Ever considered processing the used plastic and converting into useful material? If not until now, think now for setting up plastic recycling plant as bankable opportunity.
As per the studies and research conducted by the Council of Scientific and Industrial Research of National Chemical Laboratory, the reports presented an optimistic future of plastic recycling business in India. In certain parameters of plastic recycling business, India is outperforming many countries that are ahead of India like European countries, US and Japan.
India is treading towards excelling the art of plastic recycling business. Let me state some facts about plastic recycling business in India. According to accredited reports, it has been reported that annually there are around 900 kilogram tons of plastic called polyethylene terephthalate is manufactured in India.
Polyethylene terephthalate is the type of plastic that is used in the manufacturing of drinking water bottle, juice bottles and container packaging plastic material. 900 kilogram tons accounts for 100% of polyethylene terephthalate produced.
Out of this 100% of plastic, around 65% of the plastic is recycled through the organized channels of plastic recycling manufacturing plant. Out of the remaining 35%, 15% of the plastic recycling happens through unorganized or recorder channels of plastic recycling plant and the remaining 10% is put to reuse by the households.
The unaccounted 10% ends up in landfills. India is making tremendous progress in plastic recycling business. One can think of investing in this particular business because it is presenting itself as a money spinner business idea that can surely take you places.
The profit margin in this business is substantially high. The rising bracket of profit margin owing to the mass recycling operations acted as a magnet in dragging or pulling business entrepreneurs towards it.
For an entrepreneur, profits matters the most and since the profits are derived from this business, so this business is ranking at the top most of investment destinations. Few of the other reasons behind the spurring success of it is that it is contributing towards making our environment a livable place.
The entrepreneurs who are involved in this business gets the benefits of backing of government and the government launches various schemes and slew of incentives to encourage aspiring business entrepreneurs to take this business up. The dedicated efforts of Government towards trying every possible means to contribute towards making our environment pollution free, clean, hygienic, healthy and sustainable place for our many future generations to come. Plastic pose great damage to the environment.
The plastic that is discarded after use in the form of water bottles, drinking water packets, containers, polythene, plastic bags, boxes, sheets are disposed of on the land, from land a significant chunk of plastic percentage travels through various sources and dumped into the sea where it terribly destroys the marine ecosystem, various specifies eat such plastic, dies off and impact fish production significantly.
Humans are responsible for the mess that they have created by disposing of billion metric tons of plastic since the time of its inception. One has rightly said it is the kids that has to bear the brunt of their parents.
It is past generations plus the current generation that are involved in creating hazardous situations for the environment and for future generations. Growing consciousness among people and growing government responsible attitude and its commitments at the various International forums such as Paris Climate Agreement, international Solar Alliance, its promises in the form of agreements to reduce its fuel emission and opting for other renewable sources of energy, etc., all these factors have given a boost to the industry and led to the mushrooming of plastic recycling plants in India.
You are well aware of the principle of 3R. It refers to reduce, reuse and recycle. It mandates for the reduction of waste that is produced, reuse the items that can be put to reuse before dumping it into the bin, recycling involves breaking down and using the small products that are obtained from it. We are going to look deeper into plastic recycling business in India.
If you are thinking of taking this business up as a career choice, then you need to have prior knowledge about how they operate, what is the functioning and how much is the capital involved. Looking at the magnitude of the business scope, don’t think it to be only a rich man’s game.
You don’t necessarily have to be engaged in large plastic recycling plant business but you can start your business with small plastic recycling plant. Before building dreams, do look at how much small plastic recycling plant cost in India. Don’t worry about it, I will guide you through.
Conduct feasibility studies and chalk out the business plan
Before you jump into the plastic recycling business, it is better that you prepare a well thought out plan, know what are the key aspects that you need to look into before entering in this unknown territory. There are the following things that you need to think about. These include what type of plastic you are going to recycle.
Know well in advance how that plastic is recycled. Another thing is the scale of operation, are you going to operate on large scale, medium scale or a small plastic recycling plant. After considering the scale of operation, now calculate upon the total investment that is needed to know the plastic recycling plant cost in India.
Think about the machinery and raw material procurement. After all these things, now comes the requirement of collection of plastic, consider your targeted market of recycled products, calculate the profit margins and the total returns that you are earning from the investment you have made. Do remember one thing, as a business entrepreneur your investment should always reap you returns. The expenditure that you have should always be less than your revenues and your long term objective should be maximizing those profits.
Preparing a feasibility report is of utmost important. After preparing the reports, you are well acquainted with various stages of setting up plastic recycling business in India. The feasibility report tells you whether the business is practically and economically viable. It will give up a rough idea of what your business investments and returns of investment be like.
Basic requirement of setting up plastic recycling plant
It is the first thing that you need at hand that is a space to operate from. The space where you are going to operate should have enough space to accommodate all the machinery, equipment, articles of utility, collected waste product, enough area for the storage and packaging of the recycled end product and a small office space from where you can coordinate from. You have to ensure that you the place have proper access of electricity and water supply availability. These are the basic necessary requirements. You also need to think about the situations where you have to face electricity cuts.
Without procuring a legal permit, you just can operate. Get your plastic recycling business in India, registered with ROC. Obtain trade license from the municipal authorities and pollution control board, get certification from fire authorities to ensure that your business comply with all safety measures.
Procurement of machinery and raw material
Firstly, you need to have information about what type of machinery is required, after knowing that do the market research to know the which dealer is providing the machinery of good quality, at good prices and additional services benefits. Seal the deal with the one that is offering the best prices and service benefits so that you can rely on them during the times of emergency for technical support.
Purchase of machinery also depends on the scale of operation. At what scale you are operating, is it small or big or medium. Depending upon the scalability the prices of the machinery will tend to fluctuate.
Sourcing the plastic waste
Next up is sourcing the plastic waste for recycling. For procuring plastic waste in adequate amount, you need to contact multiple plastic waste suppliers to ensure continuous plastic waste supply. After the collection of the plastic material now what you have to do is separating the plastics, there are different type of plastic material as we are talking here about the polyethylene terephthalate so you will sort out the this plastic material.
Now the plastic is supplied to the recycling plant unit. After the proper availability of raw material at the plastic recycling plant, you can initiate the recycling process. For carrying out all the plastic recycling processes, it is important to have a technician who possess the practical knowledge of carrying out recycling process efficiently and how to operate various machines. Technicians play a crucial role in saving a lot of cost if you are a beginner.
I am not suggesting you to employ all time technicians permanently but for a limited time period. Hire him till the time you feel him to be useful for the business but after learning all the crucial aspect of it you can lead the process. This is will proved to be an efficient way of working. Now, we will talk about the various task involved in the plastic recycling business.
The process of recycling involves compressing and shrinking, after the plastic material is compressed, it undergoes melting process. Now what you get is the plastic material in the liquid form. The technique of converted the plastic into this liquid form is done so as to cause the least amount of pollution in the environment.
This plastic liquid is then filtered to remove unwanted dirt and residue. The plastic liquid which is of high quality is stored. Then this liquid is shaped into pellets or brick shape. That is left to cool down by bathing it out in the cold water. After it is completely cool down then it is dried and put it in the dry container. Now your recycled product is ready to be delivered to the targeted customers.
Who are your targeted customers?
You might be wondering as to who is the potential buyer of your recycled plastic, when there is already plastic available in the market. The reason behind people opting for recycled plastic is because the recycled plastic is available at a lower price as compared to the normal plastic which is quite costly.
Depending on the quality of recycled plastic, the market of your potential customer is determined. The plastic that is recycled once is used in manufacturing of high quality plastic product, then the plastic that is recycled second or third time, it is used for manufacturing of plastic bottles.
The customer for the low quality recycled plastic is the road department that they can use in the construction of road along with bitumen. There are many examples where the road department have constructed the road with the use of recycled plastic. By contacting the other business that are engaged in making plastic products, you can provide the sampling of your product. If you are offering a good quality recycled plastic at a reasonable rate then there is no customer that can say no to your product.
Initially, as you get started with your plastic recycling plant, it is difficult to get huge profits in the beginning. As the huge investment is already being made in setting up the plastic recycling plant. You can finance your investment by taking the loan. You began to increase your profit when one manages to reduce their investment cost. Or to increase your profit, one can also start business of manufacturing new products from recycled plastic. You can engage in the production of plastic products like polythene bags, plastic bottles, plastic boxes, plastic containers, plastic plates, plastic spoons and forks and the list continues to go on and on.
The market is huge for the finished recycled products. Such items are priced at low prices in comparison to the fresh plastic made products. Since the prices are lower than other similar products in the market that is the reason why it enjoys benefits of higher demand from the customers. Also the recycled plastic made products are highly durable that’s partly the reason why people prefer buying these products.