Due to the well-established multiple problems associated with currently used gelatin-based capsule shells, there is a global demand for the technology on biocompatible, non-gelatin, and veg capsule shells. Further, due to the outbreak of ‘mad cow disease’ in Europe in 1992, gelatin, the main ingredient of edible capsule shells was removed from GRAS category of FDA. To address the issue and to develop non-animal gelatin capsule shells, CSIR-CSMCRI has developed a technology to produce these items from phycocolloids. Further, the capsule shells can be used by pharmaceutical companies for making capsules of non-animal gelatin source. The physicochemical properties of the capsule shells are at par to that of their gelatin counterparts