PROJECT REPORT
Of
PLASTIC WASTE RECYCLING
PURPOSE OF THE DOCUMENT
This particular pre-feasibility is regarding Plastic Waste Recycling
The objective of the pre-feasibility report is primarily to facilitate potential entrepreneurs in project
identification for investment and in order to serve his objective; the document covers various aspects
of the project concept development, start-up, marketing, finance and management.
[We can modify the project capacity and project cost as per your requirement. We can also prepare
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PLASTIC WASTE RECYCLING
INTRODUCTION
Recycling is the process of converting waste materials into new
materials and objects. It is an alternative to "conventional" waste
disposal that can save material and help lower greenhouse
gas emissions. Recycling can prevent the waste of potentially useful
materials and reduce the consumption of fresh raw materials, thereby
reducing: energy usage, air pollution and water pollution.
Recycling is a key component of modern waste reduction and is the third
component of the "Reduce, Reuse, and Recycle" hierarchy. Recyclable
materials include many kinds of glass, paper, cardboard, metal,
plastic, tires, textiles, batteries, and electronics.
In the strictest sense, recycling of a material would produce a fresh
supply of the same material - for example, used office paper would be
converted into new office paper or used polystyrene foam into new
polystyrene. However, this is often difficult or too expensive (compared
with producing the same product from raw materials or other sources),
so "recycling" of many products or materials involve their reuse in
producing different instead. Another form of recycling is the salvage of
certain materials from complex products, either due to their intrinsic
value, or due to their hazardous nature.
Benefits of Plastic Waste Recycling
Conservation of Energy and Natural Resources: The recycling
of plastic helps save a lot of energy and natural resources. Saving
petroleum, water, and other natural resources help conserve the
balance in nature.
Clears Landfill Space: Waste is accumulated on land that should
be used for other purposes. The only way this waste can be
removed from these areas is by recycling it. Also, various
experiments have proven that when plastic waste material is
thrown on the ground, it decomposes faster and emits hazardous
toxic fumes after a certain period. These fumes are extremely
harmful to the surrounding area as they can cause different types
of lung and skin diseases.
Description of plastic Waste Recycling Machine
Waste recycling Machines are used to produce new materials from the
waste products. With the help of this machine the work of Grinding, Dust
cleaning, washing and extruding completes in a very short span. This
machine is mostly used in the waste recycling industries to make
different types of new raw material from plastic waste material.
Plastic Waste Recycling Current Market Analysis
Innovative business models such as deposit return scheme, secondary
storage of EV batteries and the retail take-back for hazardous waste
management, followed by disruptive applications like composite plastic
separation, etc., will drive the waste recycling market in 2019.
This global waste recycling and recovery market outlook study provides
an overall update on the global waste recycling market in 2019, covering
plastic waste. This research predicts that the global market revenue is
set to increase from $354.7 billion in 2018 to $376.9 billion in 2019.
There are some ISO standards related to recycling such as ISO
15270:2008 for plastics waste.
Process of Plastic Waste Recycling
Before any plastic waste is recycled, it needs to go through five different
stages so that it can be further used for making various types of
products.
Sorting: It is necessary that every item is separated according to
its make and type so that it can be processed accordingly in the
machine.
Shredding: After sorting, the plastic waste is loaded into different
conveyer belts that run the waste through the different shredders.
These shredders tear up the plastic into small pellets, preparing
them for recycling into other products.
Grinding: Next step in the waste recycling process is grinding.
Grinder is used to remove waste material from the small pellets
plastic.
Dust Cleaning: After grinding, the plastic waste is cleaned to
remove the dust from the poly bags. This process is not required
for hard plastic.
Conveyer washing: In this process, the material is washed in
clean water for few minutes.
Drum Washing: Now the material is washed after conveyer
washing. For this a round shape drum is used for washing the
material in the plant.
Dryer: In this process dryer/ Hydro is used to dry the material
came from the washing drum.
Agglomeration process: In this step mixing of the material is
done for few minutes. For Hard plastic agglo-process machine is
used (For example: Bucket, Mugs etc.) & for soft plastic normal
machine is used (For example: Poly Bags etc.)
Extruding/Recycling Machine: This involves melting the washed
plastic so that it can be extruded into small pellets, which can be
used as a raw material for different types of plastic products.
Production depends on material. If the material is hard then
production is more and vice-versa (Range = 90-125 KG).
Now the product is ready to sell in the market.
Machinery & Equipments required:
Name Description Size(Area) Motor Cost
(Production kg Capacity
PH)
Grinder Blade (30-50 kg) 8 Inch 20 HP 75,000
Blade (300-400 kg) 18 Inch 25HP 3,00,000
Blade (1 tonne) 40 Inch 80 HP 7,50,000
Dust cleaner Drum (faddu) 24 Inch 20 HP 1,50,000
Drum (zhadu) 8 feet breadth 20 HP 1,50,000
Conveyer Boat type Plant 4.5 by 12 feet 3 HP 2,00,000
Round Drum 4 by 4.5 feet 30 HP 1,80,000
Washing
Dryer(Hydro) Drum 24/28 3 HP 90,000
Film Dryer 200 MM 20 HP 2,50,000
Mixer Drum 24by24by12mm 30 HP 1,50,000
Machine
Agglomerated Drum 24by32by12mm 50 HP 2,50,000
plant
Recycling Recycling Material 100 by 80mm 25 HP 8,50,000
PP/HM/HDPE/LLD (screw size)
PE/PVC
Production of machines 100 – 150 Kg per/Hr. depend on material &
filter.
Land &Building required:
Land required 700-800 Square Feet (approx.)
Approximate rent for the same is 15000-16000 per Month.
Labour Requirement:
12-15 Manpower are required for the waste recycling process.
Includes:
10-11 skilled Labour
4-5 Semiskilled Labour
Break Even Point:
Break-even point of the machine = 52,800 packets
Company should operate at minimum 22% of Production capacity to
cover its costs (variable + Fixed)
Raw Material Requirement of waste recycling machine
Types of raw material
1. Cheap Quality
2. Good Quality
Cheap Plastic (cost per KG) =Rs.7-8
Good Quality plastic (cost per KG) = Rs.10-12
Waste recycling license ®istration
For Company
Obtain the GST registration.
Additionally, apply for MSME Udyog Aadhaar online registration
Fire/ Pollution Registration as required.
Choice of a Brand Name of the product and secure the name with
Trademark if required.
Implementation Schedule
S.N. Activity Time Required
(in Months)
1 Acquisition Of premises 1
2 Construction (if Applicable) 1- 2 Months
3 Procurement & installation of Plant & Machinery 2
4 Arrangement of Finance 2
5 Requirement of required Manpower 1
Total time Required (some activities shall run 4-5 Months
concurrently)
Conclusion:
After completion of manufacturing process, product in the form
of Pellets/Granules is ready to sell in the market. Plastic waste
recycling product has a very good market potential & this
product is used as raw material by trader/whole-seller or
manufacturing unites for the production of Buckets, Mugs, poly
bags etc.
Technical Process Flow Chart
Hard Plastic Waste Recycling
Load waste in the machine
Shredding
Scrap Grinding
Drum Washing
Dryer/ Hydro
Agglomeration process
Carton Packaging
Dispatch of Goods
Technical Process Flow Chart
Soft Plastic Waste Recycling
Load waste in the machine
Shredding
Scrap Grinding
Dust cleaning
Conveyer washing
Drum Washing
Dryer/ Hydro
Agglomeration process
Carton Packaging
Dispatch of Goods
Project Economics
COMPUTATION OF PRODUCTION OF
PLASTICWASTE RECYCLING
Items to be Manufactured
Manufacturing Capacity /Machine
(Output) 100 kg Per hour
wastage 15% of input
input 118 kg per hour
Output per day 800
output per annum 240,000
total raw material required per
annum 282,353 kg
Year Capacity Qty
Utilisation
1st Year 50% 141,176
2nd Year 55% 155,294
3rd Year 60% 169,412
4th Year 65% 183,529
5th Year 70% 197,647
6th Year 75% 211,765
CALULATION OF CONSUMPTION OF RAW MATERIAL
Item Name Quantity of
Raw Material
At Capacity
Raw Material 100% 282,353
Capacity Rate per Kg Amount
Raw Material
Consumed Utilisation (Rs. in lacs)
1st Year 50% 10.00 14.12
nd
2 Year 55% 10.30 16.00
rd
3 Year 60% 10.61 17.97
th
4 Year 65% 10.93 20.05
th
5 Year 70% 11.26 22.25
th
6 Year 75% 11.59 24.55
COMPUTATION OF SALE
Particulars 1st year 2nd year 3rd year 4th year 5th year 6th year
Input per annum 141,176 155,294 169,412 183,529 197,647 211,765
Output per annum 120,000 132,000 144,000 156,000 168,000 180,000
Op Stock - 4,800 5,280 5,760 6,240 6,720
Production 120,000 132,000 144,000 156,000 168,000 180,000
Les: Closing
Stock 4,800 5,280 5,760 6,240 6,720 7,200
Net Sale 115,200 131,520 143,520 155,520 167,520 179,520
Sale Price Per KG 70.00 72.00 74.00 76.00 78.00 80.00
Sale (in Lacs) 80.64 94.69 106.20 118.20 130.67 143.62
Cost of Project
PROJECT AT GLANCE
Term Loan of Rs. 21.45 Lacs and Working Capital limit of Rs. 3.00 Lacs
COST OF PROJECT PARTICULARS AMOUNT AMOUNT AMOUNT
Land
Building Civil Work
Plant & Machinery 24.60 6.15 18.45
Furniture & Fixtures and Other
Assets 4.00 1.00 3.00
Margin for Working Capital 1.00 1.00 -
Total 29.60 8.15 21.45
MEANS OF FINANCE PARTICULARS AMOUNT
Own Contribution 8.15
Bank Loan 21.45
Total 29.60
PROJECTED PROFITABILITY STATEMENT
PARTICULARS 1st year 2nd year 3rd year 4th year 5th year 6th year
Capacity Utilisation % 50% 55% 60% 65% 70% 75%
SALES
143.62
Gross Sale 80.64 94.69 106.20 118.20 130.67
143.62
Total 80.64 94.69 106.20 118.20 130.67
COST OF SALES
24.55
Raw Material Consumed 14.12 16.00 17.97 20.05 22.25
23.00
Electricity Expenses 14.28 15.71 17.28 19.01 20.91
1.15
Repair & Maintenance 0.65 0.76 0.85 0.95 1.05
40.06
Labour & Wages 27.36 30.10 33.11 36.42 40.06
1.87
Depreciation 4.09 3.50 2.99 2.56 2.19
1.44
Consumables & others 0.81 0.95 1.06 1.18 1.31
92.06
Cost of Production 61.30 67.00 73.26 80.16 87.75
- 3.51
Add: Opening Stock /WIP 2.45 2.68 2.93 3.21
3.68
Less: Closing Stock /WIP 2.45 2.68 2.93 3.21 3.51
91.89
Cost of Sales 58.85 66.77 73.01 79.89 87.45
51.72
GROSS PROFIT 21.79 27.92 33.20 38.31 43.22
27% 29% 31% 32% 33% 36%
7.73
Salary to Staff 4.80 5.28 5.81 6.39 7.03
0.12
Interest on Term Loan 1.55 1.99 1.53 1.07 0.46
0.33
Interest on working Capital 0.33 0.33 0.33 0.33 0.33
2.90
rent 1.80 1.98 2.18 2.40 2.64
4.31
Selling &Adm Expenses Exp. 2.42 2.84 3.19 3.55 3.92
15.39
TOTAL 10.90 12.42 13.03 13.73 14.37
36.33
NET PROFIT 10.89 15.50 20.16 24.58 28.85
10.90
Taxation 3.27 4.65 6.05 7.37 8.65
25.43
PROFIT (After Tax) 7.62 10.85 14.11 17.20 20.19
PROJECTED BALANCE SHEET
PARTICULARS 1st year 2nd year 3rd year 4th year 5th year 6th year
SOURCES OF FUND
Own Capital 8.15 8.15 8.15 8.15 8.15 8.15
Retained Profit 7.62 18.47 32.58 49.79 69.98 95.42
Term Loan 20.05 15.85 11.65 7.45 3.25 -
Working Capital 3.00 3.00 3.00 3.00 3.00 3.00
Sundry Creditors 0.38 0.43 0.48 0.53 0.59 0.65
Provisions & Other Liab. 0.70 0.90 1.10 1.21 1.33 1.46
TOTAL: 39.90 46.80 56.96 70.13 86.31 108.69
APPLICATION OF FUND
Fixed Assets (Gross) 28.60 28.60 28.60 28.60 28.60 28.60
Gross Dep. 4.09 7.59 10.58 13.13 15.32 17.20
Net Fixed Assets 24.51 21.01 18.02 15.47 13.28 11.40
Current Assets
Sundry Debtors 3.23 5.68 7.08 7.88 10.89 11.97
Stock in Hand 3.02 3.32 3.65 4.01 4.40 4.66
Cash and Bank 9.15 16.78 28.21 42.78 57.74 80.65
TOTAL: 39.90 46.80 56.96 70.13 86.31 108.69
PROJECTED CASH FLOW STATEMENT
PARTICULARS 1st year 2nd year 3rd year 4th year 5th year 6th year
SOURCES OF FUND
- - - - -
Own Margin 8.15
28.85
Net Profit 10.89 15.50 20.16 24.58 36.33
Depreciation & Exp. W/off 4.09 3.50 2.99 2.56 2.19 1.87
- - - - -
Increase in Cash Credit 3.00
- - - - -
Increase in Term Loan 21.45
Increase in Creditors 0.38 0.05 0.05 0.06 0.06 0.06
Increase in Provisions & Oth lib 0.70 0.20 0.20 0.11 0.12 0.13
TOTAL: 48.66 19.24 23.41 27.30 31.22 38.40
APPLICATION OF FUND
- - - - -
Increase in Fixed Assets 28.60
Increase in Stock 3.02 0.30 0.33 0.36 0.39 0.26
Increase in Debtors 3.23 2.46 1.40 0.80 3.01 1.08
Repayment of Term Loan 1.40 4.20 4.20 4.20 4.20 3.25
Taxation 3.27 4.65 6.05 7.37 8.65 10.90
TOTAL : 39.51 11.61 11.98 12.73 16.25 15.49
Opening Cash & Bank Balance - 9.15 16.78 28.21 42.78 57.74
Add: Surplus 9.15 7.64 11.43 14.57 14.96 22.91
Closing Cash & Bank Balance 9.15 16.78 28.21 42.78 57.74 80.65
COMPUTATION OF CLOSING STOCK
PARTICULARS 1st year 2nd year 3rd year 4th year 5th year 6th year
Finished Goods
(12 Days requirement) 2.45 2.68 2.93 3.21 3.51 3.68
Raw Material
(12 Days requirement) 0.56 0.64 0.72 0.80 0.89 0.98
Closing Stock 3.02 3.32 3.65 4.01 4.40 4.66
COMPUTATION OF WORKING CAPITAL REQUIREMENT
TRADITIONAL METHOD
Particulars Amount Own Bank
Margin Finance
Finished Goods & Raw Material
3.02
Less: Creditors
0.38
Paid stock
2.64 25% 0.66 75% 1.98
Sundry Debtors
3.23 25% 0.81 75% 2.42
Working capital
5.87 1.47 4.40
WORKING CAPITAL DEMAND 4.00
2nd Method
PARTICULARS 1st Year 2nd year
Total Current Assets 15.39 25.78
Other Current Liabilities 1.08 1.33
Working Capital Gap 14.31 24.46
Min Working Capital
25% of WCG 3.58 6.11
Actual NWC 11.31 21.46
item III – IV 10.73 18.34
item III – V 3.00 3.00
MPBF (Lower of VI & VII) 3.00 3.00
3rd Method
PARTICULARS 1st Year 2nd year
Total Current Assets 15.39 25.78
Other Current Liabilities 1.08 1.33
Working Capital Gap 14.31 24.46
Min Working Capital
25% of Current Assets 3.85 6.45
Actual NWC 11.31 21.46
item III – IV 10.47 18.01
item III – V 3.00 3.00
MPBF (Lower of VI & VII) 3.00 3.00
BREAK UP OF LABOUR CHARGES
Particulars Wages No of Total
Per
Month Employees Salary
skilled 18,000.00 10 180,000.00
unskilled 12,000.00 4 48,000.00
Total Salary Per Month 228,000.00
Total Annual Labour Charges (in Lacs) 27.36
BREAK UP OF SALARY
Particulars Salary No of Total
Per
Month Employees Salary
Accountant 15,000.00 1 15,000.00
Helper 7,000.00 1 7,000.00
Supervisor 18,000.00 1 18,000.00
Total Salary Per Month 40,000.00
Total Annual Salary (in Lacs) 4.80
COMPUTATION OF DEPRECIATION
Description Plant & Furniture TOTAL
Machinery
Rate of Depreciation 15.00% 10.00%
Opening Balance - - -
Addition 24.60 4.00 28.60
Total 24.60 4.00 28.60
Less: Depreciation 3.69 0.40 4.09
WDV at end of Year 20.91 3.60 24.51
Additions During the Year - - -
Total 20.91 3.60 24.51
Less: Depreciation 3.14 0.36 3.50
WDV at end of Year 17.77 3.24 21.01
Additions During the Year - - -
Total 17.77 3.24 21.01
Less: Depreciation 2.67 0.32 2.99
WDV at end of Year 15.11 2.92 18.02
Additions During the Year - - -
Total 15.11 2.92 18.02
Less: Depreciation 2.27 0.29 2.56
WDV at end of Year 12.84 2.62 15.47
Additions During the Year - - -
Total 12.84 2.62 15.47
Less: Depreciation 1.93 0.26 2.19
WDV at end of Year 10.92 2.36 13.28
Additions During the Year - - -
Total 10.92 2.36 13.28
Less: Depreciation 1.64 0.24 1.87
WDV at end of Year 9.28 2.13 11.40
Less: Depreciation 1.39 0.21 1.60
WDV at end of Year 7.89 1.91 9.80
Less: Depreciation 1.18 0.19 1.37
WDV at end of Year 6.70 1.72 8.43
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