Taruwar Agro: Three Bihar Friends Built a Rs 2.5 Crore Business from Banana Waste

In Bihar's farms, banana plants are often considered useless after they bear fruit. Farmers typically cut down the remaining stems and remove them from their fields, as they have little practical use once the harvest is complete.

However, three friends saw a business opportunity in what others viewed as agricultural waste.

Jagat Kalyan, Satyam Kumar, and Nitish Kumar Verma chose entrepreneurship over conventional career paths and began exploring ways to extract fiber from banana stems. Their goal was not just to create a new product but to build a business around Bihar's locally available resources.

This vision led to the launch of Taruwar Agro Industries.

Today, the company manufactures a variety of products from banana fiber, including file folders, yoga mats, baskets, and prayer mats. The remaining parts of the banana plant are used to produce vermicompost and plant nutrition liquid, ensuring minimal waste. In FY26, the company recorded revenue of approximately Rs 2.5 crore.

The model has created additional income opportunities for farmers, who can now earn from banana plants even after harvesting the fruit. At the same time, the company's processing and manufacturing operations have generated employment opportunities for local communities.

Taruwar Agro's journey is more than the story of a startup. It reflects a growing effort to identify business opportunities in Bihar's local resources and create sustainable livelihoods through innovation.

From Friendship to Business Partnership

The three founders first met while pursuing their MBA. Coming from different parts of Bihar, their friendship gradually evolved into a business partnership.

Jagat Kalyan hails from Khagaria and is the only child of his parents. His grandfather was a farmer, while his maternal grandfather worked as a government officer in the agriculture department. His father worked in the banking sector, and his mother is a homemaker.

Due to his father's job, the family later moved to Patna. After completing school, Jagat pursued engineering in Bengaluru and later earned an MBA. During his management studies, he interned with companies working in environmental sustainability and Internet of Things (IoT) technologies. After graduation, he received job opportunities from organizations in Tanzania, Dubai, and IDFC First Bank.

Despite these prospects, he chose a different path. Along with his friends, Jagat decided to build something in Bihar.

Speaking to YourStory, Jagat Kalyan, CEO of Taruwar Agro, said:

"All three of us had several job opportunities. We even had chances to work abroad. But during the COVID-19 pandemic, we started thinking that if we were going to work hard, why not do it for ourselves? Why not create something for our state and our people? We wanted Bihar to produce something that could earn recognition at both national and global levels."

The founders then began researching Bihar's natural resources and the business opportunities associated with them.

Nitish Kumar Verma is from Bihar Sharif. He completed his early education in Bokaro before studying commerce in Bihar Sharif. After earning a B.Com (Hons) degree from Nalanda, he pursued an MBA. Before joining the venture, Nitish worked with companies such as S&P and Infosys.

Satyam Kumar comes from Hayaghat in Darbhanga district. He grew up in a family with two sisters and a brother. His mother is a government officer, while his father is a farmer. After completing his schooling in Darbhanga, Satyam earned a degree in Economics and later pursued an MBA. During his studies, he gained experience through internships and work with environmentally focused companies. Those experiences later proved valuable in his entrepreneurial journey.

When a Discarded Banana Stem Revealed a Business Opportunity

The three friends spent several months researching different sectors before turning their attention to banana cultivation.

Bihar is one of India's leading banana-producing states, with large-scale cultivation across several districts. However, once the fruit is harvested, the banana stem is usually left behind in the field and often discarded by farmers. The founders saw an opportunity where others saw waste.

What farmers considered agricultural residue could become valuable raw material for Taruwar Agro.

The team began studying the process of extracting fiber from banana stems. During this phase, they also received guidance from Dr. Sunita Kushwaha, then Head and Senior Scientist at KVK Vaishali, and her team.

Speaking about the early days, Taruwar Agro Director Satyam Kumar said:

"When we started researching banana plants, we realized they had enormous potential. After harvesting the fruit, the plant becomes a burden for farmers. We started looking at the same plant as a raw material."

He added:

"Our objective was not just to produce fiber. We wanted to build a model that could generate additional income for farmers, create jobs for local communities, and make productive use of agricultural waste. With this vision, we launched Taruwar Agro in 2021."

From Farms to Factory: Building a Local Value Chain

Taruwar Agro began operations in Hajipur, a region known for banana cultivation and located close to Patna. The company purchases banana plants after they have produced fruit. In many cases, farmers deliver the stems directly to the processing unit.

This arrangement benefits farmers in multiple ways. It helps clear their fields, eliminates the cost of removing the plants, and creates an additional source of income. What was once considered waste has now become a marketable resource.

The strength of the model lies in its local approach. The raw material is sourced locally, and the initial stages of processing also take place within the region. As a result, a small but effective local value chain has emerged, connecting farmers, workers, and manufacturing operations.

Multiple Products from a Single Banana Plant

Using specialized machinery, the company extracts fiber from banana stems. The fiber is then separated, cleaned, and dried before being used in various applications. Banana fiber can serve as a raw material for handicrafts, textiles, sanitary pads, and several other products.

Taruwar Agro also manufactures its own range of products, including file folders, yoga mats, baskets, and prayer mats made from banana fiber. The company is additionally exploring banana-fiber-based vegan leather and blended textile materials.

One of the most distinctive aspects of the business is its effort to minimize waste. The material left behind after fiber extraction is used to produce vermicompost. Sap extracted from the banana plant is processed into a plant nutrition liquid. The company is also working on products such as juice and jelly made from the banana core stem.

Beyond this, Taruwar Agro is exploring opportunities in banana chips, banana flour, and banana starch.

Nitish Kumar Verma explained:

"We do not look at banana plants only as a source of fiber. Our goal is to utilize as much of the plant as possible."

He further added:

"The fiber can be used to create a wide range of products. The remaining pulp is converted into vermicompost. Other parts of the plant can be used for food and agricultural products. In this way, a single banana plant can generate multiple products and multiple income opportunities."

Expanding Beyond Banana-Based Products

Taruwar Agro is now exploring growth opportunities beyond banana processing. The company has entered the makhana and healthy snacking segment, offering raw makhana and roasted makhana in more than ten flavors. It is also exploring walnut processing and other dietary products.

The idea behind this expansion remains the same: creating value-added products from Bihar's agricultural resources instead of selling them only as raw materials.

For decades, Bihar has been known for its agricultural output. Companies like Taruwar Agro are helping redefine that identity by focusing on value addition and product development. Their approach aims to ensure that agricultural produce does not stop at wholesale markets but is transformed into higher-value products that can generate greater economic returns for farmers, entrepreneurs, and local communities.

From Rs 15 Lakh to Rs 2.5 Crore in Revenue

Taruwar Agro was launched with an initial investment of around Rs 15 lakh, along with approximately Rs 5 lakh in working capital. The founders arranged the funds through personal savings and support from their families. To date, the company has not raised capital from external investors.

The journey, however, was far from easy.

One of the biggest challenges was understanding how banana fiber could be processed and used commercially. Information available through books and online sources was limited, so the founders traveled to different places, studied existing practices, and conducted extensive experiments to develop their process.

Sourcing raw material was another hurdle. While banana plants were readily available in farms, transporting them to the processing unit was not straightforward. The founders also had to convince farmers that the stems left behind after harvesting bananas could become an additional source of income rather than waste. To address this, the company conducted awareness efforts and worked closely with farming communities.

Satyam Kumar recalls:

"We faced multiple challenges at the same time. The banana plants were available, but they had to be collected and transported from farms to our unit. Farmers needed to be informed about the opportunity. We involved local people to make the process work."

The company then encountered another challenge: the shortage of skilled workers. Since banana-fiber processing is still a niche industry, trained workers were difficult to find. Taruwar Agro chose to train local people itself. Today, women make up nearly 60% of the company's workforce.

As a result, the business has created an impact beyond farming. Local processing and manufacturing activities have generated employment opportunities while strengthening the rural economy. In FY26, Taruwar Agro recorded revenue of approximately Rs 2.5 crore.

Expanding from B2B to B2C

Creating products was only part of the challenge; reaching customers was another.

In the early days, the company sent samples to potential buyers for testing and feedback. Gradually, orders started coming in. To reduce transportation costs, the founders worked with multiple logistics and courier providers and later established distribution arrangements with India Post and other partners.

Today, Taruwar Agro operates through both B2B and B2C models.

The company supplies banana fiber and fiber-based materials to other businesses, while government agencies are also among its buyers. At the same time, products such as yoga mats, baskets, textiles, vermicompost, plant nutrition liquids, and food products are sold directly to consumers.

Taruwar Agro markets its products through its own e-commerce platform as well as major online marketplaces, including Amazon, Flipkart, and Meesho.

According to the founders, setting up a business of this nature can take between eight and ten months. Reaching a break-even stage may require another one to one-and-a-half years. After that, the business can gradually move toward profitability as operations scale and market demand grows.

Building Opportunities in Bihar Through Local Resources

Over the next three years, Taruwar Agro plans to strengthen its presence in the sustainable fashion and domestic consumer markets. Along with expanding its existing product range, the company aims to develop banana-fiber-based vegan leather, banana flour, starch, and textiles containing a higher proportion of banana fiber.

The company is also exploring opportunities in the health and sustainable products segments.

Beyond expanding across India, Taruwar Agro is looking at international markets as well. The company has already sent product samples to France and the Philippines, and future discussions will depend on the feedback and results from these trials.

For the three founders, Taruwar Agro is more than just a business. It represents an effort to connect Bihar's natural resources with entrepreneurship and value creation. They believe the state has abundant raw materials and human talent; the challenge is identifying new ways to utilize them.

Jagat Kalyan says:

"Bihar does not lack opportunities. The state has natural resources, hardworking people, and many products that can benefit from value addition. What is needed is for young people to recognize these opportunities."

He adds:

"Starting a business does not always require beginning on a large scale. Even small ventures can create jobs and build markets. If more young people choose entrepreneurship in Bihar, it can strengthen the state's business ecosystem and identity."

From Farms to Markets: A Changing Story of Bihar

The founders' journey is still in its early stages, but their story highlights an important shift in how agricultural resources are being viewed.

In Bihar's farms, banana cultivation is no longer just about producing fruit. The stem that remains after harvest is now being transformed into fiber, which is used to manufacture file folders, yoga mats, baskets, and other products. The remaining biomass is converted into vermicompost and plant nutrition liquid, while future plans include developing additional food and sustainable products from the same raw material.

This approach to value addition could create significant business opportunities for Bihar.

By processing agricultural resources locally and connecting them with wider markets, farmers, workers, and entrepreneurs can all benefit from the resulting value chain.

Taruwar Agro's journey offers an example of what is possible when agricultural waste is viewed as a resource rather than a problem.

Three friends identified business potential in a plant that was often discarded after harvest. What began in Hajipur has grown into a venture spanning fiber products, agriculture, food processing, and sustainable materials.

As Bihar continues to evolve, such experiments are helping shape a new entrepreneurial identity—one where what was once considered waste can become the foundation for new businesses, new sources of income, and new employment opportunities.

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