Shah Hemp Inno-Ventures became our “add-venture“ in 2015. The initial spark to start a sustainable hemp business came to us in the wake of the devastating earthquake that struck Nepal in April of that year. We were looking to add value to the local community in Janakpur, Nepal, where Dhiraj Shah is from, while enjoying the journey as a couple. We didn’t want to do this as “work”. We wanted to infuse our lives with joy and purpose, do something we love, and ensure our values are reflected in our living environment as well as in how we influence the lives of people around us.
Long before the Asian market took notice of this miracle plant’s potential, we were faced with the monumental task of reconstructing homes in Nepal. We were drawn to hempcrete — a lightweight, flexible, and earthquake-resistant material. We only knew two things back then: 1 – the hemp plant is an abundant resource in Nepal, growing wild in the mountains, and 2 – hempcrete can offer a solution to the housing crisis brought on by the earthquake.
Despite our minimal knowledge, we were guided by an unwavering vision — to transform Nepal’s hemp into building solutions, and while rebuilding in a way that positively impacts our local community. With this clarity of purpose, we sought mentorship from experts in the hempcrete and hemp business. These early mentors provided us with crucial insights on how to work with hempcrete for construction. However, we soon faced our first major hurdle: the supply chain.
Overcoming Supply Chain Challenges
Creating a sustainable supply chain for raw hemp materials was essential to our mission. While importing from established hemp markets seemed like an easy solution, it went against our core mission of making a positive local impact. The challenge was immense — wild hemp plants were abundant in Nepal, but they weren’t yet recognized as a valuable resource for the building industry. Legally navigating the disputed status of hemp in the country was a learning curve. We started investing time into researching legal acts and regulations, and as a result, Dhiraj has become an expert in the legal hemp business across Nepal. We found a way to work with local communities where the cultivation and commercial use of wild hemp were permitted.
As we delved deeper, we realized that building with hempcrete wasn’t just about securing hemp hurds — it also required high-quality lime, natural additives, structural materials, and more. Each of these components needed its own supply chain, and we had to educate local communities about their importance. Establishing the supply chain for all these materials wasn’t just about procurement. It required building awareness, training people, and setting up processing systems. We also build our own machines that assist individual workers in creating hempcrete, in order to ensure our workers are always needed rather than being replaced by big commercial equipment.
We partnered with local communities to establish a sustainable supply chain for hemp hurds. We also had to ensure that the lime and other additives met the necessary quality standards. This meant working with local suppliers and educating them about the specific elements that make hempcrete construction successful. It was a massive undertaking, requiring patience and collaboration across multiple industries.
Despite these challenges, we succeeded in creating a local processing and packaging unit with the community’s support. This ensured that all the required raw materials, from hemp hurds to lime, were ready to ensure the realization of our construction projects.
Adapting Technology and Building Local Capacity
With a supply chain in place and a processing unit operational, our next challenge was to adapt hempcrete technology to Nepal’s unique building styles and construction practices. This required not only learning the technology ourselves but also training the local construction workforce in its application. It was a complex and time-consuming process, and we were fortunate to have early adopters in our community who understood the immense benefits of hempcrete. Their willingness to integrate this innovative material into their projects allowed us to showcase hempcrete’s potential.
The support from these pioneers helped us fine-tune the technology and demonstrate its effectiveness in real-world, sustainable business, applications. The work didn’t stop there. We needed to make hempcrete market-ready, create awareness, and train more people in this construction technique.
Key Lessons for Building a Resilient Hemp Business
Reflecting on our journey, there are a few essential lessons for anyone looking to start or grow a resilient hemp business:
Clarity of Vision: In the face of challenges, a clear vision is your guiding light. For us, it was the commitment to merging local resources with local social impact to rebuild Nepal. This vision kept us on track when the path seemed uncertain.
Mentorship is Critical: We couldn’t have achieved what we have without the guidance of mentors. Their expertise provided us with invaluable knowledge, especially when dealing with raw hemp materials, legal frameworks, and new technologies.
Control of the Supply Chain: A sustainable business requires a reliable supply chain. For us, this meant working closely with local communities, understanding legal regulations, and creating local processing units. Maintaining transparency and control over this process was crucial.
Engage the Community: Our success is deeply tied to the involvement of local communities in building our sustainable business. From gathering raw materials to processing and construction, the role of employees that are a part of actively engaged communities was integral. Empowering people locally was our vision for long-term sustainability and it built trust with our team from day one.
Understand the Legal Landscape: When entering a market that’s in dispute — like the hemp business in Nepal — having a thorough understanding of legal acts and regulations is critical. We navigated these complexities early on to ensure our business was on solid legal ground.
Continuous Learning: The journey of building a hemp business is one of constant learning. From understanding the basics of a financially-viable venture to adapting new technologies, we kept learning at every step.
Advice for New Hemp Entrepreneurs
Many entrepreneurs are drawn to the hemp business, enticed by the potential for big profits. However, success requires more than just recognizing an opportunity. It demands a deep understanding of the various elements that make a sustainable business thrive — from legal knowledge and community engagement to supply chain management and technological adaptation.
Our advice to aspiring hemp entrepreneurs is simple: don’t rush the process of building a financially, socially and environmentally sustainable business. Take the time to build strong foundations. Seek out mentorship, understand your local resources, and build meaningful relationships with your community. Most importantly, stay true to your vision, even when the path gets tough. Resilience is key to success in the hemp business, and the rewards of persistence are immense.
As we continue our journey with Shah Hemp Inno-Ventures, we remain committed to fostering sustainable development, empowering local communities, and pushing the boundaries of what hemp can do. Our story is one of overcoming obstacles, learning from the best, and never losing sight of our core values.
