How to Start a Plastic Recycling Plant

 

With the increasing awareness of the harmful effects of plastic on the environment, people are looking to switch to more sustainable options in all areas of life. Ecological awareness is promoted by all arenas of society, be it governance, education, corporate or art. As a result of the activism that people have been undertaking to care better for the environment and the extensive research that has gone into environmental destruction in recent years, new laws that are designed to protect the environment are in place. One of the biggest emphases of these laws was on the harmful reverberations of using single-use plastic. Not only does it create enormous amounts of waste, these waste materials are also significantly much more difficult to dispose of than others. As a result, people are now expected to comply with rules that ask them to switch to better alternatives. This is where plastic recycling come into the picture. In recent years, plastic recycling has become more and more popular among the people as a result of the increasing ecological awareness. It leaves people feeling satisfied and fulfilled in their duties as responsible citizens. Therefore, if you’re thinking about starting a venture into recycling plastic, rest assured that you will find a good return on your investment, which will help you secure the profits you deserve, while also contributing to the betterment of society. Detailed below are the steps that are essential to starting a cloth bag business. 

 

• Market research 

If you are new to the field, then the first step is your homework – do the necessary research. Of course you can also hire people to do the research and planning for you, but nothing can replace the effect that your own personal research can have on the outcome of your business. There are all kinds of sources from which you can get the information you need. Remember that in conducting market research, the internet is your best friend. You can analyze the plans followed by other ventures into this field, and understand what works for them. This can help you formulate your own plans suited to the vision of your business and help you make informed decisions in all areas of the venture. 

 

• Raw material

 

The raw materials you will need for this venture will cost you close to nothing: used plastic. There are different sources from which you can procure the plastic you need. We recommend you to establish good contacts with cleaners, municipality workers and kabadiwalas who can help you secure the raw materials you need. In this case, the only money you will need to spend will be the wages for those who collect the plastic for you.

 

• Location

 

The location of your enterprise can be crucial to the future functioning of your business. Therefore, you must spend adequate time thinking about the location of your start-up. Starting in an industrial area or an area secluded from the business of the city is recommended. Rent for a plant in an industrial area will come to around 20000 INR per month. Industrial areas are a good place because they enable your business to be in easier contact with other ventures that might need your product in their manufacturing process. Make sure that the enterprise has continuous supply of electricity, reliable source of clean water and adequate access to transportation.

 

• Legal requirements 

To begin your venture, you must first register your business. You can structure your business in the way that best suits your needs and goals with the venture. You can either start a sole proprietorship or a partnership. Or you can opt for LLP, Pvt. Ltd. or Ltd Company. 

You will also need additional licenses that differ from state to state. Some of the common licenses are Trade license, SSI unit registration, ISO certification, IEC code registrations and NOC from State PCB. Procuring licenses can cost around 5000 INR.

 

• Machinery requirement

 

You will need a variety of equipments at the beginning of your venture to make your entry into the industry. Make sure that you invest in good quality equipments right at the beginning so that you can save considerable costs on maintenance later on. These equipments are meant to last you a long time, so plan effectively. Equipments can cost you around 20 lakh INR. Some of the equipments you will need will include grinder, anglo, granule maker, weighing machine, packaging equipments, etc.

 

• Employees

 

You will need a number of employees in your business to operate the machines effectively and to manage the venture efficiently. The employee requirement can differ depending on the size of your venture but on an average you will need around 10 employees. Expect to pay around 10000 INR in salary per employee. 

 

• Arrange for insurance

 

When you begin a business venture, all kinds of risks can be expected along the way. Since you invest so much of your money, time and energy into the venture, it is highly recommended to get insurance. It will cost you around 1 lakh INR. 

 

Here is a breakdown of the costs you can expect to incur in starting your venture:

Machinery and Equipments: 20 lakh INR

Building:  20000 per month

Miscellaneous assets: 5 lakh INR

Wages (per worker): 10000 INR

Electricity and other expenses: 600 INR

 

Here’s a simple checklist to ensure you get everything right:

 

• Structure: Sole Proprietorship, Partnership, LLP, Pvt. Ltd. or Ltd Company.

• Licenses: Trade license, SSI unit registration, ISO certification, IEC code registrations and NOC from State PCB.

• Raw materials: Used plastic

• Machinery: Cement block making machine, mixer machine, tipper barrow, ram mould for cavity blocks, miscellaneous items like shovels, mason’s tools, mortar pan, vibrator, dye sets.