written by Khatabook | September 9, 2021


Table of content

Table of content

How To Start A Plastic Recycling Business

Plastics have been around for just over a century, but they have already infiltrated practically every area of our life.  Plastic materials are used in everything from children's toys to food packaging. We use plastics because they are one of the most inexpensive and easily available materials. Plastics are everywhere around us, but their widespread use also means that we have many of them to dispose of. Recycling plastic garbage and turning waste into wealth is the best way to deal with this problem. Let’s read more about plastic recycling.

What is Plastic recycling?

Plastic recycling is a practice of recovering scrap or waste plastics and turning them into usable goods, sometimes in radically different forms than before. Plastic recycling assists in modifying the environment and provides a huge potential to earn a lot of money with less risk. In the 21st century, plastic recycling is essential, both as a means of dealing with existing trash and as part of a resource efficiency.

Did you know that the typical person uses 11 kg of plastic each year, resulting in annual global consumption of 300 million tonnes of plastic? According to the study, only 9% of plastic is recycled, with the other 12% is burned, and the remaining 79% is in landfills. More than 5 trillion pieces of plastic are thought to be in our ocean, enough to circle the globe 400 times. Because plastic is not a biodegradable substance, it cannot be decomposed. As a result, if more plastic is discarded, it contaminates land as well as our water. Therefore, it is important to follow the three Rs when it comes to plastics- reduce, reuse and recycle.

How to start a plastics recycling business?

There are a few steps that you need to follow to start a plastic recycling business. Follow these steps to garner plastic recycling business profit in india.

1. Conducting a comprehensive market research 

A thorough market research is required if you wish to start a plastic recycling business in India or anywhere else in the world. The recycling business in India is relatively new and has yet to receive significant attention; hence, it is preferable to conduct an in-depth study on the market, its functions, and objectives to understand their work better.

You can break down your study into pieces and begin by reading papers and articles to examine data. Later, for your research, visit current recycling businesses, fill out questionnaires, meet with advisers, and get answers to your questions before laying out your plastic recycling business plan. 

If you plan on starting a plastic recycling plant, you must first learn about the many forms of plastics. The following are the most common types of plastic that you should be aware of:

  • Polyethylene Terephthalate (PET or PETE)

  • High-Density Polyethylene (HDPE)

  • Polyvinyl Chloride (PVC or Vinyl)

  • Low-Density Polyethylene (LDPE)

  • Polypropylene (PP)

  • Polystyrene (PS or Styrofoam)

2. Prepare a Business Plan 

Making a business strategy is crucial in launching a plastic recycling business. Every organisation, including this one, necessitates a concise plan. Here is a list of things to consider before starting a plastic recycling business:

  1. To begin, consider the prerequisites for a Plastic Waste Recycling Company.

  2. Investigate the overall investment needed to set up a recycling plant.

  3. Determine whether a factory or a land is required.

  4. Begin gathering plastic waste.

  5. Determine the equipment and utilities needed to start a plastic recycling business.

  6. There are various types of plastic waste; therefore, decide which plastic waste you will recycle.

  7. Evaluate what the profit margin in plastic recycling will be.

  8. Make sure you conduct extensive studies on the return on investment.

Create a complete project report on sourcing, financing, location, internet retailers, advertising, branding, marketing, and revenue streams.

Also Read: Small Scale Business Ideas with Low Investment

3. Register your company with the state

For starting a plastic recycling plant, contact the state secretary's office and register your company name in the state where you plan to operate. You can register your business by submitting the necessary documents.

4. Identify the location and obtain a licence

Now that you have set your goal of starting a plastic recycling business, it's time to choose a place. You must select an ideal location for your firm to be established. Ideally, a warehouse, firm, or plant with enough room to accommodate your equipment and machinery, or an industrial area or government land not in a congested neighbourhood will be suitable locations. You'll be able to link with additional businesses, making sales easier, and you'll have a steady supply of electricity, water, and transportation to keep your recycling operation running efficiently.

5. Invest in the Recycling Equipment 

After you've obtained the papers, you may begin investing in plastic recycling equipment such as separators, shredders, sack stitcher, breakers, a pre-washing system, granule makers, a rinse system, and dryers.  The selection of machinery and equipment is critical to make the entire operation run smoothly and enhance production. The total cost of equipment and machinery is estimated to be around 25 lakhs, which can be paid off with a loan or an EMI.

6. Promote your Business 

Once you've put everything in place and your firm is up and running, you'll need to market it to potential customers. It is critical to market your business, and promoting a firm like this would necessitate assistance from local non-governmental organisations and volunteers. Plastic recycling business promotion can be done both online and offline. To raise awareness, you can construct a website, print brochures, and distribute them. Putting it on all of the social media platforms would also help encourage others to participate

Why is plastic recycling important?

  • As previously stated, plastic accounts for a significant portion of our solid waste, and massive volumes of plastic are discarded, harmful to the environment and human health. 
  • Because plastic is difficult to break down, it disrupts the land and ocean ecosystem. 
  • Recycling plastics is also significant since it can be used to manufacture new products.
  • Continuous plastic production can be hazardous,  every plastic you don't recycle, another is made in its place.
  • Constant plastic production generates a considerable amount of greenhouse gas, which disrupts the normal cycle of our ecosystem, increasing ailments and natural disasters.
  • It is estimated that recycling saves 7 yards of space for every tonne of plastic recycled. This is crucial, especially given the fact that landfill space is rapidly running out.
  • Recycling plastic saves 80% of the total energy used in the production of new plastic materials. Plastic production necessitates the use of petroleum & other fossil fuels. These fuels are rare, but the method of manufacturing plastic is also hazardous to the environment. We can help the environment while reducing the quantity of plastic produced by recycling.
  • Human needs are unlimited, and the majority of these needs incorporate plastic use. This implies that we are using more resources from the earth than feasible. Recycling plastic reduces the amount of stress we put on the raw materials used to make plastic.
  • Because the recycling process is extensive and requires a workforce, recycling plastics can create employment opportunities.

The importance of plastic recycling cannot be overstated. Plastics account for a significant portion of solid waste and take decades to decompose in landfills or the ocean.

Plastic recycling process

Now that we've learned how to establish a plastic recycling business and why it's important to recycle plastic, let's move on to the next step. Let's have a look at how plastic is recycled. Recycling plastic has vastly improved in recent years and may be divided into five distinct stages.

  • Stage 1:  Collecting 

The gathering of post-consumer materials from homes, malls, schools, businesses, institutions, and other locations is the initial step in the recycling process. A municipal government collects this recycling either directly or through a waste disposal contractor. Recycling centres are another method of collection, where the trash disposal contractor collects the material and puts it in a Plastic Recovery Facility. The plastic collection is essential for the recycling system to function properly. The more recyclable plastic collected, the more product can be recycled and repurposed into new goods.

  • Stage 2: Sorting

After the collection procedure is completed, the collected plastic must be sorted. Because not all plastic can be recycled, it is critical to separate recyclable plastic from non-recyclable plastic. Other factors such as colour, thickness, and application must also be considered when sorting plastics. Sorting takes place in the Material Recovery Facility. This debris may then be sent to a Plastics Recovery Facility (PRF) for further sorting into various plastic types.

Various techniques are used to sort the plastic, such as Manual picking, trommels, old corrugated cardboard screening, Ballistic Separator, Magnet Separator, Optic Sorting Machine, Sink-float Separator and so on.

  • Stage 3: Cleaning

Cleaning is an essential stage in the plastic recycling process because it removes contaminants that might hinder or damage a batch of recycled plastic. Cleaning makes the rest of the procedure go more smoothly. Impurities such as product labels, adhesives, debris, food residue are typically targeted in this stage.

  • Stage 4: Shredding

Shredding or grinding plastic into tiny flakes is an important step in the recycling process. Based on the shredder's classification and procedures, the plastic is shredded in various ways. Any leftover contaminants can be cleaned by breaking down the plastic into tiny pieces. Before choosing the plastic to make new products, these plastic components are evaluated for class and quality.

  • Stage 5: Extruding

The shredded plastic particles are turned into a viable product for manufacturers in this final plastic recycling process. Extrusion is the technique of melting plastic and pressing it through a machine called an extruder. After the shredded plastic has been melted into pellets, it's sold to manufacturers.

Different types of recycling

All recyclables are divided into three categories: primary, secondary, and tertiary.

  • Primary Recycling

A recyclable product can be reused in its original state in primary recycling.

E.g., Donated toys to charities, friends, and family

Electronics can be repurposed in another part of your company, sold to recoup some costs, or donated.

  • Secondary Recycling

Under secondary recycling, the products are utilised without being reprocessed.

E.g., Reuse of plastic, metals, wood to do any DIY project.

  • Tertiary Recycling

Tertiary recycling entails modifying items or materials chemically to make them reusable. Both types of internal or external tertiary recycling is possible.

Also Read: Different Types of Industries- Primary, Secondary & Tertiary


If you regard yourself to be environmentally responsible, you should be aware of the significance of the plastic recycling industry.  You should not be hesitant to start a plastic recycling business because it has a secure and promising future. Supply is abundant, and the market is likewise enormous. If you start a plastic recycling business in India,  download the Khatabook app to make your business transactions easier.


Q: Can I start a plastic recycling plant in Kerala?


Yes, if carried out with the correct business strategy, plastic recycling plants in Kerala may be quite profitable.

Q: How much does the plastic recycling plant cost India?


India's plastic recycling plant cost can range anywhere between INR 7 lakhs to 10 lakhs.

Q: How much does a pet bottle recycling plant cost in India?


The pet bottle recycling plant cost in India might range from INR 20 lakhs to 35 lakhs.

Q: What is the small scale plastic recycling plant cost in India?


The manufacturing setup can cost anywhere between INR 5 and 10 lakhs, with machinery ranging from 3.5 lakhs to 35 lakhs and beyond.

Q: What does the pet bottle recycling business plan include?


A pet bottle recycling business plan includes an overview of the industry, a list of the companies products and services, a mission and vision statement, a SWOT analysis, and other crucial information regarding the industry.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.