In this study, the production of activated biochar capsules from sawdust for multipurpose medicinal use was investigated as a value addition strategy. The sawdust was chemically activated using phosphoric acid at a temperature of 450 ^oC in the absence of oxygen to give a 52.2% of activated biochar from the sawdust. The activated biochar’s ash content was 4.0%, moisture content 2.0% and the iodine number 431 mg/g. A process was designed for the production of activated biochar capsules for multipurpose medicinal use. An environmental analysis was done taking for proper site selection and plant layout. An economic analysis carried out indicated a return on investment of 44% and a payback period of 2.3 years. Saw dust can be economically value added to activated biochar capsules as a waste management initiative.