Capstone Project

Plastic Recycling Business Plan

RG Recyclers

Prepared by-

Rohit Gandhi

PGDM Marketing

(2016-2018)
Executive summary

COMPANY OVERVIEW ............................................................................ 5

Vision Statement .......................................................................................... 5

Mission Statement ........................................................................................ 5

Need of the hour ............................................................................................... 6

Markets and Products .................................................................................... 10

Objectives .................................................................................................. 10

Key to success:........................................................................................... 11

Product and services ...................................................................................... 12

Market comparison ..................................................................................... 13

Possible obstacles ......................................................................................... 14

Industry and marketplace analysis ................................................................. 15

Industry analysis ......................................................................................... 16

STRUCTURE OF THE PLASTICS INDUSTRY .................................................. 17

Raw Material Producers ............................................................................. 17

Compounders ............................................................................................. 17

Stockists ..................................................................................................... 17

Specialist Manufacturers or Molders ........................................................... 17

Other Manufacturers................................................................................... 18

Fabricators ................................................................................................. 18

Marketplace analysis...................................................................................... 19

Customer analysis.......................................................................................... 19

Competitor analysis........................................................................................ 19

Marketing strategy.......................................................................................... 20

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Product/ service strategy ................................................................................ 20

Pricing strategy .............................................................................................. 21

Distribution strategy ....................................................................................... 21

Advertising & promotion strategy .................................................................... 21

Sales strategy ................................................................................................ 22

Development .................................................................................................. 22

Development strategy................................................................................. 23

Management .................................................................................................. 24

Job description ........................................................................................... 24

Operations ..................................................................................................... 25

Stages of Recyclingand Production ............................................................ 26

Chipping ..................................................................................................... 26

Segregation ................................................................................................ 26

Cleaning ..................................................................................................... 27

Agglomerating / Colouring ...................................................................... 27

Extrusion / Palletisation .......................................................................... 27

Fabrication into end Product ....................................................................... 28

Scope of operations .................................................................................... 28

Supply chain ............................................................................................... 29

PVC & PET process flow............................................................................. 29

Bibliography ............................................................................................................... 30

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EXECUTIVE SUMMARY
Plastic is the basic need of our day-to-day life. During recent years the plastic
industry has grown with a substantial growth rate. This growth is driven by three
sectors viz. packaging, infrastructure and agriculture. There are the various
varieties of plastics out of which PVC (Polyvinylchloride) and PET
(Polyethylene Terephthylene) plastics have their considerable contribution.
PET plastics are generally used in the manufacturing of beverage bottles for the
packaging and PVC plastic is used in the production of household plastic
materials. The growing utilization of plastics in industrial and consumer
applications and surrounding solid waste recycling, has led to an increased
demand for recycled plastic resins and products.

We the RG Recyclers will provide a wide range of plastic solutions for household
and raw material for packaging of various companies. As a part of our ongoing
efforts to exploit this opportunity we will recycle the plastics and then produce
kitchenware items and other related plastic material. We will also sell the recycled
plastics to the companies in the plastic business. We will have a recycling plant
along with the production unit. The raw material will be procured from the waste
collectors. The raw material will be post-consumed beverage bottles and other
soft plastic materials.

Our main focus is our industrial customer whom we will sell PET bottles and PET
flakes. RG Recyclers will be a solution proprietorship business run by the
promoters.

To exploit the market we will use penetration pricing as our marketing strategy
and utilize our distribution network and strong industrial relationship.

As a future plan in coming years we will increase the variety of plastics like LDPE
(Low density polyethylene) and HDPE (High density polyethylene). By doing this we
will be able to produce plastic carry bags and raw material for production for plastic
chairs and tables and other fiber based products.
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COMPANY OVERVIEW
RG Recyclers provide a wide range of plastic solutions for households and
raw material for packaging to the various companies. Ratnagiri is the place
where the facility will be established and other operation will commence.

We will collect the plastic garbage like consumer beverage bottles, plastic bags from
various Scrap Dealers and then our recycle unit will process it which
eventually be used for the production of finished goods.

The plastic garbage we are getting as raw material has two components one is PVC
(Polyvinyl chloride) and other is PET (Polyethylene Terephthylene). Firstly, the whole
garbage is melted and then PVC and PET are separated from each other by froth
flotation technique.

We will create a plant (actual facilities to be shared with the recycling unit) to
manufacture extruded plastic flakes (purified plastic). The extruded plastic is then
molded in the various products.

We will reproduce two types of plastics

PVC (Polyvinyl chloride)

PET (Polyethylene terephthylene)

Vision Statement
To reduce PlastIc waste from the environment by using the best practices in
India to create environmental sustainable economy.

Mission Statement
Strive to provide the excellent plastic solution to the customers at
competitive prices.
Strive to improve our product portfolio.

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NEED OF THE HOUR
Scrap business
The scrap material industry may appear to be a booming one with numerous
shops set up all over the country, but the reality is vastly different. Ever wondered
where all these scrap materials go? “The metal and glass scrap materials go to
Vapi, all the newspapers go to Gujarat and get recycled for further use while
electronic items if they are in working condition are sold or sent to Chor Bazaar. All
of these materials are sold to the wholesale dealer who then sells it to the
particular industry. For example, old newspapers go to Gujarat which is
recycled to be reprinted into newspapers. While the plastics are ground into fine
particles and are used to make plastic chairs, bottles, bags etc. It is due to these
small time Scrap Dealers that this business is booming. The competition is so
tough that many of the old Scrap Dealers have shut shop and moved to
wholesale retail. Old newspapers, cardboard, bottles, waste plastics are an
important component of this industry but it is materials like brass (200/Kg), copper
(280/Kg), aluminium (80/Kg) and antiques (varying on its value) that bring in the
most money.

One can make a sizeable profit by selling metal scrap and antiques. But at times we
make mistakes of storing scrap materials in excess and if the market rate goes down
then we have to suffer as there is a huge loss. With the changing times, even the
Scrap Dealers have adopted to the policy of picking up scrap materials from
clients home in order to market their business and reach out to more clients. In
most parts of the world, the customer goes to scrap dealers to sell their
unused and old material but in Ratnagiri and other adjoining areas it is the
Scrap Dealers that are seen going door-to-door in a particular area to pick up
scrap and ensure that their daily livelihood is earned.

The scrap business may appear to be a booming industry but the ground reality is
vastly different. It is no longer an attractive business and more of a last resort. And

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with increasing competition, an exploding urban population and smarter customers,
the business seems to get increasingly difficult day by day.

Recycle business
With e-commerce evolving, buying an electronic gadget is only a click away at any
time. All you have to do is select the preferred product and order; and the product is
at your door step within no time. But have you wondered about the disposal of that
same electronic gadget? More than 90 per cent of e-waste ends up in land fillings.

Major city waste contribution:

• According to the Delhi government’s environment department, the state

generates 8,360 tonnes per day (TPD) of municipal solid waste (MSW). Yet
another study reveals that urban India generates 1,88,500 TPD (68.8 million
tonnes per year) of MSW at a per capita waste generation rate of 500 grams
per person per day.

The quantum of plastic waste generation in 60 cities of the country is

estimated to be over 15,342 tonnes per day while more than 6,000 tonnes
remain uncollected and littered.

Ratnagiri and other cities contribute to 1000 MT per day of waste.

Realisation

We realised two things-

Though efforts are being made to separate recyclable material from waste,
the pace of work is slow;

There is a lack of awareness among people and no incentives to encourage

households to shift at source.

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India generates 13,00,000 tones of e-waste annually, which is increasing at 26% on a
yearly basis. Most of the e-waste ends up in the informal sector leading to
environmental hazards. To ward off this problem, a law was brought into force in
May 2017 through the Environment Protection Act, which requires e-waste to be
disposed off through formal channels only.

We see tonnes of recyclable waste being discarded and ending up in landfills.

Hence, we should promote the concept of circular economy as well, which is
producing-using-recycling.

With approximately 1.5 million Scrap Dealers in India, we manage to recycle just
20% of the 8.5 million tons of paper produced every year. This sector is
untrusted, unorganized, inefficient, and ripe for disruption.

Recycle industry overview

Recyclers are unable to procure enough material to meet their monthly
requirements. Lack of online platforms providing good, quality data of the lots
being auctioned didn’t help their cause as it resulted in financial losses. The
last three years have seen a bunch of startups sprouting in the waste
management and recycling category;
1. Chennai-based Paperman was one of early social enterprises dedicated to
creating awareness around recycling right from 2010.
2. Founded in 2013, Banyan, primarily focuses on weeding out inefficiencies
out in the municipal solid waste management system.
3. Noida-based Attero Recycling raised Rs 100 crore in 2014 and is a success
story in this space.
4. Chennai-based Kabadiwalla Connect garnered attention and a sizeable grant
from the World Economic Forum.
5. E-waste recyclers, Karma Recycling also raised an undisclosed amount in July
2015.

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 6. Some of the other newer B2C startups like Kabadi
Express, Scrapcrow Pom, EnCashea have followed Bhopal-based Kabadiwala’s
strategy of incentivising the customer by paying for the scrap collected from
the customer.
7. Bengaluru-based Binbag, Kolkota-based e-waste management
platform Avshesh, Vidisha-based BhangaarChand.
8. Gurgaon-based Greenobin are some of the other players in the space.
In India, the awareness about paper recycling is very bleak. There’s a huge gap
between total paper wastage and papers recycled. India recycles only about 20 per
cent of its waste paper. Though a bulk of the 80 per cent of waste paper goes into
“Indian” lifestyle aspects like wrapping, packing, etc., they eventually end up in
dumping grounds. With the growing demand, we continue to axe more and more
trees – the current demand of 10 million tonnes annually is projected to more than
double by 2025. Whereas, in developed countries about 65% of papers are
recovered and reused every year.
Each year, the nation dumps 6.7 million tons of recyclable material (worth $3.1billion
i.e. Rs. 19000 crores) in its unsanitary landfills causing serious environmental
degradation. The informal sector forms the backbone of the recycling value chain
and is responsible for achieving recycling rates of 70%, one of the highest in the
world. Ironically, rag pickers are treated as social outcasts, and itinerant waste
collectors and neighborhood Scrap Dealers (small scale stationary aggregators) —
who are at the bottom of the chain — depend on middlemen (large traders) for
their livelihood and working capital requirements.

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MARKETS AND PRODUCTS
The plastic products usually do not carry a brand name so intruding in the business
like plastic will not be too hard with low price strategy. The population of
Ratnagiri and the cities around it is around 2.5 Crores and this area basically
comprises of low to middle income group families so they focus on plastic
products rather than fiber since it is a cheaper. Hence it is huge market to
exploit.

From Ratnagiri city 150 tons of solid waste is produced from that 15 tons of
plastic bags and around 5 tons of plastic bottles is generated per day. So, the
supply of raw material will be continuous.

Apart from this we will sell raw material for packaging to the various small
companies in this area. Around 4 large scale and 50 small and medium scale
companies are working in this region. So, a large amount of industrial customer is
also available.

There are two folds of products that we are providing one are industrial and other is
household.

Objectives
• Develop a business that survives on its own cash.
• Create a company that exceeds customer satisfaction level.
• Expand the service to whole Maharashtra in first two years and then to
Goa and Karnataka
• Extending the services to electronic component manufacturing companies for
production of capacitors and printed circuit boards. Also, to start textile
products and Mats.

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Key to success:
• Secure Supply- Contract for supply of post-consumer bottles and post-
industrial manufacturing waste for PET raw material feed stock.
• Satisfy our customer so that we can retain them.
• Maintain low overhead and operating costs.
• Provide better prices than all our competitors.

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PRODUCT AND SERVICES
We will provide a wide range of plastic products for households and raw material for
packaging. The recycled plastic is processed to Polyethylene Terephthalate (PET). PET
is a thermoplastic polymer viscous of polyester family. The biggest property of this
compound is it transparent. This is the reason why it is used for packaging. Apart
from this PET have good strength, ductility, stiffness and hardness. After the
recycling process completed an extruded plastic is generated. Plastics extrusion is a
high volume manufacturing process in which raw plastic material is melted and
formed into a continuous profile.

The products we are producing are

• Cleaned and recycled plastic flakes of PET and bottles, recovered from post-
consumer beverage bottles. (This PET will work as raw material for packaging
to various firms, not for the end user)
• Household finished plastic goods. We will manufacture plastic tubes of
various diameters, plastic kitchenware. (For the end user)
• PET flake will be sold to thermo formers (those who mold plastic sheets into
usable products) primarily to be used to produce high-visibility packaging.
And also to the beverage companies for packaging.

Recycled plastic is widely used in mainstream construction products such as damp

proof membrane, drainage pipes, ducting and flooring. Bins, street signs and
planters are frequently made from plastic. They are cost competitive and resistant to
damage. Local authorities and schools are able to demonstrate recycling in action by
specifying recycled products High strength PET is used in the clothing, furnishings,
tyrecordandtechnical textiles. ApartfromPET thehousehold plastic will bedirectly
sold to the end customers. In day-to-day life plastic items like water bottles, shop
case scrubber etc. is frequently used. So, there is a big demand of these in local
market.

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Market comparison
While quality and delivery are important factors to our potential clients, price is
most often the determining factor in a buying decision. Good-qualitypackaging
products manufactured from recycled (less expensive) resins, as close as practical to
the end customer's operations, will be most competitive and achieve a significant
market share.

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POSSIBLE OBSTACLES
When the product is completed and ready for the market launch. The possible
obstacles are:

Unavailable or scarce raw material stock for production

Replay is confident that it has secured good availability of low cost post-consumer
PET bottles (feed stock) derived from post-consumer beverage bottles. It may be
possible that we would not get desired raw material.

Company may not meet environmental standards

This environmentally-favorable venture provides for the development of technically

feasible and economically viable solutions to PET plastic beverage bottle recycling, as
well as environmentally aware in-house re-use practices which filter and
return nearly all of the process water to the production lines

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INDUSTRY AND MARKETPLACE ANALYSIS

Industry analysis
Plastic recycling is an industry in itself in India. According to the Crisil research
7360 companies are working in this industry with a turnover of Rs 9200 Crore
provides employment to 3.5 million people. In India, per capita plastic
consumption is one of the lowest in the world. The per capita consumption is
just one fifth of world average that is 5kg. The domestic demand of plastic has
grown by 9% and reached to 4.5MMT in year 2005.The GDP has grown during
this period at 6.3% and plastic industry 1.3 times of GDP. According to the Crisil
report the demand of plastic by 2017 was around 12MT. The plastic consumption
in India is booming. Demand for commodity plastics is growing at the rate of 15%
per year. . India holds immense potential for the use of plastic in the
infrastructure and agriculture. In case of packaging industry we are using more
plastic than the developed countries. The growth is driven in three major
sectors – infrastructure that is 13% of the total, packaging is 15% of the total and
10% for plastic consumer durables. It is projected that the plastic waste generation
will reach the will reach the level of 1.6 million tons annually. India produces 5600
tons of plastic waste per day.

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Region wise and polymer wise turnover of recycling industry in Crores

Region PVC PET

West 383 156

East 75 86

North 338 158

South 111 139

Total 907 539

Each region is specialized in one type of plastic viz south: PET; north: PVC;

Plastic India Foundation estimates the current plastic recycling rate at 60%. One
estimate is that about 20,000 microenterprises are engaged in reprocessing and
recovery of plastic waste in addition to 180,000 of various sorting and washing units,
60% of which are unregistered. Delhi alone has estimated 53,400 units and Delhi and
Bombay together process over 50% of India's waste plastics.
STRUCTURE OF THE PLASTICS INDUSTRY

Raw Material Producers

These are chemical and petroleum companies who produce "virgin" plastic
(sometimes called resin or polymer) in huge quantities. The main influence they have
on the recycler is to fix prices and availability of virgin materials. Virgin material is
delivered in powder or pellet form, in plastic or paper sacks of around 20 kilos
weight, inlarge cardboard drums that hold many times that quantity or even by road
tanker.

Compounders
These specialist companies, usually small, stock various polymers and provide th e
manufacturers of plastic goods with technical advice and the most suitable materials
or mixtures for each individual need. The compounder is often the best market for
the recycler because it possesses superior technical knowledge and has a large
volume throughput of virgin material, in which small percentages of reclaim will
reduce cost without seriously affecting the quality required by the molder.

Stockists
These warehouses stock polymers and compounds but neither manufacture
themselves, nor provide a compounding service. They may be agents or subsidiaries
of the producer companies or departments of companies concerned with the supply
of other materials such as chemical, rubber or paper. They may be willing to stock
reclaim alongside virgin materials, especially if these are in short supply.

Specialist Manufacturers or Molders

These buy their raw materials from compounders. If they do their own
compounding, or if the material is used as produced and does not need
compounding, they may buy direct from stockists or producers. They are specialists

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in plastics and do not perform other types of manufacturing. They may be an
attractive market to the recycler because they operate at high volume, but rarely
have as much flexibility to vary product quality as molders who know, accurately, the
final market for the product.

Other Manufacturers
Many companies are not plastics specialists but employ molding operations in the
manufacture of some other product. For example shoe and boot makers use plastics
extensively and may carry out the various plastics molding operations in the same
production sequence as the work in leather, canvas, rubber etc. Many
manufacturers use plastic packaging machinery at the end of a production
operation.

Fabricators
These firms cut and join sheet, rod or extrusion to manufacture a variety of
products. They have no opportunity to use reclaim. Machinery and Tool Makers and
other sector of the plastics industry justifies mention although not customers for
reclaim. The makers and suppliers of plastics manufacturing machinery, tools,
moulds and dies are well informed about who does what, who makes what and who
uses what within the local plastics industry. They may advise who is likely to buy
material.

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MARKETPLACE ANALYSIS
Various overseas players wish to explore the Indian market and invest in
opportunities thrown open by the country. As shown above the west region of India
is specialized in recycling of PVC. So there is a great scope of PET recycling.
Apart from this the other

• A huge market with full of opportunity.

• Absence of standard product and service.
• Well connected with other rural areas.
• Having good transportation facility.

CUSTOMER ANALYSIS
Since we are new player in the market so we need to make some stringent strategies
to penetrate market and grab customers. The customers of the plastic industry are
scattered due to lack well known brand names. So, our first priority will be to
accumulate the defused customers.

The direct customers are the customers whom we are selling our product regularly.
For us households whom we are selling plastic goods and companies who are getting
raw materials for packaging are direct customers (PET bottles). Hence only in
Ratnagiri around 90000 families can be direct prospective customers and in terms of
business- to-business market around 30 small and medium scale companies can
be our direct customers.

Apart from them there are few small companies that are giving compounding
services. They use to collect various types of plastics flakes along with the virgin
plastic and suggest customer (companies) in choosing appropriate plastic.

COMPETITOR ANALYSIS
Although there are about 20 players who convert nearly 300,000 tons of PET bottles
into polyester fiber each year, there are numerous small players who flood the
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market. As we are also not alone as a supplier of PET to the companies as raw
materials there are many companies in this region that are supplying PET.
MARKETING STRATEGY

The Company has chosen to focus on the production of plastic packaging materials
from recycled post-consumer beverage bottles. We have identified a significant
available market in the northern and middle region of Maharashtra. All of our initial
marketing strategy will be to secure contracts in that segment, and after reaching
full planned capacity, look to grow in concert with that segment and related
markets. We see little need at present for further market research and development,
and will focus on continually updating our production technology in an effort to
remain in the forefront of our chosen marketplace.

PRODUCT/ SERVICE STRATEGY

The packaging companies require high quality and highly transparent PET bottles.
The companies that are producing mineral water will reject PET bottles with even
small impurity/ opaqueness. So, we the RG Recyclers will provide high-end
PET flakes for the perfect packaging.

RG Recyclers will apply recycling and extrusion technology managed by decades

of industry specific expertise to create a competitive advantage for its clients.
These processes will produce clean, cost-efficient, recycled raw material for
manufacturers of thermoform, laminate and other high value-added products,
and high strength packaging strapping for shippers of large products and
pallets, thereby reducing costs and creating a clear pricing edge among their
competitors.

Plastic bags and plastic sheets are now in high demand. And this demand is driven by
continuously increasing promotional activities.

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PRICING STRATEGY
As plastic products do not carry any brand name so only pricing and distribution
strategies will works to achieve competitive edge. The pricing strategy we will use
is penetration pricing. The price of all household plastic goods we will sell will be
lower than the market price. Also for the PET flakes and bottles the price will be
lower than the competitors. A lower price will enable us to get contracts of PET
bottles and sheets from various companies.

In case of kitchenware and other household products we will provide combo offers
and discounts which a common customer expects.

DISTRIBUTION STRATEGY
As I described before that firstly we will target Ratnagiri, and nearby villages close
to it. We will have a distribution center in the Ratnagiri city that continuously
maintains the supply of goods. So the household plastics will be sold through
small local grocery shops from which the customers can get them easily. Apart
from this we will hire street hawkers who will roam around the city and sell the
goods door to door.

PET bottles will be stored in warehouse that is close to the facility itself. The sales
people will directly contact to the companies that require these bottles for packaging
and look for the contracts. In city as stated above that we will have a distribution
center, from that center we will distribute to whole sellers.

ADVERTISING & PROMOTION STRATEGY

As I described we are in both B2C and B2B so, for this we will use two different
promotional strategies. For B2C business we will use flyers that will have full detail of
our product range, price, combo offers and discounts. These flyers will circulate
through the newspapers across whole city. For B2B business we will promote
through online social media and we will also develop our website through which

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enable us to widely spread our contact among various companies. The site will have
full details of product that are available for companies as well as end user.

SALES STRATEGY
The strategy of sales effort will be to convert potential and first time customers into
long term customers. Our sales strategy is totally based upon the distribution
channel and the pricing strategies. We will have a distribution centre in the city that
will take care of sales of household and also supply products to the wholesalers.

To market the products, the Company will use a number of sales agents/brokers.
They have a customer base of their own, having developed successful relationships
with their client over the years. Their customer base is currently demanding
product so they can expand upon their current base. Of course, they will expand
that to new customers when product is available.

If the company grows faster than its prime customer base, additional capacity may
be developed. We will identify additional prospective customers who can be
attracted for our products.

DEVELOPMENT
The development of RG Recyclers required accomplishing a series of action
and formalities. Since we are new in the market we will keep our production low
initially, as demand will increase the production will be enhanced respectively.
Now we will recycle and produce only two types of plastics i.e. PVC and PET, as we
grow we will produce a wide the range of plastics and its finished product. The
development process involves following steps:

• Legal formalities
• Office/business setup
• Future offerings and expansion plan

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Development strategy
In future we are looking for the production of a variety of plastic. These plastics will
be

• LDPE (Low densitypolyethylene)

• HDPE (High densitypolyethylene)

LDPE plastic is used in the production carry bags and other plastic sheets as well as
cling wrap, car covers, squeeze bottles, liners for tanks and ponds, moisture barriers
in construction. And HDPE plastics are used in production of freezer bags, water
pipes, wire and cable insulation, extrusion coating.

Our development strategy will base on timely completion of the establishment of

the business centre with low execution cost. Our strategy will focus not only the
current uninterrupted production of PVC and PET and acquisition of customer as fast
as we can, but we will also look for the future expansion plan and execution
strategy.

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MANAGEMENT
Promoters and 9 supporting staff will manage the company. There will be five
promoters of RG Recyclers.

Marketing skills like convincing power, negotiating ability, creating promotional

strategies and sales skills will all be extremely helpful in taking the business a long
way and will prove intensely valuable to take RG Recyclers to new heights.

Along with promoters five more employees will work for the accomplishment of
company’s objective. One supervisor will work on the facility along with 8 supporting
staff. Supervisor who will work upon the facility does not need to be a chemical
engineer. A simple technician having experience on working upon the facility can be
able to do this.

Job description
Process No of employees Proficiency

Sorting 2 Unskilled

Belt Conveyer 1 Semiskilled

PET Separator 1 Semiskilled

Packaging 4 Unskilled

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OPERATIONS
The operations is defined as the process used to deliver your products and service to
the customer market place and also include manufacturing transportation logistics
travel and after sales services.

The facility is located at outside the city. Facility is divided in two parts

• Recycling and Production unit

• Warehouse

The facility is located in an area of 2500 sqft. Apart from these two units there will
be an office that will look for the perpetual supply of required raw material and also
take care about the outbound logistics. The production capacity will be around
80kg/hr.

The operations will be based upon JIT i.e. just in time. We will have contracted with
the suppliers who can supply the raw material as quickly as we want. The raw
material contains post consumer beverage bottles and other plastic materials. The
bottles and other plastic material that can be recycled have a specific sign from
which it can be identified that it can be recycled or not.

The plastic is then transferred to respective unit to be recycled because PET and PVC
cannot be recycled simultaneously due to their different properties. There will be
two units running parallel to each other. One unit will recycle and produce PVC
plastic and other will perform the same for the PET plastic.

The recycled PVC is then moved for the plastic injection-molding unit in the various
shapes. Since there area variety of product is being produced so the preference
will be given to that product whose demand is high. All the products will not be
produced each and every day. There will be different products that will be produced
on different day according to the demand in market.

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After the recycling process is completed one part of PET flake is moved to the
warehouse according to the demand of raw material that different companies need
and other part will move for the molding in bottles.

The recycled PET flake is then heated and made the viscous solution of it. The PET
resin is then feeded to the molder and molder will give it various shape bottles.
And then it left for drying. Those products that further need for processing like
buckets; the handle will be inserted after the bucket is dried.

Stages of Recycling and Production

The process of recycling of waste plastics into products of varying usefulness
involves the following essential steps:

• Sizing / Chipping
• Cleaning
• Segregation.
• Agglomerating / Colouring
• Extrusion / Palletisation
• Fabrication into end Product.

Chipping
The plastics waste should be properly sized so that those may be fed into the
extruders for processing and palletizing. The sizing operation depends on the type
and shape of the waste plastics.

During this process, attention is required to separate any powdery material from
the sized / chipped plastics.

Segregation
Certain polymeric materials are compatible with each other at all proportions. For
example LDPE and LLDPE are generally compatible to each other at all
proportions.

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The advanced technology of separating / segregating different types of waste
plastics involves ‘Floatation Process’. In this process the property of the varying
densities of different plastics is made use of for segregating different types of
plastics.

However in the Indian Context, this separation or segregation process, in many

cases, are done by manual process utilizing the availability of cheap and expert labor
force. In case the waste is contaminated with embedded metals, proper method of
separating the metals / other contaminants is required.

Cleaning
The scale of cleaning depends on the type of waste. Whenever a cleaning operation
is involved, it is to be ensured that the water or any other cleaning material used,
should be discharged after ascertaining that the discharge does not contain any
objectionable substance. A proper Treatment Device may have to be deployed – like
a water treatment plant / effluent treatment plant. For drying, a suitably designed
drier is used.

Many industries situated outside the metropolises, use open space for natural drying
of the cleaned waste.

Agglomerating / Colouring
In the next operation the sized plastics waste is mixed with colour master batch in
high-speed mixers / agglomerates and the output is ready for extrusion into pellets.

Extrusion / Palletisation
This is the most important part of the process wherein the sized / chipped plastics
are plasticized and granulated to make the plastics material ready for fabrication
next. The type and size of the Extruder depend on the type and volume of the
plastics waste.

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Fabrication into end Product
Finally the reprocessed plastics granules are used as raw material for producing end
products using similar fabrication machines like Injection Molding / Extrusion etc.,
depending upon specific requirement.

Scope of operations
Our production capacity designed is of 2T/day from which in initial stages we will
utilize around 50% of it. As the business expands we will reach to optimum capacity
utilization.

Supply chain
In the city there are various small post consumer plastic bottle collectors. To make
a continuous supply of raw material we will have four big suppliers with us. There
will be one permanent supplier that will continuously supply the raw material. In
case of excess demand other suppliers will be taken into consideration. Supplier
will cover the transportation cost only. The finished product will be stored in the
warehouse and according to the demand it will be send to city distribution
center. The distribution center will directly sell the finished household plastics as
well as to the small shops.

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PET & PVC process flow

PROCESS FLOW CHART

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BIBLIOGRAPHY
• Crisil report on plastic industry
• Plastic waste option for small scale recourse recovery by Inge Lardinois
• Small scale recycling of plastic by- Jon Vogler
• http://www.businesstoday.in/magazine/features/companies-that-are-
making-wealth-from-waste/story/195163.html
• http://www.villageprofile.in
• www.yourstory.com
• http://www.expert-market.com/starting-plastic-recycling-business-plant-
business-plan-profit-india/
• http://ficci.in/spdocument/20729/Knowledge-Paper-plasticulture.pdf

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