Small Scale Plastic Recycling Business Ideas In India- 10 Step Guide

Plastic is a non-degradable substance. As you already know that plastic cannot be decomposed by natural means yet can be recycled. Surrounding is solely covered by plastic and if you recount that how many things you have used today you can easily discover plenty of things made of plastic around. There are plenty of products which you utilize in your daily lives such as plastic bottles, toothbrush, vessel, bucket, tub, containers, polythene bags, and many more. The usage of plastic has increased enormously within recent times and you are surrounded by it everywhere. Plastic is a toxic substance and creates pollution. Recycling of plastic bottles products provides you with a great business opportunity and can also contribute to creating a clean and healthy environment.

Plastic recycling business ideas are one of the most profitable businesses if planned and executed properly. If you are seeking the proper information on how to recycle plastics in your own small scale plastic recycling plant this then this is the perfect article for you.

With an increase in demand, 8.3 billion metric tons of plastic have been generated currently. Generally, most of the plastic products become trash after one use and so the estimated waste generates of plastic is around 6.3 billion metric tons and 10-15% of the total production of plastic waste is recycled.


Let’s understand how to run Plastic recycling plant:

Recycle, Reuse, And Reduce:

  • 3R is the most influential and well-explained plastic waste control formula. The most prominent way to save the environment to recycle it and reuse the products.
  • The recycling rate of plastic waste has been increasing with awareness. Earlier it was used as the method to control pollution but now it has turned out to be a full-fledged business.
  • The demand for recycling business modal is increasing day by day where plastic wastes like plastic bottles, polythene, polybag, plastic containers, crates, packets, sheets, and their likes are recycled into beneficial products.

Plastic Waste Recycle Plant:

  • You need to plan and strategize before starting a business especially when you are willing to establish any plant. There are some measures and you need to take care of before starting a small scale plastic recycling plant. 
  • Let’s understand the whole strategy of opening a plastic waste recycling plant. You need to analyze and understand the requirements to establish the Plastic Waste Recycle Plant:

Essentials for Opening a Plastic Waste Recycle Plant:

  1. The first and foremost thing you need to establish the plant is a suitable location. You require a good space to store waste and waste products apart from equipment and utilities.
  2. Then you need to establish your factory and you require a closed space similar to a factory but a small-sized pad can also work at least about 200 sq. feet of size.
  3. You require recycling machinery and equipment to recycle your plastic waste.
  4. And last but not least your raw material means plastic waste that needs to be recycled. You need to build a network of plastic waste suppliers that can supply the ordered volume of plastic waste.

Area Requirement and Factory:

  • The area to be required to establish the plant depends on at what scale your plant wants to operate.
  • Willing to establish a small scale recycling plant 50 sq. feet small pad will work but if you are willing to go for large scale recycling then you must require at least 200 to 500 sq. feet of land is required for the recycling process.
  • Some aspects you need to take care of before finalizing the location such as shades, enclosed space, spacious rooms, and the technical extent and much more.
  • You require a clean and closed space to place your recycling machine. Keep in mind that you need a ventilated area and don’t get suffocated.
  • You require a large space to dump plastic waste and need clean space to keep the recycled product.

Basic utilities required to operate the plant:

  • There are some basic utilities you require to run your factory properly. Electric connection is the most essential one to operate machinery.
  • Your demand for utilization of power may vary so chose as per the requirement. The next essential is the proper water supply, you need to take care of that as well.
  • You can go for some emergency utilities as well such as a generator, water tanks and much more.
  • The other utilities include recycling parts, small tools, machines, compressors, furniture, and so on.

Machinery and equipment for Recycling Plastic Waste:

  • You need proper machinery to convert the plastic waste into a recycled product. There is a process involved to take the procedure forward you need to first compress and then melt the plastic using the machine.
  • Then it’s shaped in the small form then cooled down using cold water. The machine comes in various for this procedure.
  • Fully automatic with all in feature machines are available as well as some come in part. It also depends on what type of plastic you need to recycle and at what scale you are recycling, you need to buy machinery as per your requirement.
  • It also depends on the rate of machines you find affordable as per your investment. You can go for a small scale machine but a large scale machine is much preferable as it has various features.

The method required in the recycling of plastic waste:

  • Firstly, Collecting plastic waste and dumping at the factory.
  • Arranging and separating the plastic waste such as PVC, ABS, LD, etc
  • Grinding the waste to convert into small pieces.
  • If you want you can supply these plastics raw material to the recycling unit
  • Start the recycling process 
  • Compress and melt the raw materials obtained after grinding process to take the process forward
  • Structure of pellets
  • Production of new products like a chair, table, bottle, mug, cans, etc.

After the whole factory with all utilities been setup. Gather plastic waste and start the recycling process. The two major major steps are is compressing and melting down of plastic into a liquid for recycling. This process should be done in a way that generates the least pollution. 

It also includes filtering the waste residue to remove and pass the liquid of higher quality. Now you need to shape up of the liquid plastic. Shaped in small brick-shaped or pellet-shaped and then cooled down in cold water and are later poured into a dry container.

Technician and Labors:

  • You require a proper technician and laborers to complete the process of recycling. Get well-trained staff including technician who knows how to work with machines and recycle plastic.
  • You can also hire the technician for a while if you are willing to save your cost and get the essential knowledge from him and then operate the plant by yourself.
  • Hire the staff including labors based on your requirement to run the plant.

Cost Involved in Setting up of plastic recycling plant:

 The cost in setting up the plastic recycling plant involves all machines and equipment specified foregoing. 

  • Land Cost- The cost of land depends on the choice of location. You can try to establish your plant at outskirts of the city in order to save the costing. But keep in mind you get proper facilities wherever you purchase the land. 
  • Factory Cost- The factory setup can cost Rs 5 to 10 lakhs or above totally depending on your choice. 
  • Machinery Cost- The machinery and setting up of machine can easily costs from Rs 3.5 lakhs to 35 lakhs and beyond. Do not hesitate to invest in buying the machinery as the whole functions of the factory will be executed on the basis of machinery.
  • Other utilities Cost– Other utilities such as spare parts, bills, etc. will come around 1-2 lakhs per month. The cost of labor and technician is also included in utilities. There are many miscellaneous requirements that demand money such as to purchase plastic waste, though around 20-30 thousand rupees per month is enough still you need to be prepared.
  • Marketing and Other costs– You need to spend in the advertisement, transportation, finishing, packing and manufacturing etc. You require a total investment of 10-25 lakh rupees at the initial stage with a monthly expense of Rs 1-2 lakhs.

 Plastic waste collection for recycling:

  • You can choose to create a network with scrap pickers or plastic waste collection houses which you can find in bulk all over. Creating a network with them can make an easy supply of the required amount of plastic waste.
  • Many suppliers supply plastic waste to your plant while in some instances you need to transport.
  • Do not forget to make sure that the supplier practices a plastic waste compressor in order to reduce the cost involved in shipping or it can increase the cost requirement.

Choose the kind of plastic you need to recycle

  • Chose the plastic you are willing to recycle. Initially, you can start with a small recycling plant that recycles plastic bottles, plastic sheets, polybags, small plastic containers, and other stuff alike.
  • If you are willing to expand your business you can also add PVC pipes, sheets, plastic tanks, and many more.
  • Remember that it involves different kinds of machine and processes to recycle different types of plastic so go for the one that gives maximum returns.

Targeted Market for Recycled Plastic Waste:

  • The market for recycled plastic is enormous and has a lot of scopes as the primary non-recycled plastic is definitely costlier than the recycled one. 
  • Though it is the fact that the recycled plastic lacks quality in comparison to the original fresh plastic but is widely used. 
  • The market solely depends on what kind of plastic is used and the number of time the recycling of plastic has been done.
  • Generally, in manufacturing high-quality plastic items involve the first time recycled plastic where the 2-3 times recycled plastics can be utilized to manufacture plastic bottles.
  • The recycled plastic is used in manufacturing use and throw plastic bottles, polythene, one-time-use containers, boxes and more holds the lowest quality.
  • You can also sell the lowest grade to road departments that utilize molten plastic in the place of bitumen to construct roadways. Molten plastic is similar to tar and is durable than bitumen. 

Seek and create an influential market that can help you in generating income and also provide different rates for your recycled plastic. If that much is not enough you can also sell it to plastic product production companies, polybag makers, road transport authority and many other firms who works for recycling plastic waste.

Profit Margin And Return

  • Initially, you cannot expect much return as compared to your investment. You can try for the loan, funding, and sponsors, you can also manage to reduce investment in factory setup and with the time and dedication, you start expecting returns
  • . Within a few months, the business gets established and you can get a significant return by selling recycled plastic.
  • You can also start manufacturing basic plastic products like poly bags, small use, and throw plastic products, mugs, bottles, and so on.
  • This involves a humongous market and as informed earlier, you can get in contact with the road department to take the recycled plastic of the lowest order to build the road as it may provide you satisfying returns.


Small scale plastic recycling plants is one of the most flourishing business opportunities, it not only gives you the ability to earn but also promises a step towards a safe environment. With the change in climate and the hazardous plastic, it is really important to utilize the resources carefully. This article provides you with the proper guidance to start your small scale plastic recycling plant in India.

Any query and suggestion regarding this article are highly appreciated and also comment below and let us know how useful was this article you in setting up your plastic recycling plant? 

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