How to Start A Plastic Waste Recycling Plant - Business Plan, Profit & Cost

Plastic is a term that refers to a set of materials that are either synthetic or semi-synthetic in nature or non-biodegradable in nature. These compounds are harmful to the environment, including the air, water, and soil. When plastic is soft, it is sculpted and then hardened to keep the shape. Waste has become a global issue that must be addressed if the world's resource and energy concerns are to be solved. Therefore, starting a plastic recycling plant is a great idea. 

Plastics are created from finite resources such as petroleum, and significant progress is being made in developing systems to recycle plastic trash, among other things. 

Mechanical recycling methods for making plastic products and feedstock recycling methods for using plastic as a raw material in the chemical industry are widely used. Awareness of the importance of thermal recycling using plastics as an energy source to conserve petroleum resources has recently grown. Therefore, using these approaches to a plastic waste recycling plant can lead to profitable business opportunities.

Did You Know? One of the major events of the world of plastics occurred between 1838 to 1872 when Polyvinyl Chloride (PVC) was first polymerised. 

Impact of Plastics on Environment and Humans

Polymers are the primary ingredients used in the production of plastic. A substance made up of many repeating units is known as a polymer. Plastic has an obvious impact on human health and it is found in practically everyone's tissue or blood in the world. Plastic pollution is one of the leading causes of pollution in the 21st century. Many viruses and diseases have been linked to regular plastic exposure, including malignancies, reduced immunity, congenital impairments, endocrine disruption, and various other disorders. 8.3 tonnes of plastic has been accumulated on land as plastic waste. These non-biodegradable plastics are often consumed by animals leading to their death. Moreover, it has also polluted the marine environment leading to suffocation and ingestion of hundreds of marine species. 

However, plastic is useful and costs less as compared to other materials. Plastic is an important component since it is utilized to create a wide range of materials in today's world. Plastic is used in various industries, including packaging, storage, building and construction, transportation, electronics, aerospace, and many more. A plastic recycling business in India can be highly useful in these sectors.

Recycling and Reusing of Plastic Waste

Recycling and reusing plastic is the most effective strategy to decrease waste. In recent years, there has been an increase in the recycling of plastic garbage. Initially, it was viewed as a technique to reduce waste and make use of waste, but it has now evolved into a full-fledged business opportunity.

Many people are establishing plastic recycling plants these days. Plastic waste such as plastic bottles, polythene, polybag, plastic containers, boxes, packages, sheets, and other similar items are recycled into valuable products.

Also Read: Setting up a successful plastic manufacturing 

Plastic Recycling Business in India

Before you embark on the plastic recycling business, make sure you have a well-thought-out plan in place and understand what the most important factors are to be considered before starting it. The following are some considerations for you to make. These considerations include the type of plastic you will recycle. Know ahead of time how that plastic will be recycled. 

Another consideration is the size of the operation: Are you going to run a large, medium, or small plastic recycling plant? After determining the scale of operation, determine the total investment required to determine the cost of a plastic recycling factory in India.

Consider the machinery and the acquisition of raw materials. After you've done all of that, you'll need to gather plastic, assess your target market for recycled products, and calculate your profit margins and total returns on investment. As a business owner, one thing to keep in mind is that your investment should always pay off. Your expenses should always be lower than your revenues, and your long-term goal should be to maximise those profits.

Business Plan for starting a plastic recycling plant

The basic requirements of starting a plastic recycling factory are:

1. Location

Once you've decided on the type of plastic you want to work with and its advantages and disadvantages, you'll need to find a location to work from. Keep in mind that the place should be open and safe; it's better to choose an area on the outskirts of town.

If you choose space on the outskirts of town, you will benefit from several factors, including lower land costs and easier access to additional industries, facilitating sales. It would help to ensure that the location had enough access to electricity and water supplies. These are the absolute minimum needs. You should also consider instances in which you may be subjected to power outages.

You can only operate if you obtain a legal permit. Get your plastic recycling company registered with the Registrar of Companies (ROC) in India. To ensure that your firm complies with all safety precautions, obtain a trade license from the local authorities and the pollution control board, as well as certification from fire authorities. Before starting your firm, make sure you have the necessary permits from regulatory agencies, the environment, and other local governments. Recycling produces pollution, and if it is put up in violation of the rules and policies, you may face legal consequences.

2. Type of plastic recycling machine

The first things you should look at are what kind of machinery you'll need based on the size of your company, your budget, the type of plastic you'll be recycling, and the end product you want to make.

After that, conduct market research to determine which dealer offers high-quality machines at reasonable prices with additional services. Seal the contract with the company that offers the finest costs and service perks so that you can count on them for technical assistance in an emergency. Purchase machinery that is simple to operate, convenient, consumes less energy and is extremely efficient.

3. Source and Availability of Raw Material

To start a low-cost plastic recycling plant, you'll need to know where to get raw materials and garbage, as well as where to sell recycled goods. Many people in this industry approach rag pickers and local governments to obtain raw materials. To obtain good quality raw material, reach out to local manufacturers and establish stable workflow relationships to ensure proper input of raw materials. 

4. Workforce

To carry out the entire recycling process, you will undoubtedly need a technical mind and manpower. Employ a technician that is familiar with the machinery and can recycle plastic. To save money, hire the technician for a period and then do it on your own after learning from him. You can also seek assistance from guides or enrol in a brief course on the subject. You should also engage some labourers to complete the project according to your needs.

Accountants, advisors, managers, and engineers may also be required. Assemble a team to support you in completing the task efficiently. Because you are new to this industry, it is a good idea to hire an advisor who can assist you in completing the recycling process as efficiently as possible. Choose those who are multitalented and can perform multiple tasks. 

5. Money required to begin the business

Because you researched your business plan for the plastic recycling plant, you should have a good sense of how much money you'll need to get started. It would also depend on the area you choose, the size of your firm, the sort of recycling plant you use, the scope of your production, whether you lease or own your equipment, and so on. 

6. Targeted Audience and Marketing 

A budget must be set aside for each marketing strategy for the plastic recycling plant to plan other details correctly. You can use social media to promote your business because it is the greatest and most cost-effective approach to do it.  Many people believe that there will be no buyers for recycled plastic because it is currently abundant on the market. However, the truth is that consumers buy it because it is less expensive than regular plastic.

The grade of recycled plastic decides the market for your potential customer. Plastic that has been recycled once is used to make high-quality material products, while plastic that has been recycled a second or third time is used to make plastic bottles.

The road department is the consumer for low-quality recycled plastic used in road construction alongside bitumen. There are numerous examples of road construction using recycled plastic by the road department. You can supply samples of your product by contacting other businesses that manufacture plastic products.

Profits and Return to be Earned on the Investment

You may not be able to enjoy the initial returns due to the expensive initial investment. However, if you can reduce your investment costs for the plastic scrap business, your profit margins will improve. You can also start making new products from recycled plastic, such as plastic boxes, bags, polythene, bottles, pens, spoons, plates, containers, forks, and a variety of other items, to increase your revenues.

The market for finished recycled materials is enormous. In comparison to products created of fresh plastic, such items are inexpensive. The best aspect of using recycled plastic to create end products is that most buyers like them because of their hardness and durability. Also, recycled plastic products are quite durable, which is one of the reasons why people prefer to purchase them. Furthermore, these products are less expensive than those manufactured with fresh plastic. Because the prices are cheaper than those of other similar products on the market, it enjoys a higher level of customer demand.

Start selling recycled plastic to wholesalers, contractors, or manufacturers to boost your return on investment. They will pay you a large sum of money, increasing your net profit.

Cost of Plastic Waste Recycling Plant in India

The cost of a plastic recycling plant is determined by the type of plastic waste recycling plant you select. Almost all of the machines are batch, semi-continuous, or fully continuous.

The factors based on which the cost will be decided are the following-

1. Type of Machine to be used
2. Quality of the machine
3. Resources used
4. Profit Margin to be made
5. Equipment - Leased or Purchased
6. The scale of sale and operations

To determine the exact cost of establishing a plastic waste recycling facility, add up all of the costs based on the above factors. It is critical to calculating the overall land cost for the recycling plant. It is suggested that you conserve money when purchasing land. But how are you going to accomplish it? Instead of purchasing land in the city's center, you can always look into purchasing land on the outskirts of town to save money. After that, double-check that you'll have access to adequate amenities in that location.

If you can come up with the funds, you could use your savings to invest. Alternatively, you might take out a loan from a bank or another financial organisation. The continuous or operational cost varies depending on the size of your company. Also, the other costs include the marketing, transportation, manufacturing, grading, and packaging cost.

Expected Cost for setting up a plastic recycling plant

The expected cost has been given below in the table:

Also Read: Most popular profitable transportation business ideas

Conclusion

There is a huge market potential for recycled products from the plastic recycling plant. Thus, this business has very vast potential. There are fewer risks because the business is viable, sustainable, and has a broad scope in the long run. If you put in the time and money, it has the potential to be a fantastic money-making concept. We hope the article has given you the relevant information about the plastic recycling business plan, waste recycling plant cost, and profit.

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