Dhampur Bio Organics and Planetary launch India's first mycoprotein venture
Indian sugar giant Dhampur Bio Organics has partnered with Swiss startup Planetary to produce mycoprotein from sugar and molasses, targeting the nation's severe protein deficiency.
Planetary and Dhampur Bio Organics have launched a joint venture to produce mycoprotein in India using sugar and molasses as feedstock. The companies signed a 10-year exclusive deal, forming a joint venture company for commercialization and offtake in a country where 73% of the population is protein-deficient. Dhampur Bio Organics will establish and operate the production infrastructure using Planetary’s licensed technology, while Planetary will act as the technology provider and offtaker.
Production Technology
The partnership will use Planetary’s BioBlocks platform to convert sugar and molasses into mycoprotein at an industrial scale. This technology enables the fermentation process that transforms these feedstocks into a novel food protein. Dhampur Bio Organics is responsible for constructing and operating the dedicated production facility, using the licensed intellectual property only at the approved site.
Strategic Impact
This venture directly addresses India's critical reliance on imported protein. Currently, 98% of the whey and plant proteins consumed in the country are imported. The initiative aligns with India’s national BioE3 strategy to accelerate biomanufacturing and supports the government’s target to grow the bioeconomy sector to $2.6 trillion by 2047. For Dhampur Bio Organics, it represents a forward-integration opportunity, creating a new revenue stream from its core sugar and molasses operations.
The move is part of a broader push for food innovation in India. A Centre for Smart Protein and Sustainable Material Innovation launched in Bengaluru in 2024, alongside an Alternative Proteins Innovation Center. The government also opened an animal stem cell biobank in Hyderabad in 2023 and an incubation centre for precision fermentation and CRISPR technologies in March 2024.
Economic Model
The financial arrangement between the partners includes a royalty payment and a structured setup fee. Dhampur Bio Organics will pay Planetary a royalty equivalent to 10% of its after-tax revenue from the venture, payable each quarter. An additional one-time fee will cover engineering, project launch, installation, commissioning, process training, and handover support. This launch fee is determined on an open-book basis, implying variable initial capital expenditure until project completion.
The agreement, executed on October 19, 2026, following a non-binding term sheet signed in January 2026, is valid for an initial 10-year period. It can be renewed for successive five-year terms through mutual consent. Planetary, which raised $28 million earlier this year, aims to enable ultra-low-cost mycoprotein production under $1 per kilogram through such partnerships in protein-deficient regions. The company stated its sugar partnership model is now a global footprint, aiming to turn sugar mills into protein factories. The partnership is also expected to achieve a 30% cost reduction when exporting the produced mycoprotein into Western markets.
Planetary’s key obligations include providing licensed IP, technical services, launch support, maintenance, and ongoing assistance. Dhampur Bio Organics must handle manufacturing, secure regulatory approvals, make royalty payments, and ensure compliance with confidentiality and audit standards. The company expects the venture to diversify its business and improve profitability. Dhampur Bio Organics will establish and operate mycoprotein production infrastructure in India using Planetary’s licensed technology.
