Plastic is everywhere. We use plastic bags, bottles, food packets, toys, and many daily-use items. After use, most plastic becomes waste. This plastic waste creates big problems for the environment, animals, and human health.
But there is good news. Plastic waste can be recycled and reused. This is why starting a Plastic Waste Recycling Unit in India is not only a good business idea but also a great way to protect nature.
We will explain how to start a plastic waste recycling unit in India, what licenses you need, how much it costs, and the complete process.
What Is a Plastic Waste Recycling Unit?
A plastic waste recycling unit is a small or large factory where waste plastic is collected, cleaned, processed, and converted into useful products like:
- Plastic granules
- Plastic sheets
- Recycled containers
- Industrial plastic parts
These recycled products are then sold to plastic manufacturers.
Why Start a Plastic Waste Recycling Unit in India?
India produces millions of tons of plastic waste every year. Recycling this waste has many benefits:
- Reduces pollution
- Saves natural resources
- Creates jobs
- Supports government “Swachh Bharat” and recycling goals
- Profitable long-term business
That is why many people are planning to Start a Plastic Waste Recycling Unit today.
Types of Plastic Recycling Units
Before starting, you should know the common types of recycling units:
1. Plastic Granule Manufacturing Unit
Waste plastic is converted into small granules used by industries.
2. Plastic Shredding Unit
Plastic waste is cut into small pieces for further recycling.
3. PET Bottle Recycling Unit
Used plastic bottles are cleaned and recycled.
4. Plastic Scrap Processing Unit
Mixed plastic scrap is processed and sorted.
Step-by-Step Process to Start a Plastic Waste Recycling Unit
Step 1: Business Planning
First, make a simple business plan that includes:
- Type of plastic to recycle
- Production capacity
- Location of the unit
- Investment budget
- Raw material sources
Good planning helps avoid future problems.
Step 2: Choose the Right Location
Your recycling unit should be:
- In an industrial area
- Away from residential colonies
- Well connected by road
- Approved for industrial use
Land can be owned or rented.
Step 3: Company Registration
You must register your business as:
- Proprietorship
- Partnership
- LLP
- Private Limited Company
Also apply for:
- PAN Card
- GST Registration
- MSME (Udyam) Registration
Licenses & Approvals Required
Licenses are the most important part of starting a recycling unit.
1. Pollution Control Board Authorization
You must take approval from the State Pollution Control Board (SPCB):
- Consent to Establish (CTE)
- Consent to Operate (CTO)
- Plastic Waste Recycling Business
Without this, your unit cannot run legally.
2. Factory License
If you use machines and labor, a factory license is required under the Factory Act.
3. Trade License
This license is issued by the local municipal authority.
4. Fire Safety NOC
Fire safety approval is needed to protect workers and property.
Online ROHS Certification – Is It Required?
If your recycled plastic is used in electrical or electronic products, then Online ROHS Certification becomes important.
ROHS (Restriction of Hazardous Substances) ensures that harmful chemicals like lead and mercury are not used.
Online ROHS Certification helps in:
- Selling products to electronic manufacturers
- Exporting plastic components
- Following environmental safety rules
Machinery Required for Plastic Recycling Unit
Some common machines include:
- Plastic shredder machine
- Washing machine
- Dryer machine
- Extruder machine
- Pelletizer
Machine cost depends on capacity and quality.
Cost to Start a Plastic Waste Recycling Unit in India
The total cost depends on scale.
Small-Scale Unit
- Investment: ₹10–20 lakhs
- Area: 2,000–3,000 sq. ft.
Medium-Scale Unit
- Investment: ₹25–50 lakhs
- Area: 5,000–10,000 sq. ft.
Large-Scale Unit
- Investment: ₹1 crore or more
Costs include:
- Land or rent
- Machinery
- Licenses & approvals
- Labor
- Electricity & water
Raw Material for Plastic Recycling
Raw material is waste plastic, which you can get from:
- Scrap dealers
- Municipal corporations
- Industrial waste suppliers
- Waste collection agencies
Role of Vehicle Scrapping Facility Authorisation
Sometimes plastic scrap also comes from old vehicles. If your business is connected with automobile waste, then Vehicle Scrapping Facility Authorisation is important.
This authorization allows legal handling and recycling of plastic parts from scrapped vehicles such as:
- Dashboards
- Bumpers
- Interior plastic parts
Registration Process for Scrap Battery Import
Some recycling businesses also deal with battery waste. If you plan to import used batteries, you must follow the registration process for scrap battery import.
This process includes:
- DGFT registration
- CPCB approval
- Battery Waste Management Rules 2022 authorization
- Import documentation
Following this process avoids heavy penalties.
Manpower Required
A basic recycling unit needs:
- Machine operators
- Helpers
- Supervisor
- Accountant
- Compliance consultant
Environmental & Safety Measures
To run smoothly, follow these safety steps:
- Proper waste storage
- Effluent treatment system
- Dust control measures
- Worker safety equipment
This keeps your unit safe and legal.
Profit Margin in Plastic Recycling Business
Plastic recycling is a high-demand business. Profit depends on:
- Quality of recycled plastic
- Market demand
- Operating cost
Average profit margin ranges between 15% to 30%.
Challenges in Plastic Recycling Business
Some common challenges are:
- Price fluctuation of scrap
- Strict pollution norms
- Power and water consumption
But with proper planning, these can be managed.
Future of Plastic Recycling in India
The future is bright because:
- Government supports recycling
- Ban on single-use plastic
- Growing environmental awareness
This makes it a long-term sustainable business.
Frequently Asked Questions (FAQs)
Q1. Is plastic recycling business legal in India?
Yes, it is legal with proper Pollution Control Board authorization.
Q2. How long does it take to get approvals?
It usually takes 2 to 4 months.
Q3. Is Online ROHS Certification mandatory?
It is required if recycled plastic is used in electrical or electronic products.
Q4. Can I start a small recycling unit?
Yes, you can start with small investment and expand later.
Q5. Is Vehicle Scrapping Facility Authorisation compulsory?
It is required if you deal with vehicle plastic waste.
Conclusion
Starting a plastic waste recycling unit in India is a smart and responsible business decision. It helps reduce pollution, saves resources, and creates income opportunities.
With proper planning, licenses, and environmental care, anyone can Start a Plastic Waste Recycling Unit successfully.
Author Profile
Upendra Sharma
Environmental Compliance & Recycling Business Consultant
Upendra Sharma is an experienced professional in environmental laws, waste management, and recycling business setup in India. He has helped many industries with Pollution Control Board approvals, Online ROHS Certification, Vehicle Scrapping Facility Authorisation, and the registration process for scrap battery import. His goal is to promote legal, eco-friendly, and sustainable businesses across India.
