Anurag Jain - Founder and CEO - The Good Felt

[00:00:00] Welcome to follow.us Startups, your exclusive gateway to the world of early-sade startup

[00:00:17] founders.

[00:00:18] This is your frantro site to dive headfirst into their business pitches and stay updated

[00:00:23] with their business updates.

[00:00:30] Imagine if we could turn any form of pollution into wealth.

[00:00:33] Wouldn't that make world herbs slightly better, please?

[00:00:36] Well, that's the mission driving the good felt today.

[00:00:39] The good felt is on a quest to tackle the large volumes of textile waste in India while

[00:00:43] improving the lives of waste collectors and sautters.

[00:00:46] Hi, I am Ankitapa and you're watching Follow.us Flash Startups.

[00:00:50] Joining us is Anurag Gen, the founder and CEO of the good felt.

[00:00:54] With over a decade of expertise as an entrepreneur, supply chain strategist and impact consultant,

[00:01:00] Anurag has spearheaded the revolution in textile waste management.

[00:01:03] He's right here with me today so let's dive into his insight.

[00:01:07] Hi Anurag, welcome to follow.us Startups.

[00:01:09] Hey Ankitapa, hey, thank you for having me.

[00:01:12] It's fantastic to have you here Anurag.

[00:01:14] So let's start this with knowing a bit about your professional background first and how

[00:01:18] it all led to you building the good felt today.

[00:01:22] Yes, so I did my undergrad from NIFD Delhi and then I graduated in 2014.

[00:01:29] I worked in different export houses, different setups that works into textile and they

[00:01:34] are realized I want to get into social impact.

[00:01:36] To study further, I went to pass and school of design, to study design management, came

[00:01:40] back in 2019 and then from then onwards I'm working on building social impact ventures.

[00:01:46] So right now I'm building this venture called the good felt, which is focused on developing

[00:01:50] premium quality non-woven fabrics out of textile waste.

[00:01:54] Amazing so now coming to business tell us briefly what the good felt is all about and

[00:01:59] what is your core product or offering entails?

[00:02:02] Yes, so I'll start with a problem.

[00:02:04] So what we see in Indian households are like when we discard our clothes it's just straight

[00:02:09] up it doesn't go to like to recycle or something.

[00:02:12] We basically have this tendency of passing it on to our cousins, our siblings to our

[00:02:16] help.

[00:02:17] It becomes a porch heart, becomes like dust up and then it finally ends up in a trash can

[00:02:21] or something but by the time it reaches to the landfill the quality is so poor that no

[00:02:25] any recyclable wants it.

[00:02:27] The fiber quality is very bad, it's super faded out, it won't go into second and clothing

[00:02:31] market.

[00:02:32] So we are collecting that kind of paste, sanitizing it and then we can't make threads

[00:02:37] out of it, you can't make new woven fabrics but what we can do is we can compress it

[00:02:42] and we can make non-woven sheets which then can be used for making different kinds of

[00:02:46] applications.

[00:02:47] So the typical one is passion, life accessories so I can show you like in a reflect what

[00:02:52] those products are or you can also make different applications such as acoustic panels, insulation

[00:02:57] for automobiles.

[00:02:59] So you might have seen those belt sheets pretty much everywhere around you.

[00:03:02] We are replacing it with post consumer waste.

[00:03:05] So that's business model.

[00:03:07] So like what's the utilized process to turn such discarded clothes into these quality

[00:03:13] of felt products and more importantly, like what are these types of upcycle products

[00:03:17] that you guys create?

[00:03:19] So what we do is we collect all the textile waste.

[00:03:22] The one that is that is wearable, we are not touching it straight away going into second

[00:03:26] and clothing market.

[00:03:28] The one that's completely discarded we are then shedding it back into fibers.

[00:03:32] That fiber is through needling processes becomes felt and then it goes into more processes

[00:03:37] of calendaring, heating and all so that it gets sanitized but also it's tightly compressed.

[00:03:42] So it's as simple as firm as solid as a canvas bag and from there we start developing our

[00:03:49] products.

[00:03:50] Interesting.

[00:03:51] So like give me a low down of your target market like who are the primary customers you

[00:03:54] are catering to for now?

[00:03:55] Yeah.

[00:03:56] So it depends on the application.

[00:03:57] If we talk about like passion life accessories, we are pretty much looking to all the like

[00:04:02] all the Amazon brands, all boutique clients everyone who basically can use our felt to make

[00:04:07] their products.

[00:04:08] So the options are endless because we're not even catering to Indian but they're catering

[00:04:12] to international clients.

[00:04:15] When we talk about acoustics that's a very hot topic in India, pretty much all the public

[00:04:19] spaces needs acoustic products sound noise pollution is a thing and like think of

[00:04:27] hospitals, hotels, restaurants, theaters, auditorium schools, pretty much all the places

[00:04:33] where there are people talking office co-working spaces every place needs acoustic panels

[00:04:38] and that's where we are tapping into and that's where we can get our acoustic products in

[00:04:42] place.

[00:04:43] So these are the two applications we're entering the market with but then there are so many

[00:04:47] applications that can be utilized it can be used as insulation heat insulation.

[00:04:51] It can be used for footwear, it can be used for packaging, it can be used for built environment.

[00:04:55] So anything that where you see non-woven materials our products can basically replace that

[00:05:00] and it's a sustainable alternative because right now everything is polyfill mineral

[00:05:04] rule drop food.

[00:05:05] Great, so I'm personally aware of the story behind the word felt that it's not just a

[00:05:10] brand but a brand with a purpose and the purpose that I also try to endorse in my own small

[00:05:16] little ways.

[00:05:17] I think under arc well by telling a bit deeper into the specific problem that you are addressing

[00:05:22] our audience would be able to resonate with the work even more.

[00:05:26] So walk me through the specific problem that triggered the creation of the good felt,

[00:05:31] like what are the insights that you saw?

[00:05:34] Okay so I guess primary insight that we see is first of all textile waste is a very very

[00:05:39] big issue and there is no formalized channel that can do it.

[00:05:43] That doesn't mean we have we don't have recyclers, we have places like Pani Patan Therupur

[00:05:46] that recycles material but demand is very specific.

[00:05:50] Most of them just want pure cotton, most of them want like non-contaminated materials and

[00:05:55] the moment the cotton polyblends come or the moment the clothes come that has lots of

[00:05:59] colors.

[00:06:00] No one is recyclable wants it because it's very difficult to segregate and despite it being

[00:06:04] clean despite it being having some value it still goes into land and as I said Indian

[00:06:09] households a problem is that the way till the time we use it to the point where it's all

[00:06:13] faded and worn out it can't even go to second clothing market so we can see a huge chunk

[00:06:18] of almost 1 million tons of textile waste every year goes into landfills which can be

[00:06:23] utilized in some way.

[00:06:24] So that's the biggest problem and another issue is that the waste because waste sort of

[00:06:29] communities are not getting the respect, the kind of wages, the livelihood they deserve

[00:06:36] so we are kind of connecting that dot also where the waste because work looking textile

[00:06:39] waste they're getting proper wages since now the felt is going to to premium quality

[00:06:45] market.

[00:06:46] So we are kind of tapping into all the stakeholders supply and making sure they're getting good

[00:06:50] wages proper wages living wages they have insurance, they have healthcare, they have proper

[00:06:54] schooling systems so kind of tapping into livelihood system of all the makers, sorters

[00:06:59] collectors, artists.

[00:07:00] So you know given that sustainability is at the core of your business how do you ensure

[00:07:05] that your operations remain environmentally sustainable like if I specifically talk about

[00:07:09] the process you employed to increase the quality of the felt and turn them into premium

[00:07:15] products so like is that sustainable in terms of the resources used?

[00:07:19] Yes so how we function is everything be like heavily on partnerships.

[00:07:24] So for instance for a waste collection, for waste collection textile waste we are working

[00:07:29] with this organization called Hassoudala that is anyways doing Bota Doe waste collection

[00:07:35] for the clothing for second clothing that can go into second hand they're also doing

[00:07:39] plastic metal e-waste so we are kind of tapping into that partnership and asking them if

[00:07:45] they can collect different kind of textile waste that anyways you don't see a market

[00:07:49] off.

[00:07:50] That's what we are collecting and then we are doing shredding like shredding processing

[00:07:55] and everything in Pani Pat and from there we are making our felt sheet but everything

[00:08:00] is properly monitored and everything is like achieved with the idea of that it's truly

[00:08:04] sustainable so like in terms of the additional material to make the felt and everything we

[00:08:11] are not using any artificial glues, any virgin binders nothing everything is basically textile

[00:08:16] waste.

[00:08:17] So where would you say the good felt stands in terms of development as of today?

[00:08:23] So right now we have cracked the technology we have entered the market so it's we have

[00:08:27] achieved the zero to one model we are at one stage where everything is set now it's

[00:08:32] basically going from one to 100 so that means two things one is sales to make sure like

[00:08:37] we are achieving the bigger market we are making sales we are showing impact to sales and

[00:08:41] the second thing is how to make our process much better because I personally believe that

[00:08:45] you can't be 100% perfect you have to keep achieving for perfection and how to make sure

[00:08:51] that we are reducing carbon footprints with our actions how to achieve your tap to the

[00:08:54] bigger market how to replace virgin products with our products.

[00:08:58] So for us now that is the fight need to have but in the foundation level we have achieved

[00:09:02] that.

[00:09:03] Care to share some note where the business metrics or key performance indicators that highlight

[00:09:09] the good felt performance or impact in the market so far?

[00:09:12] Yes yes so I can give you about in terms of financials so right now this year we are targeting

[00:09:18] to sell nine tons of textile waste as felt and then creating around 250 direct jobs but

[00:09:27] then we are doing exponentially for the next five years so hopefully by year five we are

[00:09:32] expecting to make a revenue of 400,000 euros and then almost creating 12.5 million working

[00:09:39] days so when we say working days it's we're not saying jobs because also the reason is textile

[00:09:45] sector is very informal so people who are working in daily wage laborers or what we say is

[00:09:50] the hardy like that's basically what most people work with and we have to like embrace

[00:09:54] that like that's how things happen we can't change that so that's why we are moving from

[00:09:58] proper full-time jobs to like 12.5 million working days.

[00:10:02] You know so while we are on the topic of financials could you share with us the good felt

[00:10:07] current revenue model how do you what's the rising model look like?

[00:10:12] So right now so good felt is a B2B business but we also realized we also we have to enable

[00:10:18] market so it's not like we are just keeping our felt sheets and we are waiting people

[00:10:22] to buy it because it's a new product we have to also like engage the market convince

[00:10:27] and this is the material that we need to work on.

[00:10:29] So we kind of have a different model right now for the initial pilot stage where we are working

[00:10:34] with different trends on a profit sharing basis so for instance we have partnered with

[00:10:39] this company called JaggeryPacks who are utilizing our felt sheets and making products out

[00:10:44] of it and then like we are entering the market on a profit sharing basis so the other

[00:10:48] ideas that products are in the market we can see some traction we can prove that they

[00:10:52] are taken for it and along with that then we'll step back eventually and then companies

[00:10:58] like JaggeryBacks and other like fashion and design companies can keep by our felt sheets

[00:11:01] and make a revenue by themselves.

[00:11:04] So that's what fashion life itself but another thing we are doing is similarly with acoustics

[00:11:08] where we are partnering with acoustic consultants and applicators to non-support in the market

[00:11:13] as a partnership with GoodFeld and it's on profit sharing basis but eventually then we'll

[00:11:19] step down in okay now since there's a market you can sell it now it's all organic, we'll

[00:11:23] step down and we'll okay now you can just buy felt sheet from us because our business

[00:11:27] is to do innovation at the felt making process but not into developing products and selling

[00:11:33] it in the market.

[00:11:34] So now I'm curious Anurag has the GoodFeld received any backing from investors to date

[00:11:39] like could you provide an update on the current funding status?

[00:11:42] So right now the GoodFeld is an in-house venture by this company called NView so it's a

[00:11:48] venture building studio headquartered in Netherlands but then we have different programs

[00:11:51] going on and India we are focused on textile waste management program so GoodFeld comes

[00:11:56] into that cohort and in terms of like funding so right now it's dependent on grant funding

[00:12:03] so IK Foundation is one of the primary funders for this project but then we also have support

[00:12:07] from H&M Foundation and Albale's philanthropy but IK Foundation is the primary funder

[00:12:12] and it's all dependent on grants we are now moving into equity funding which hopefully

[00:12:17] will see it by third quarter of this year.

[00:12:20] Okay so as you continue to grow like how do you plan to scale your impact and reach a wider

[00:12:25] audience both locally and globally in future perhaps?

[00:12:29] So we are talking to big brands so we have already started doing business with small

[00:12:32] brands but big brands who can basically take small small orders so at least we have a name

[00:12:36] we have an image but now we are convincing big brands to place bulk orders and convincing

[00:12:40] our impact so that this is what like your branch would resonate with.

[00:12:45] So anyways that commission is anyways happening with both fashion life with also with acoustics

[00:12:52] but then we are also focusing on increasing our applications so footwear something that

[00:12:57] we're tapping into packaging insulation automobiles so down the line by like incoming

[00:13:02] months you'll see our products showing like different kind of applications and it's basically

[00:13:07] our business model is to have like not to be a provider of non-roven fabric sheets for

[00:13:12] different industries.

[00:13:13] Now I'm looking forward to those definitely so where's your office located?

[00:13:17] So it's in Bangalore but then our operations are happening in different parts of India because

[00:13:22] like that's where we can see an impact if we like kind of leverage different partnerships.

[00:13:27] I know you asked someone who's been deeply involved in the circular economy and the mission to

[00:13:33] mitigate textile waste for quite some time now so the good field is a cult like another significant

[00:13:38] venture in that domain.

[00:13:40] So tell us who all are involved in running this business sustainably like how are the various

[00:13:44] department structures within the organization?

[00:13:47] Yes so I'll talk about the partnerships when it comes to procurement then we are heavily

[00:13:52] dependent on waste procurement partners so I mentioned Hussaroo the lies one in Bangalore

[00:13:58] but then we have another one in Saahas then we also work in FashionFogurd.

[00:14:02] So one of the products that we have developed was then through FashionFogurd where we have

[00:14:06] collected H&M and StoreWaste collection and developed products out of it so that's partnership

[00:14:12] on the procurement side then we also have partnerships with based manufacturers where we are doing

[00:14:18] lots of R&D and making sure that the felt is like is sellable but also we are doing how to make

[00:14:23] the quality better and better.

[00:14:25] Then the third is like profit sharing basis partnerships like with Jaggery with acoustic

[00:14:31] panels just to make sure that it's kind of helping us to enter the market despite being a

[00:14:36] B2B businesses so I would say we are having partnerships on these three levels and then

[00:14:41] the good felt sits at the center of it kind of like quantity making sure that

[00:14:45] solid impact numbers it's making revenue and it's scalable.

[00:14:48] So how big is your team?

[00:14:50] So within the good felt we are team of five people so it's basically three full-time people

[00:14:55] and two interns so that's how we are functioning is a very small team but hopefully it will grow

[00:15:01] like are you on the lookout for any potential hires?

[00:15:05] Yes so the idea is right now like all five of us are everyone from beyond to director

[00:15:12] but that's how companies start but then the ideas we are looking for like operations manager

[00:15:17] Markam head like we want to have different departments just to make sure like we have

[00:15:21] specialized people for different tasks.

[00:15:25] It's funny when I basically do LinkedIn posts but also I'm talking to investors but then

[00:15:31] I'm also like kind of like packing products and shipping it to different buyers.

[00:15:35] It's how things happen but that's not the idealistic way of funding a business so hopefully

[00:15:39] as we get funding and all will have like hiding for specialized department.

[00:15:43] So now we are almost nearing the end of this conversation so tell us looking ahead

[00:15:48] what can we expect from the good felt in the next 12 months per day? Are there any exciting

[00:15:54] product releases, market expansion efforts or new initiatives on the horizon?

[00:15:59] So product releases are already happening so hopefully you will see lots of it

[00:16:04] you might actually say good felt's name in different unexpected places maybe like it's like

[00:16:09] maybe you'll see an office space and you'll see like the good felt acoustic products like

[00:16:13] or like on the walls maybe you go to a boutique store and you might see like our products

[00:16:17] like being there so hopefully like what I hope that what will achieve is like people see

[00:16:23] like the good felt in different avenues which they were not expecting.

[00:16:29] Awesome you know it's inspiring to see how your venture is not only focused on reducing waste

[00:16:35] but also improving livelihoods and generating more shops.

[00:16:38] So Nara, drawing from your past experiences what would you say are the top three factors that

[00:16:43] have been instrumental in building a business like the good felt?

[00:16:47] Okay, free. I would say the very first one which is like on top of

[00:16:52] like the criteria would be it's like always to keep like business and impact like side-by-side

[00:16:57] like usually like most of the businesses that I see which are like kind of say social impact they

[00:17:02] kind of make business first and then impact second and I'm like no like that's not how

[00:17:07] impact businesses happen it has to be like impact and business has to have to be side-by-side

[00:17:12] and there shouldn't be any compromise on both the aspects. So that's first then second is

[00:17:19] when you talk about stakeholders you have to kind of respect them be inclusive,

[00:17:24] appreciate the diversity and get them on board instead of like kind of instead of delegation

[00:17:30] expecting us to do the job for us. So to understand the problem if you talk about livelihood

[00:17:35] it's a very very heavy word and when you say like our venture is building livelihood you also have

[00:17:40] responsible for so many things as to make sure that these people are empowered but also have like

[00:17:45] proper the living conditions that we all are like taking it as a privilege. So that also

[00:17:51] is the second thing that needs to be covered and third is we have to be mindful of our waste

[00:17:57] like it's I won't say that it's only on the people it's also the corporate of big companies

[00:18:03] also responsible for the waste but a charity begins at home action begins at home. So when you

[00:18:10] are throwing your clothes and everything like just a basic step off wash it and then throw it away

[00:18:14] because just the way you don't want to touch anyone's clothes that's dirty. The same respect has

[00:18:19] to be given with based workers so these kind of decent actions can basically help us to like

[00:18:24] for a business like us but also to give to support those waste workers and waste because.

[00:18:29] Absolutely thank you so much for sharing that. Sonara given our intention to reach a broader audience

[00:18:34] with this video are there any specific areas where you are seeking support such as potential

[00:18:40] partnerships investments industrial collaborations or connections with experts like this is your

[00:18:45] opportunity to voice any needs. Oh my god I need everything. So right now like since I just said

[00:18:53] we have entered the market so I would like appreciate if the viewers can go to the Jaggi website

[00:18:59] and check out our products and reach out to me like just to see if they can see any partnership

[00:19:04] investment opportunities or just like they want to talk to me and like brainstorm with me.

[00:19:09] Like I'm happy with that and yeah do check out our products like on Jaggi website and like this

[00:19:14] followers on our social media linked in to get like regular updates and yeah that's that's that's all

[00:19:20] so before we jump on to a concluding round which is a rapid fire round would you like to show us

[00:19:26] the products that I'm assuming you have with you. So I'll start with this store back

[00:19:34] I don't know if it's oh wow yeah I can see that yeah. So it's made out of all textile waste and this

[00:19:39] is basically what the elementary Jaggi put which is the discarded cars seat belts. Oh okay.

[00:19:46] So that's like one of the products that we have built and the white is all textile waste which

[00:19:51] is segregated and limited to fill sheets. Oh amazing. Then we have something like this which is

[00:19:58] like a laptop back. So again this is H&M in store waste collection waste which again got collected

[00:20:02] and shredded into field. That's what we are made so it's pretty much at part with what you see on

[00:20:08] Amazon or like any any any fashion brands. It's just that this is all like 100% circular and it's

[00:20:13] all made out of the waste that people throw away from their houses. Oh my god. I'm stunned well

[00:20:19] and I request the audience to do check out their products and now Anurag lets to a quick rapid fire

[00:20:25] round are you ready? Yes. Okay question number one is there a book that you would like to recommend

[00:20:32] that has greatly influenced your career. Okay I'm just reading the power law. Okay question number two

[00:20:41] which is your go-to productivity tool or app that you find most helpful in your daily work.

[00:20:46] I mean I just like take a break like learn an instrument and I feel like once you're out of it

[00:20:49] you are more productive. Like don't just don't work work work like it's like get a hobby and

[00:20:53] like like be committed to it. Like that's basically what makes you product. That's the spot answer.

[00:20:59] Okay question number three can you share a fun fact about you that most people don't know yet?

[00:21:04] I play ukulele. Wow okay question number four so there's a saying that don't tell me who you are

[00:21:11] just tell me what brands you use. So describe yourself using just the names of three brands you use.

[00:21:18] Nowadays I'm kind of like being like crazy about shoes so I basically got like some new balance shoes

[00:21:24] so that's that's that's one I would say. Like I have started doing like lots of kutas but

[00:21:28] like from random brands so like I can't think of like anything but I'm just feeling like I'm going

[00:21:32] I'm getting older I should be like more kutas like be like more like a more seems to tap.

[00:21:37] I guess third is ikea because since we are like supported by ikea foundation I just feel like

[00:21:42] I'm like you are obligated to stay there never. I think since I'm kind of like supporting

[00:21:47] our funders by like giving them some sense from. Okay question number four what is your favorite

[00:21:54] kutasian on mantra that you really like or you live by? What do you seek is seeking you by roomy?

[00:22:01] Okay last but not the least what is your one piece of advice for the young body and he's watching this.

[00:22:05] I would say question everything. I feel like the young audience if like for me they are

[00:22:09] gencies and I feel they're already very smart and they're like actually like kind of other people

[00:22:14] who will have to change so I would say like stay like that like cause questions challenge your elders

[00:22:18] because that's like that's how like the world will become a better place.

[00:22:23] And then last question how are you feeling? I hope this was worthy of your time thank you so much

[00:22:29] for doing this. Yes yes of course it's a great time. And before I let you go I would love for you to

[00:22:34] share a wish you have for the good felt. Oh my good felt will become the first social impact

[00:22:39] venture to get when you're confident. So well yes, good felt uplifting lives and sustaining a planet

[00:22:43] wishing you continued success on this remarkable journey. And thank you so much for joining us.

[00:22:48] Thank you. If you would like to stay updated with the latest developments and business insights

[00:22:53] at the good felt you can follow their channel on follow dot us slash startups.

[00:22:57] Thank you for tuning in. If you want to listen to more such interviews with innovative new founders

[00:23:08] don't forget to visit www.follow.us slash startups and if you want to showcase your startup feel

[00:23:14] free to drop me a note at www.uncita.hava at the rate follow dot us we'd love to hear your story.