What if the key to sustainable building lies in the fields of hemp growing across the countryside? Join us as we discover the groundbreaking work of Abhishek Kumar Devjibhai, the mastermind behind Ekotekt, a Finnish company reshaping the construction landscape with eco-friendly materials. Abhishek shares his remarkable journey from his architectural studies in India and Stockholm to working alongside visionaries like BV Doshi, leading to a passion for fusing sustainability with innovation. In this episode, we explore the impressive potential of hempcrete—a mix of hemp fiber and lime—to transform construction practices, offering benefits from enhanced fire resistance to economic boosts for rural communities.
Listen in as we unravel the strategic integration of 3D printing technology and prefab construction, revealing how these methods can significantly reduce material usage and labor costs. Abhishek sheds light on the intricate hurdles in penetrating the U.S. market, from rigorous testing requirements to the need for certifications, and how these challenges shape the pathway for sustainable construction. We also discuss the adaptability of these technologies to fit within diverse aesthetic preferences, ensuring that homes built with alternative materials can seamlessly blend into both traditional and modern landscapes.
Abhishek’s pioneering spirit and Ekotekt‘s success story testify to what passion and perseverance can achieve despite skepticism. We witness the determination required to navigate the complexities of launching a new venture and the profound impact of hemp-based construction on the industry. This episode not only celebrates Abhishek’s achievements but also inspires continued exploration of sustainability in architecture, with promising developments on the horizon and growing interest from significant construction players.
Speaker 1:
Hi everybody, this is Alex Romanovich and welcome to Global Edge Talk. Today is January 23rd and one of our guests today is Abhishek Kumar Devjibhai. Hello, abhishek, hi, alex, thank you. Thank you for inviting me. Let me introduce you properly.
Speaker 1:
Abhishek is the founder of the company called Ecotecht, which is based in Finland, and the company is in the prefab construction business design, construction and it’s a very unique concept. When I saw the concept, I was actually on the panel judging Abhishek’s performance in his presentation to the investor community and to the media and I voted for him. I voted for the company because I thought it was a very unique, interesting concept and he had his stuff together, which was very impressive. So he’s going to tell us a little bit about himself as an entrepreneur and also a little bit about the company called Ecotech and what this company does. But the company is in the prefab business using a number of natural resources. We’ll talk more about that and we’ll talk more about Abhishek’s journey.
Speaker 1:
Abhishek, let me start with the first question, and the first question is how did you come up with the concept? Tell us first of all about yourself, but briefly about your company, and how did you even come up with this concept, not only to do prefab, but to do prefab using a number of different resources nature-based resources and what, what you’ve done and what you’ve manufactured, tell us yes, hi, yeah, hi.
Speaker 2:
I’m an architect by profession. I have a car. I studied in india and I was very lucky to basically work with one of the best architects globally, especially with the BV Doshi, who is a Biscuit Prize winner and Biscuit Prizes like Oscars for architects Also in North India Vindhya Pramdeewal, and so on. So that exposure at early days of education in architecture always encouraged me to do some creative work, and especially towards the sustainability. For example, though she was talking about sustainability long time back in 1960. So this is why I think that it starts from there.
Speaker 2:
Also, my education here in Stockholm Royal Institute of Technology, where I got exposure about the robotics and basically how we could use the machines and the robots to look for construction. So what we do here is we make these 3D printers which basically manufacture these one elements which are sustaining. Actually, it’s power, it’s not just reducing the CO2 emission, but it’s capturing the CO2 emission from the ground, and for that, over the years, I was working in London, I spent five, six years in Denmark, australia, and now I also work with India for the Indian government in affordable housing projects, and there I see that, yes, this is what, this gap between what’s happening in the construction. Now there’s a huge opportunity to have to get the help of the robots, and especially these 3D printers, in manufacturing. So this is how we came up with this idea and we started this company in Helsinki.
Speaker 1:
Now, my understanding is that you are manufacturing with 3D printers and you use hemp as the product to manufacture.
Speaker 2:
Yes, so we use hemp fibers for making the walls. Also, we use concrete, but we minimize the usage of concrete and we use more and more hemp. There are many benefits of this, because it’s healthier. It also controls the indoor air quality. It’s excellent fire resistance, mold resistance, yeah, and it’s also cheaper, making these panels lighter, so it’s easy to transport, handle them. And also the buildings are lighter, so we need less foundation. So there are like so many benefits of this material. And now we are also exploring for other bio-based material rice husks, fibers and so on. So basically, the idea is to, instead of mining, so we use a lot of sand and cement and we have, like you know, very limited sand. So I give you one example Europe is getting sand from Africa, for example. So how we could replace these with the natural resources? And also it’s good for the farmers, it’s a new revenue stream for them and it’s also good for the economy in the rural areas.
Speaker 1:
So is HAM easily accessible, readily accessible in terms of the actual raw material in comparison, let’s say, to sand or wood or anything else.
Speaker 2:
Yeah, it is available, the sand and wood. They are expensive. What do you? And because of this last few years I would say five, six years the changing the regulation? It is available. It’s a waste product because we make a lot of end oil and other stuff. So what we use is the leftover oil from the production part. So it is available globally I would say at least in Europe, us and Canada, that we have done the studies and it’s in abundance.
Speaker 1:
Interesting, interesting. Tell me more about why we met on the panel where you were doing the presentation, specifically targeting United States market. Why US market? Why do you feel that US could be an interesting recipient of this technology number one and number two? Why do you think it could be lucrative for your business?
Speaker 2:
US is one of the biggest markets, right? One advantage with our panel is that we could go really high. It’s usable in the high-rise buildings where we have skyscrapers and so on, and the density in the cities of USA is really high. We did some initial market research, and also in the United States, the people like the amber or bio-based material. So, especially, we did the studies that we did let’s say, the 25% of the people who are more educated. Their income level is higher. They always prefer to pay a little bit more, but prefer the sustainable products. It’s a huge market, though. This is why we think that, though this is why I feel everything that it’s really lucrative, and we applied for the US patent. We got the patent in Finland. Our US and Canada patents are pending and hopefully soon.
Speaker 1:
So it sounds like your solution is actually the entire ecosystem around you. It’s great for the farmers because they can grow more hemp, as an example. It’s an excellent byproduct, it’s environmentally friendly, number one. Number two you’re minimizing the use of construction materials that we’re all used to, which is wood and concrete, and that requires sand and so forth. And also, what does that mean for the cost of the product, the final product? Will the houses built, or prefab homes or prefab facilities, be cheaper for the consumers or businesses, or is it going to be even more expensive?
Speaker 2:
So it will be cheaper. The reason, I tell you, is that the sand and the raw materials are getting more and more expensive, and also the steel. So we are also partially replacing the steel and concrete. So if you see the last two decades of the prices, it has gone really high and our estimation is that it will double in 2030 easily. And when we do the comparison, of course, it is clearly much cheaper. As of now, people still figure out the logistics and the supply chain system. I would say that the product is still the same price, but it has a huge potential for the affordable housing usage.
Speaker 2:
And then, yeah, and there are also many one number of, for example, advantage compared to wood. Now also one number of, for example, advantages compared to wood. Wood takes 25 to 40 years to grow and it requires a lot of land and we need forest. We don’t want to cut down the forest. So this hemp, it takes only four to six months to grow. It takes very little water. Again, it treats and reaps the soil with the nitrogen inside, so it’s good for the farmer. So, basically, what the farmers do is between the crops they grow, the hay they use and repossess the hay. So this is also compared to what we have, a huge advantage. And wood yeah, in Finland the wood is available, but let’s say Southern Europe or in many parts of the world, the wood is super expensive and also it has challenges. When you have to have high-rise buildings or for mold resistance or fire resistance. Maintenance cost is huge over the period of time compared to concrete. Yeah, it’s definitely hits the advantage we have of the cost.
Speaker 1:
I was just going to ask you, based on what’s going on in Los Angeles and the fires that we have in Southern California, how fire resistant is this material? Because, as you can imagine, you could see how those homes in California are going up in flames and most of the homes in the United States are not made from concrete. We’re talking about residential homes. They’re made from two by fours, they’re made from wood, they’re made from you know, there’s some pref about residential homes. They’re made from two-by-fours, they’re made from wood. There’s some prefab technology, but they’re made from plastic. They’re made from plastic or artificially manufactured isolation material and insulation material and so forth and so on. So how will hemp be? Because it’s a natural product, how will that be more fire resistant, for example, or flood resistant or any other disaster resistant?
Speaker 2:
Yeah, that’s a very good point. Again, this hemp fiber, we use it with the lime and we call it hemp kick. Basically it’s a concrete, but the concrete is supported by this hemp fiber for the density resistance and so on. So it’s covered with the lime and the concrete is supported by this hemp fiber for the tensile resistance and so on. So it’s covered with the lime and the concrete and I would say, for two hours it’s around the same fire resistance as the normal concrete and the wood is nowhere near to when it comes to numbers of fire resistance. This is also one of the main advantages that we have seen in history. We have seen cities burning down in Europe or across the world and in decades. We can’t stop it. But, yes, if we design our building and we choose the material wisely, we could minimize the impact of spreading the fire and so on. So, yeah, I just wish that if California they have used our panels, the damage could have been, yeah, less of a minimum, I would say.
Speaker 1:
Oh, it sounds like you’re going to have an interesting opportunity to actually rebuild all of these homes, right, yes, and that could be a great business opportunity for you. Tell me, as an entrepreneur, when you started this company, working with others you know your partners and so forth. Tell us a little bit about your journey. What have you learned for the past three, four, five years of doing this, of growing this business, of getting new customers and actually this entire process of growth? What have you learned and what advice can you give to others of what to do and what not to do?
Speaker 2:
Oh well, I have learned a lot. I would say, depending on what company it is, it’s a very good experience, and I would say that it’s just a passion, or you really believe in it, something that keeps on going, because there will be ups and downs, I would say, and so you need to just for the economic benefit. You must be passionate and ask yourself. So this is what I give advice to all the founders that if you’re not sure or if you have some doubt, it’s better to think about it again, because when days are not great or good and it’s eventually, then at that time that’s where the test will start that how you or how one as a founder is taking the decisions during the heart, because when we have the money now and we have the investment, of course people wants to work with you and want to work with this good idea and have big prices and so on. But the question is that, okay, there will be some days that what we have expected may not happen, because we are doing something very new, never happened before, and there are so many uncertainties around us. We are also, I would say, navigating, or it’s a venture, right. So you go on the ship, you are exploring a new world and with your own knowledge and everything, you want to get the success. But again, you will never know, unless and until you reach there right. So this is why I would say that also the team is super important. Now I realize it. Of course, all the venture capitalists they say that, oh, not the team. So they look at the team initially, but I would say that that is the key. So just I would say that involves the founders or yourself in this venture If you really are passionate about it.
Speaker 2:
Even if you are passionate about it, you may fail, but in the end you enjoy your journey. I am passionate about it, so I’m not losing everything. I’m enjoying this journey here. It’s not a burden or a problem for me. That’s what I would like to suggest that if you are really passionate, then you should do it, because this is what the world needs. It’s a wonderful journey and you will meet people like yourself, for example, in sustainability. We are in this. I made a lot of connections. We have a good community, so there’s also the surrounding, or the people you meet are quite interesting, so it’s just fun.
Speaker 1:
It has to be fun, right? Otherwise why do it? Yeah, exactly. So let’s talk about sustainability and carbon footprint and environment and eco-friendliness and so forth. So, as you probably noticed, we now have a new president and his administration is a little bit different from the previous one. In terms of their belief in the benefits of limited carbon footprint or carbon emissions, their approach to sustainability is, in certain ways, is a little bit less dedicated, to put it mildly. And we just got he just got America out of the Paris environmental agreement that controls a certain amount of waste that’s being shared with the atmosphere, and so forth. Now, what would you say to the non-believers? What would you say to people who are skeptical about sustainability? What would you say to people who are like, okay, this carbon footprint stuff, I don’t even know where to look to justify it, or I don’t even know how to measure it, for that matter, what would you?
Speaker 2:
say to those folks. So it’s a very good point. And whenever I meet someone, I just say that it’s not just about sustainability, but think about that prepares your businesses for the future. So we know that the resources are very limited. The prices will go up. After all, the raw materials, things are changing every day. Right Now.
Speaker 2:
If you are prepared in high trials, that can be very useful for our search. So, for example, I mean, let’s say, this fire in California or there are floods, and so it’s not just about sustainability, but also you have to look in terms of the profitability, or I would say, the economic benefit, and there are always for our product. Almost we have this strategy to have an assessment. So what if we have a government who is not supporting the sustainable product? Then we decided that, okay, in the end it’s the customers that are going to choose our product. Right, they make the decision and we have to find the customers, and there are many here globally who are willing to use the sustainable product and pay for it. Pay for it, they feel connected here.
Speaker 2:
So that’s the key here. So, and that’s the key, in the end it will come down. So even yes, the government supports the Indian market so that we get the push. But as an entrepreneur, I would say that we have to be ready for uncertain situations and make sure that the core is that the questioner and the benefits, the value proposition, the business stays as it is. I think we will have the governor, who are addressing the sustainability issue. They are securing their future. This is how I see it.
Speaker 1:
Now Americans, they love numbers and we love numbers. Obviously. Have you done the cost-benefit analysis, with all of the factors counting in, of what it would be like to build a home the more traditional way versus the prefab the home, or fabricate the manufacture the home using the prefab technologies from Ecotech and so forth? And when you weigh those two factors, when you compare those two technologies, is it a better, a more profitable way to do it using your technology or not?
Speaker 2:
Yes, we deduce the usage of up to 60 to 70% of the steel and concrete, which is the major part in these houses, and this cost is, of course, we have to buy the hemp, but then we are also buying the styrofoam or the plastic patient solution. So when we do the math, I would say that we are affordable compared to regular construction, Also because it’s a robotics and CAD game, so all the designs can be sent to our twin gate and the quality. We are reducing the labor costs here. So if we combine everything, yes, we are in a much better position. I would say, and this is why we are one of the biggest infrastructure and the cost is the major factor when we want to build something. Yeah, it’s one of the main pieces of decision-making.
Speaker 1:
Right, so it sounds like it’s a no-brainer.
Speaker 2:
So what obstacles, what challenges do you see ahead of yourself in terms of growing the business, in terms of, let’s say, getting into the US market and growing inside of the US market, of course, because it takes some time more time than like other startups, I would say because we have to have all the testings and certifications high resistance test, electric resistance test, water test and so on, test and now another, what we are the construction itself takes.
Speaker 2:
So sometimes first it goes to the architects, then they make the decisions for the customers. They make the decision that they want to be this, use, this panel, and then there’s a design phase which led towards three months. Then there’s a permit. So we are waiting for a permit for last six months in Denmark and then then the foundation is here, we get the permit, the foundation is agreed and then we put the panel. So it takes, like I would say that, from one year to two years, even after the decision is being made. And this is where. But the good thing is that the ticket sizes are not. We have orders, so minimum order is $25,000 or around $30,000 and can easily go to millions.
Speaker 1:
This is for one single home correct.
Speaker 2:
$25,000 is just one simple garage Right. We are building it in Portugal now to test out and so on. And then we are also having several talks going on with one of the largest construction companies. These large projects it takes five years to complete, but the pipeline is good now. There’s a lot of interest.
Speaker 1:
But yeah, it takes some time. Well, americans are also used to a particular, more traditional style homes, if you will, or maybe even more modern homes, if you will, or maybe even more modern homes, if you will. Is this an issue? Because we’re going to be. You know, you will be using different materials, different manufacturing process. You go to a large residential construction company or even commercial company. Is this going to be an issue from an architectural design standpoint, aesthetic standpoint, manufacturing standpoint and standpoint manufacturing standpoint, and so forth?
Speaker 2:
Yes, the manufacturing standpoint, yes, there is a change, and this is why we have these three-pass companies or the contractors. We have the partners. So once we get the order from the architects, the contractors are used to provide the services, or customized, because each and every home is a customized home. Every home is different, but when you look at it from outside, I would say that you won’t notice it, that is it from concrete or wood, because any gliding can be done on top of it. If someone wants to have a finishing which is like plaster finish or tiles or wood, we can easily do that. So, aesthetically, I don’t think you have any issues. It’s just that there are some changes required for the architects. But this is how, in every project, when we do theade, we try to and especially these architects are they always work with the new technologies that are very well known or eminent architects, and so we are working with them and they are quite used to it, who always work with something new.
Speaker 1:
Fascinating, Fascinating. What advice would you give yourself 10 years ago? I always ask this question Uh, if you have to maybe do it all over again, or if you had to do it differently, what have you? Imagine that you were meeting Abhishek of 10 years ago in the street and he’s inviting you to have a cup of coffee, trying to pick your brain. What advice would you give him?
Speaker 2:
I completely missed out on the resources which I already had. So, for example, you know now my partner, you know, is Mikael Hoylund. We’ve worked in India since 2009. It’s been quite a long time. Also, we built a lot of connections in my architectural practices in different countries. I should have not utilized them. I should have worked with them from early on because I know them. I know they not familiar in CEC. Instead of that, just started all over again and fresh, I would say that I should have tried to utilize my own connections in a much better way. That’s what I, and that that would have accelerated the decision making, and but I gave his 30. So, in short, I would say the team is crucial here.
Speaker 2:
So relationship building is going to be extremely important for anybody for that matter, right, yes, yes, and if you, luckily I have with all the offices or where I have gone previously, we have very good relationship. And so, for example, one of my in the office where I have gone previously, we have a very good relationship. And so, for example, one of my in the office where I work, they said that we saw you on the next day there. Why didn’t you tell us anything? Why didn’t you say it was so interesting, we could have done something for you? And I said that’s true, but for some reason, even I don’t know why, I forgot to tell them that what I did.
Speaker 2:
And so this is where using your own connection, which I have built over the years, would have had a whole level. So, in the university where I studied, in, uh, royal institute of technology, they are quite interesting, they are interested to do research with us. So things like you know, I would say that work with someone who, which you have already worked or you have a relationship, and that will be much easier what other advice would you give young Abhishek or, for that matter, any global entrepreneur out there that is listening to this podcast?
Speaker 2:
So I think if you feel that you have some ideas and you are not sure to you know try it or not, I would say you should try it. I would encourage you because it’s just so much fun and you will know, because otherwise you’re going to regret that oh, I shouldn’t have started this idea or I shouldn’t have worked on it. If you feel that, please don’t wait, start now.
Speaker 1:
That’s a great advice, by the way. That’s a great thing. Don’t wait, start now. That’s a great advice, by the way. That’s a great thing. Don’t delay, start now. And you know, if you fail, you’re going to have to deal with this, obviously. But what do we say? The sooner you fail, the sooner you succeed, correct?
Speaker 2:
Yes, and it is so surprising that there is so much support. I can’t imagine how many people have supported. I don’t know how many people have supported. I don’t know. I just met them. So you get this lot of support and people respect you more. I would say the world is a much better place than what we thought or what I thought initially. So you will be surprised at how the reaction from you know it’s wonderful.
Speaker 1:
It’s wonderful that you feel that the world is a better place because of that, because of the support structure, because, you know, sometimes a lot of entrepreneurs get discouraged when they talk to cold-blooded investors or when they’re surrounded by competition or they have to deal with even some of the more difficult issues like war or issues, economic issues or trade issues or travel issues or what have you? Resilience is what you also talk about. Right, you have to be resilient.
Speaker 2:
Yes. So remember one thing that nobody knows how many times you have failed. You just have to get success one time and that’s remembered. Right, I pitched I don’t know hundreds of events, but if I won the award in one event, that’s what people are remembering. Or if you make a sales, one sale or investment deal I made hundreds of them, we made some few investment deal and then when we look into it, we just see, okay, we got it, so people will you just see okay, we got it, so people will you need to. Maybe you may fail nine times, but even if you win one time, that’s, I would say, success, that’s the step forward.
Speaker 1:
How do you deal, by the way? How do you deal with failure? How do you deal with discouragement? How do you deal with rejection? What is your secret sauce about containing your emotions, or containing your despair, if you will, when you get tons of no’s, lots of no’s?
Speaker 2:
So I would say in that way that no one or other way, no one cares what you do right and people are busy, nobody wants to. So if I send my pitch deck or if I speak with the investors, I just feel that, okay, at least they liked my idea, they liked it, they had the time to go through it, and then they don’t. If they are not, if it’s their money, they are going to make the decisions right. My job is, or our job is, to go and explain what you do. You will not even any product, even Apple or, let’s say, google or anyone. They will never get 100% sales right. Anyway. You have to reach out to 100% or 30 of them they will be interested out of 30, then will think about to buy and maybe 2 or 5 people will initially make that buying decision right. And this is how the sales and marketing part is done.
Speaker 2:
It’s very similar that don’t expect that you be ready for the surprises, and also I would encourage you to be cautious with the advices you give believe in. So first, of course, you have to be open to so that you learn, keep learning and get the advices, but in the end you have to listen to your cat and don’t bother If someone says that it’s not going to work. They have no idea what they are saying. You are the one, or we are the one, who knows more about it because we are living in this entity. So just by a few presentations or a few hours of meeting and then you will always see this is what also I like, that people who are professional or successful VC let’s put it in that way they are the ones who are encouraging us and backing us. So there are all kinds of people you know more expertise or less expertise, with less success on this. You know more success. You just see, it’s very encouraging when we see that the quality people are actually appreciating us.
Speaker 2:
So don’t get discouraged by all the advice. Sometimes, if you ask the advice from VC, they just give you the advice because they have it all, but the majority of these VC folks are failing and so on. So don’t get discouraged. And even if you fail, it’s fine. You are enjoying it and you are living it. So just keep going. You have to keep watching of life. So just keep going, I would say, or change it. You have to keep watching, right, of course. So the idea which you started. I don’t think or not. It never happened, it’s already. It’s kind of impossible that you will end up with that idea ahead with having it successful. Then you have to change, you have to make a change.
Speaker 1:
Well, khabis, you have to be very patient Abhishek, first of all, we want to congratulate you on your success, number one, Number two I think it’s a great idea. It’s a novel idea, I think some people well, it’s nothing new, but I think the way you implement it, the way you use the natural resources, you use hemp and so forth, the way you integrate it together, I think it has a lot of future, a lot of great capabilities. We want to thank you for being our guest and we’d love to keep in touch and learn more from your progress and your successes. Thank you.
Speaker 2:
Thank you. Thank you, Alex, for this opportunity. I mean, it’s always nice to speak with you.
Speaker 1:
Wonderful. Well, good luck with that, thank you. Okay, abhishek, take care, have a good one.
