With rising awareness around sustainability and the government’s push towards a circular economy, the plastic recycling business is gaining momentum in India. It not only supports environmental protection but also offers high-profit potential with moderate investment.
Why Plastic Recycling Business?
- Massive availability of waste plastic
- Government support (subsidies, MSME registration, startup schemes)
- High demand for recycled plastic granules in packaging, furniture, and textile industries
- Growing bans on single-use plastic increase demand for reusable alternatives
Types of Plastic You Can Recycle
| Type | Example Products |
|---|---|
| PET (Polyethylene Terephthalate) | Water bottles, containers |
| HDPE (High-Density Polyethylene) | Shampoo bottles, buckets |
| LDPE (Low-Density Polyethylene) | Plastic bags, film wraps |
| PP (Polypropylene) | Tiffin boxes, bottle caps |
| PVC (Polyvinyl Chloride) | Pipes, medical equipment (needs license) |
Plant Setup & Infrastructure
- Area Required: 1000–2000 sq. ft. (rent or own)
- Electricity Load: 25–50 HP (depending on machine size)
- Manpower: 5–8 workers (for 1 shift)
- License Required:
- Udyam (MSME) Registration
- Pollution NOC from SPCB
- Factory License
- GST Registration
Machinery Required for Plastic Recycling Plant
| Machine | Function | Cost Estimate |
|---|---|---|
| Plastic Shredder/Crusher | Breaks plastic into small pieces | ₹2 – ₹4 lakhs |
| Washer/Hot Water Tank | Cleans the plastic pieces | ₹1 – ₹1.5 lakhs |
| Dryer Machine | Dries plastic flakes after washing | ₹80,000 – ₹1.2 lakhs |
| Extruder Machine | Melts and converts flakes to strands | ₹3 – ₹5 lakhs |
| Pelletizer/Granulator | Cuts strands into uniform granules | ₹1.5 – ₹3 lakhs |
| Cooling Tank | Cools the strands | ₹50,000 – ₹1 lakh |
| Mixing Machine (Optional) | Mixes recycled granules for quality | ₹50,000 – ₹1 lakh |
Total Investment Required
| Component | Cost Estimate |
|---|---|
| Machines & Equipment | ₹10 – ₹15 lakhs |
| Shed/Rent/Factory Setup | ₹3 – ₹5 lakhs |
| Working Capital (1st 3 months) | ₹3 – ₹5 lakhs |
| Licensing, Setup, Transport | ₹1 – ₹2 lakhs |
👉 Total Investment: ₹15 – ₹25 lakhs (for small plant)
Monthly Income & Expenses
Monthly Expenses:
| Expense | Estimate |
|---|---|
| Raw Plastic Waste (5000 kg @ ₹20/kg) | ₹1,00,000 |
| Labour (5–8 people) | ₹80,000 – ₹1,00,000 |
| Electricity | ₹25,000 – ₹40,000 |
| Maintenance & Misc. | ₹10,000 – ₹15,000 |
🔸 Total Monthly Expenses: ₹2.2 – ₹2.5 lakhs
Monthly Income:
- You can produce ~4500 kg of recycled plastic granules per month
- Market Rate of Granules: ₹40 – ₹60 per kg
| Sales @ ₹45/kg | ₹2,00,000+ |
| Sales @ ₹60/kg | ₹2,70,000+ |
✅ Average Monthly Profit: ₹60,000 – ₹1.2 lakhs
📈 ROI (Return on Investment): 12 – 18 months
Where to Sell?
- Plastic product manufacturers
- Traders in B2B marketplaces (like IndiaMART, TradeIndia)
- Local packaging and textile industries
- Export opportunities (through EPCG license or third-party exporters)
Government Support & Subsidy
- PMEGP Loan Scheme (Up to ₹25 lakh, 15–35% subsidy)
- Mudra Yojana (for working capital needs)
- MSME Credit Linked Capital Subsidy Scheme
Visit msme.gov.in or contact your District Industries Centre (DIC) for application.
Summary – Quick View
| Factor | Detail |
|---|---|
| Business Type | Small-scale plastic granule manufacturing |
| Investment | ₹15 – ₹25 lakhs |
| ROI | 1–1.5 years |
| Monthly Profit | ₹60K – ₹1.2 lakh |
| Market Demand | High and growing |
| Govt Support | Available under MSME & PMEGP |
Conclusion
The plastic recycling business is a great opportunity for entrepreneurs looking for an eco-friendly and profitable venture. With growing environmental concerns, recycled plastic will only increase in demand in sectors like packaging, manufacturing, and construction.
If you are serious, start small, keep quality consistent, and reinvest profits into expanding your capacity over time.
Leave a Reply