathmandu Valley. Brick kilns are responsible for 75 percent of Sulphur dioxides emission in Kathmandu Valley and contribute, at least, 40 percent of air pollution in the Valley making air quality at least 5 times worse than the WHO guideline.

Eco Cell Industries is contributing to the reconstruction works and has provided shelter to hundreds of poor and destitute earthquake victims in a cost effective manner.

Similarly, to develop entrepreneurship among young people, Eco-cell Industries has started franchising their product. They provide machinery, training and consulting facility, and business development training to local entrepreneurs at low costs. So far they have built more than 6 local entrepreneurs in earthquake affected areas. The company expects to have 20 new franchises this year. Recently, Eco Cell Industries made it to the top 9 of Google Business Group Stories Challenge 2017. This has been a source of inspiration to other entrepreneurs – in Nepal as well as entrepreneurs around the world.

Interview

Sacheet Pandit, Director