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Starting a Reprocessed Plastic Granules Business in India

Nisha Choudhary
April 24, 2025
6 min read

Reprocessed Plastic Granules Business: An Overview

Are you planning to set up a Reprocessed Plastic Granules Business in India? If yes, you are one step away from entering the most profitable and eco-friendly industry. With rising plastic waste and strict environmental laws, turn waste into wealth.

RegisterKaro can help you start a reprocessed plastic granules business in India. Their expert team offers guidance for this business setup. We take care of everything, from EPR registration to legal compliance. This way, you can focus on your business.

What is a Reprocessed Plastic Granules Business?

A reprocessed plastic granules business involves plastic waste converted into reusable granules. These plastic granules are later used to manufacture various products. This method supports a circular economy. It creates opportunities for sustainable businesses in this growing market.

Understanding the Profit Potential of a Reprocessed Plastic Granules Business

The profit potential of a reprocessed plastic granules business is high as it helps in growth, by protecting the environment. According to CPCB, India generates over 3.4 million tonnes of plastic waste annually. Thus, turning this waste into wealth results in a profitable business. Reprocessing this waste into plastic granules makes it a valuable raw material. It can be used in FMCG, agriculture, and manufacturing.

Let’s understand this by the real-life example of Ganesha Ecosphere Ltd, one of the leading players in India. They collect waste PET bottles and convert them into recycled polyester fibre. Companies like Coca-Cola and PepsiCo have partnered with such recyclers to promote EPR programs. 

Ganesha Ecosphere Ltd exemplifies the profitability potential in India’s plastic recycling sector. In FY2024, the company achieved a profit margin of 12.3% and a net profit margin of 3.6%, converting plastic waste into valuable products like recycled polyester. Such figures underscore the financial viability of ventures in this industry.

Cost Overview and Profitability Insights

Starting a reprocessed plastic granules business requires an investment of ₹30 to ₹60 lakhs. Key expenses include machinery, land lease, labour, and licenses. Initially, focus on setting up the plant and securing a stable supply chain. Complying with environmental regulations, such as EPR, adds to the costs. Once operational, the profit margin ranges from 15% to 25%.

The business’s profit depends on an efficient supply chain and market demand. Clients such as manufacturers, packagers, and MNCs rely on recycled materials. Establishing strong relationships with these industries ensures steady business growth. With stable operations, your business can offer sustainable solutions for waste management.

Starting a reprocessed plastic granules business means following India’s EPR policy. Here are the legal requirements and frameworks as follows:

  • EPR Registration: EPR registration is mandatory under the Plastic Waste Management Rules, 2016. All plastic processors, recyclers, and manufacturers must register with the CPCB.
  • Government sanction: The State Pollution Control Board (SPCB) grants this under the Air and Water Pollution Acts.
  • Factory License: You need this license under the Factories Act, 1948, if your plant has 10 or more workers.
  • Udyam Registration: It allows businesses to classify themselves as MSMEs and avail themselves of benefits.
  • GST Registration: Mandatory for all businesses engaged in manufacturing or sales.

Relevant Laws:

  • Plastic Waste Management Rules, 2016 
  • Environment (Protection) Act, 1986
  • Hazardous Waste (Management and Transboundary Movement) Rules, 2016
Essential Legal approvals in plastic granules business

Step-by-Step Guide to Start a Reprocessed Plastic Granules Business

Thinking of diving into the plastic recycling business? Here’s a simple guide to start your reprocessed plastic granules business in India:

1. Business Planning and Research

Begin with strong market research. Find out where plastic waste comes from in your area. Also, check how much we need of reprocessed granules. A business plan helps in estimating investment and operational workflow.

2. Choose an ideal location

Your recycling plant should be set up away from residential zones. Industrial areas with waste collection centres are for logistics and compliance approvals.

3. Register your business entity

Choose the right structure:

Registering your entity ensures business credibility and access to government schemes.

Need help with business registration? Let RegisterKaro assist you.

4. Get EPR registration

Under EPR norms, you must report your recycling capacity and waste management mechanisms. This is crucial for transparency and regulatory audits.

5. Pollution Control NOCs

Get approval from the State Pollution Control Board for the Consent to Establish (CTE) and Consent to Operate (CTO). It requires a detailed project report, site plan, and machinery details.

6. Setup of machinery and operations

Invest in machines like:

  • Plastic shredders
  • Washing units
  • Drying systems
  • Granulators

Ensure that safety standards and quality control are in place. Operating efficiency and granule quality decide your reputation in the market.

7. Workforce and Training

Hire trained technicians and workers for machine handling, safety monitoring, and segregation. Invest in training to reduce errors and maximize output.

Role of IPCA in Reprocessed Plastic Granules Business and Recycling Initiatives

The CPCB recognized IPCA in 2001 as a leader in plastic recycling. IPCA drives organized waste collection systems across India. They implement effective Extended Producer Responsibility (EPR) frameworks daily. Their ecosystem connects manufacturers, waste generators, and recyclers seamlessly.

IPCA builds strategic partnerships with local governments and major brands. They specialize in transforming waste plastic into reusable granules efficiently. Through these efforts, IPCA also raises public awareness effectively. Their flagship Sankalp Project collects post-consumer plastic by sending materials to approved recyclers for processing.

Furthermore, IPCA pioneered the circular economy approach in India. As a result, many businesses now follow their successful model. Their initiatives continue to transform the plastic recycling landscape completely.

Planning to launch your business in collaboration with recognized waste collection bodies? Start your EPR registration with RegisterKaro.

Real-Life Industry Snapshot: Who Is Leading the Way?

  • Ganesha Ecosphere Ltd is one of India’s largest PET recyclers. It has many plants located throughout the country, as mentioned earlier.
  • Banyan Nation is known for its tech-based approach to collecting and recycling plastic waste. They partner with global brands to achieve EPR targets.
  • Dalmia Polypro Industries makes top-quality plastic granules. They have contracts with packaging firms throughout India.

These companies show how to turn plastic waste into valuable products. They meet regulations and help achieve sustainability goals.

Frequently Asked Questions (FAQs) 

Q1. Is EPR registration mandatory?
Yes, it is mandatory as per the Plastic Waste Management Rules for plastic-related businesses.

Q2. Can I set up a granules business without industrial land?
No, the unit must be established in an industrial area to meet environmental compliance norms.

Q3. How long does it take to get pollution board clearance?
It usually takes 30 to 60 days, depending on document accuracy and site inspections.

Q4. Can I get subsidies or government grants?
Yes, you may be eligible under schemes like MSME and PMEGP, based on specific criteria.

Q5. Do I need BIS certification?
Yes, BIS certification is required for certain product categories meant for industrial use.

Q6. How do I ensure quality control?
Implement routine testing and quality checks to maintain product standards.

Q7. Is this business export viable?
Yes, especially if you produce high-grade granules for the packaging or textile industries.

Q8. What licenses are needed apart from EPR?
You will need GST registration, factory license, PCB clearance, and Udyam certificate.

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