Plastic Waste Recycling Plant – Business Plan, Profit & Cost

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What will happen when the world’s natural resources run out? Why is it important to conserve our nature and protect our environment from toxic substances?

Humans should understand it is imperative to save trees so they keep providing us the oxygen. It is also vital to conserve soil. It is a must-needed element for human life’s survival, supporting our food systems by preventing soil erosions and regulating the water cycle.

Environmental protection is developed, besides developing human awareness. It is high time to comprehend and preserve the environment by preventing adverse impacts on nature. But, what can we do to protect our beautiful environment? What measures can we take to minimize and reduce pollution due to which many health issues are witnessed these days?

The foremost concern, which is the root cause of most environmental problems, arises from excessive plastic usage. Despite the government’s ban on plastic, people are not giving it a second thought before using things made from plastic. Before we get into this debate of how to use it so that it does not leave any adverse impact on the environment, let’s profoundly understand what plastic is.

Plastic Waste Recycling Plant – Business Plan, Profit & Cost

What is Plastic?

Plastic is a group of materials, either synthetic or semi-synthetic materials or naturally occurring, non-biodegradable substances. These substances are hazardous to air, water, and soil. Plastic is shaped when it is soft and hardened to retain the given shape.

The main ingredient through which plastic is made is known as polymers. Polymers is a substance made of multiple repeating units.

Undoubtedly, plastic affects human health as it is found in almost everyone’s tissue or blood in this world. Regular plastic exposure has given rise to many viruses and diseases such as cancers, impaired immunity, congenital disabilities, endocrine disruption, and various other ailments.

Contrarily, plastic is a component constituting a significant role as it is used to derive a comprehensive range of materials used in contemporary times. For instance, plastic is used in packaging, storing, building and construction, transportation, electronics, aerospace, and many more industries.

We all know it is difficult for most industries to survive if plastic is banned. Isn’t it? Moreover, it will be challenging for customers and end-users to stop using plastic completely. Although one can minimize its usage, but cannot wholly boycott it.

Even scientists are worried about the increasing usage of plastic, leading to a steep rise in the plastic waste that is non-biodegradable compared to the waste generation, which can be decomposed. To eliminate its colossal waste, people burn it, which releases harmful gas and causes air pollution.

So, is there a solution to this significant problem? Yes, there is a final solution to this: the plastic waste recycling plant. We will inform you of its business plan, profit involved after setting up this plant, the process, and Plastic Waste Recycling Plant Cost In India. However, let’s first get to know the harmful impacts of plastic and its products.

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Impact of Plastic and its Products

  • Plastic waste is toxic and creates immense damage to the land where it is decomposed.
  • Plastic waste is entirely non-biodegradable. This implies it cannot be destroyed or mix with the soil. In any case, to get rid of it, it has to be burnt, releasing toxic gases such as carbon monoxide that harms the environment and human health.
  • Soil gets damaged when plastic is buried inside it as it stops the aeration and passing of other minerals that are imperative for soil growth.
  • Water bodies and aquatic life is adversely affected due to the plastic waste being disposed of in the water. It hinders the sunlight and oxygen into the water, which disturbs aquatic life immensely.
  • Plastic is made by certain chemicals; those chemicals are toxic to the environment.
  • With the increase in plastic waste, it has occupied a considerable land share, which could be used for better purposes.

Plastic Waste Recycling Plant – Business Plan, Profit & Cost

Plastic Recycling Business Plan

Before jumping into the plastic waste recycling business, you need to chalk out a well-thought plan and understand the vital factors you need to consider before entering the industry. Also, a business plan helps in getting the loan approved and invite other investors.

Here is the plastic waste recycling plant business plan that would ensure that you remain on track and focused:

1. Market Research

As you are new to this business doing proper research would be of great help. You can divide the analysis into two parts, i.e., primary and secondary. The former would include visiting the recycling plants and preparing questionnaires based on it and the meet consultants.

Secondary research would comprise of reading articles, reports and analyze the data. Based on the study, prepare the pros and cons. This research would educate you about types of plastic, their demand, and selling price.

Type Name Recommended
PET Polyethylene Terephthalate Yes
HDPE High-Density Polyethylene Yes
PVC Polyvinyl Chloride Not really
LDPE Low-Density Polyethylene Not Really
PP Polypropylene No
PS Polystyrene or Styrofoam No

2. Location

Once you have made your mind about the type of plastic you wish to get into and its benefits, then you need to search for a space to operate from. Remember that the location should be spacious and safe; it would be best if the area selected is in the city’s outer part.

If you choose space in the outer of the city, it can have many advantages such as the land would be relatively cheaper, you would be able to connect with more industries that would make the sale easier.

Calculate the space required for accommodating all the machinery, equipment, waste product collected, area for storage, packing of recycled products, and small office space. There should be the accessibility of water and electricity in that place.

3. Legal Permit

Do not forget to get the license from regulatory bodies, the environment, and other local governments before starting the business. Doing recycling creates pollution, and if it is set up in contravention of the rules and policies, you might have to face action.

Get your recycling business registered with ROC and get the trade license from municipal authorities, pollution control board, and fire authorities as well. If you take all the permissions, you can get a tax benefit for 3 years and get a loan up to 2cr without putting any collateral in the bank.

4. Machinery

The primary things that you should check upon are machinery and raw material. Check on what kind of machinery is required as it depends on the size of the business, budget, type of plastic you will recycle, and end product you wish to create.

Try and purchase machinery that is easy to use, handy, consumes less power, and is highly efficient. After that research, where can you get the best quality and reasonable prices? Fix the deal with one who is offering all this with service benefits so that you can contact them in case of any issues.

5. Raw Material

For commencing the plastic waste recycling business at a low cost, you need to know the sourcing point of raw materials plus scrap and point of sale after recycling. A lot of people in this business contact rag pickers and municipality to help them getting raw materials.

Ensure that you save all the information you get in the excel spreadsheet as it would give you an idea of where you should obtain the raw material. You would need to contact multiple plastic waste suppliers to get an adequate plastic waste supply.

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6. Technicians and Labors

For doing the complete recycling process, you would need a technical mind plus workforce. Always hire a technician who has complete knowledge on how to work with machines and recycling plastic. In the future, if you think that the cost of a technician is high, then after learning, you can try it on your own.

You would also need to hire a few laborers that can help you complete the recycling process. The number of persons will depend on your business’s scale if it is a small, medium, or large recycling plant. You might also need accountants, advisors, managers, and engineers as well.

Make a team that would assist you in efficiently doing the job. As you are a newbie in this business, it is advisable to appoint an advisor who can help you complete the recycling process in the best possible way. Opt for people who are multitalented and are can do more than one job.

7. Capital Investment

As you have done the study for your business plan, this would have given you a fair idea of the amount of money required to begin your business. It would also depend on the location you select, size of your business, type of recycling plant, production scale, equipment are on lease or self-owned, etc.

8. Marketing

It is another vital part of the business plan that cannot be overlooked. You would need to make such a marketing plan with the help of which you can create brand awareness and make a market. You can also reach out to NGOs and volunteers and make your online presence to show your social participation.

For every marketing plan, you need to allocate a budget to plan other things accordingly. Social media is the best and most inexpensive way of promoting your business, so you can also try your hands on it.

9.Targeted customers

Many people think that who would be the buyers of recycled plastic when it is already available in the market in abundance. But, the truth is that people buy it because it is comparatively cheaper than normal plastic.

The type of recycled plastic also determines your market as the plastic that is recycled just once can be used to make a high-quality plastic product, and if the plastic is being recycled twice or thrice, they are used to make plastic bottles. The road department also uses Low-quality plastic in making roads along with bitumen.

This was the plastic waste recycling plant; now, let us understand the process so that you can get a fair idea of its entire making.

Plastic Waste Recycling Plant – Business Plan, Profit & Cost

Process Involved in Plastic Waste Recycling Plant

1. Sorting and Segregating the Plastics: The foremost thing you need to do is collect all the plastic waste and dumping. As plastic is of distinctive types, they also have joint material attached to them. You need to segregate plastic consisting of different polymers, strength, and quality.

2. Wash Segregated Plastic: Washing of plastic is vital. Before it is recycled, removing dirt and other materials already sticking to the plastic need to be removed. The other materials sticking to the plastic may include different adhesives, tapes, etc., that can be removed with washing. To make it clear, washing does not mean it is done with water, as particular chemicals are mixed with water to eliminate these materials from the plastic.

3. Shredding of the Plastic: Once it is washed, its shredding enables it to tear or break down into smaller pieces just like pellets. Shredding is essential and indispensable for this process as it makes it easy for plastic to get recycled. Logically, it is easy to recycle a smaller piece of plastic than recycling a massive piece.

4. Classification of Plastic Remains: Another crucial step after shredding is that plastic remains are identified using machines based on their type and quality. You might be wondering what’s the need for the classification of plastic remains.

It is because all the products produced after recycling plastic will create inferior quality plastic products. Hence, the manufacturer should know the quality of pallets before manufacturing a new product.

5. Extruding: The melted plastic is sent for being recycled after the pellets are melted to form new plastic sets.

6. Heat Compression: The next step is to supply the melted plastic raw material to the recycling unit. Once the melted material mixture is sent to the recycling unit, the recycling process is initiated.

The churned plastic waste is collected, which can be heated and melted in the container. The hot melted plastic is mixed thoroughly in the container and is given the shape of the product you want to acquire. Later, the melted plastic is cooled down, and the new plastic product is formed.

The best part about heat compression is that it does not require any sorting and segregation based on quality. Instead, the plastic is recycled in one go. This method is usually practiced when hard plastic products have to be made.

8. Monomer: Monomer is the process that creates a new polymer entirely by reversing the polymerization reaction and cleaning it. The best part of this process is that it does not degrade the quality of the plastic. Instead, it helps retaining its quality to a significant extent. Once the new production gets complete, it is sent for finishing and sold as raw material.

What Equipments are Required to Recycle the Plastic?

You may need different machines depending upon the quantity and quality of plastic you want to recycle. It may also vary based on the type of end product you want to acquire.

However, listed below are the equipment that are required for carrying out the activities of the plastic waste recycling plant

  • Melting Machine
  • Rope Processing Machine
  • Extruder Machine
  • Recycling Plant
  • Sorting Machine
  • Cleaning and Washing Machine
  • Conveyer Belt
  • Compressor

Return on Investment and Profits

As the initial investment is high, you may not enjoy the starting returns. However, once you manage to minimize your investment cost, your profit margins will increase. In addition, to multiply your profits, you can also start manufacturing new products from recycled plastic such as plastic boxes, bags, polythene, bottles, pens, spoons, plates, containers, forks, and many other items.

The best part about making end products from recycled plastic is that most customers prefer purchasing them because of their hardness and durability. Also, these products are cheaper than the products made from fresh plastic.

You can also increase your ROI by start selling recycled plastic to distributors, contractors, or manufacturers. They will pay you a good amount of money which will increase your net profit.

Also Read: 25 Profitable Small Scale Manufacturing Business Ideas in India

Plastic Waste Recycling Plant Cost in India

The cost of the plastic recycling plant depends on the different types of plastic waste recycling plants you choose. Various company plants in the market are available at distinctive costs. Mostly all the machines are batch operating, semi-continues, and fully continue.

Some other factors that affect the plastic waste recycling plant cost in India include:

  • The quality of the machine.
  • The profit margin you make.
  • The type of machine you opt for.
  • The resources used.
  • Whether the equipment is purchased or leased.
  • The scale of your production and sale.

To calculate the precise cost of setting up the plastic waste recycling plant, one needs to figure all the required machines and equipment mentioned in this guide. You will need to purchase all the machinery for recycling the plastic.

As you have learned, calculating the total land cost in which the recycling plant is about to set up is vital. It is recommended to save money on buying land. But how can you do it? To save the land cost, instead of buying it in the city’s heart, you can always explore the options and buy it on the town’s outskirts. Once after ensuring you will get proper facilities in that area.

If you can arrange the funds, then you may go for the investment from your savings. Or else you can always opt for getting a loan from the bank or any other financial institution.

Coming over to the cost, the factory set up can cost between Rs 5 to 10 lakhs. Moreover, you need to spend at least 3.5 lakhs which can go up to 35 lakhs. Always consider buying good quality machinery as compromising the machinery’s quality may not produce end plastic products of good quality and not execute the overall tasks efficiently.

The running or ongoing expense varies based on your scale of business. It may come between 1-2 lakhs per month or beyond. These expenses exclude the cost of unexpected expenses or faults; you can add labor and technician cost, which varies depending upon the type of defect or fault you experience. The other running expense include the purchase of plastic raw material, which may come around 25 to 50 thousand per month.

You can also add the transportation, marketing, grading, manufacturing, and packaging cost. If you sum up the total cost, the initial or one-time investment will come between 10 lakhs to 50 lakhs, whereas the running or monthly expense ranges between 1.25 lakhs to 2.5 lakhs per month.

Plastic Waste Business Plan

Type of Granules Selling Price Recommendation
ABS Plastic granules 45-110 Yes
PP Raffia Granules 40-120 no
black plastic granules 68-130 No
PP black granules 45-60 no
white plastic granules 45-80 yes
LDPE Recycled plastic granules 35-80 yes
natural polypropylene granules 76-85 no
PVC Plastic granules 70-120 Yes
HD Plastic granules 60-100 yES
white PPCP Granules 80-100 yes
black reprocessed ABS Plastic granules 57-90 no
natural LD plastic granules 60-80 No
recycled granules 55-96 No
PP granule 46-120 Yes
yellow recycled plastic granules 90-150 No
HDPE plastic granules 60-120 yes
yellow reprocessed ABS Plastic granules 80-133 no
Colored granules 39-76 no
plastic semi-fresh granules 69-90 no
Reprocessed plastic granules 54-80 no
HIPS Plastic reprocessed granules 80-120 Yes
Putting all the data together, setting up the plastic waste recycling plant is a sure-shot business idea to start in 2021. If you have the investment power and want to earn a good return on investment, do not think much! Remember, this industry has a massive market.

Today, even the roads are getting constructed with plastic waste; you can contact the road contractors and supply them with the plastic waste in a decent amount of money, which they will happily purchase.

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Also, the products made from recycled plastic have a vast market. It is solely because these products are enriched with robust quality and are highly durable.

There is no risk involved as the business is feasible and sustainable and has a comprehensive scope in the long run. It can turn out to be an astonishing money-making model if you will invest your time and money.

Sushma Singh

Sushma is a financial expert and online entrepreneur. With years of experience in personal finance and business management, she is dedicated to empowering individuals to take control of their finances and make smart investment decisions. Through Moneymint's website, she provides insightful tips, strategies and resources to help individuals grow their wealth and achieve financial stability. Join Sushma on the journey to financial freedom today!

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