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How To Start E-Waste Recycling Business in India

Do you want to start an e-waste recycling business? If so, learn from this article, the important steps to follow to launch an e-waste recycling plant in India.

Information technology in India has grown exponentially in the last few years. The sales of electronic products have penetrated almost every household and office in the country. As a result, there has been a huge increase in e-waste volume. It is in fact, one of the most profitable recycling businesses in India.

This e-waste has created an environmental challenge in India. Hence, the need for more and more e-recycling facilities has compounded. Starting an e-waste recycling company in India requires reasonable investment and skilled manpower. Find below, the important steps to start an e-waste recycling plant in India.

Here are the 8 Steps to Start an E-waste Recycling Business in India

1. Market Research

It is extremely important, to know more about the local demand for e-waste recycling services, prospective customers, and other existing players operating in a similar market. Hence, it is strongly recommended to do market research before actually jumping into forming an e-waste recycling company.

Also, do not forget to talk to the local competent authorities and gather information about the rules and regulations of operating an e-recycling business in your selected plant location.

2. Develop a Business Project Plan

After you have received the market information related to the local e-waste recycling industry, it is time to draft a business project plan. Some of the basic aspects your e-waste business project plan must address are as follows:

  • Planning to collect e-waste materials from offices and other businesses
  • How you are setting up processes to sort those e-wastes
  • Where do you plan to sell the e-waste recycled products

3. Obtain Necessary Permits and Licenses

Starting and running an e-waste recycling plant in India requires a wider range of licenses and permits. This includes a Pollution Control Board (PCB) Authorization, a Consent to Establish (CTE) certificate, and a Consent to Operate (CTO) certificate. Below we list down the basic licenses required to start a recycling business in India:

  • Environmental clearance from the State Pollution Contol Board
  • Consent to establish certificate
  • Consent to operate certificate
  • Trade license
  • Authorization from SPCB
  • GST Registration
  • Fire safety certificate
  • NOC from the local pollution control board

Apart from the permits, it is advised to register your e-waste recycling business. There are various company formations to choose from. It can be a Sole proprietorship, partnership, LLP, or private limited company. Based on the size of your company, select the one that fits you best.

Read: How to Register a Company in India

4. Cost of Starting an E-Waste Recycling Business in India

It is without saying, the cost and investment to launch an e-waste recycling plant in India will depend largely on the type of equipment, production output, factory rent, salary and wages, and license fees.

You will also need to factor in expenses for the transportation and storage of e-waste materials.

On average, the cost of starting a small-scale e-waste recycling business in India will be in the range of Rs. 10 lacs to Rs. 15 Lacs. The investment will increase to Rs 50 Lacs to 1 crore Indian Rupees for a mid-sized e-waste recycling plant facility.

5. Arrange Funds

Unless you have a good funding backup, there is every reason that there will be a need of availing loans from banks, government schemes, and financial institutions. In India, there are many banks that provide business-friendly terms and working capital loans to startups.

Read: How to Get a Small Business Loan in India

6. Buy Equipment

Once you have obtained the necessary permits and funding, you can set up your e-waste recycling facility. You should ensure that your facility is equipped with the necessary equipment, such as shredders, crushers, and magnetic separators, and that it is designed to comply with environmental and safety regulations.

There is a wide range of elements and parts in electronic waste. These can be circuit boards, hard drives, metals, plastic films, magnetic chips, glass, and so on.

You will need to buy various types of tools and equipment to sort, separate, and crush those e-wastes. Below we list down some of the basic equipment, you will need to buy to process electronic waste in your plant facility.

a) Shredders: The first step in the e-waste recycling process is to rip up a wide range of components from electronic items. This is mostly done by shredding machines. Components like hard drives, ICs, printed circuit boards, etc. are generally shredded for further processing.

b) Magnetic Separators: In electronic waste, you will find both magnetic and non-magnetic components. Magnetic separators are generally used to declutter magnetic metals from non-magnetic materials.

c) Crushers: As a matter of fact, crushers play a major role in the e-waste recycling process. It is used to smash the e-waste materials into smaller pieces.

The other type of equipment you need to procure are as follows:

  • Screening equipment
  • Optical sorters
  • Dust collectors
  • Waste balers

7. Develop a Collection of Network

One of the most important parts of running an e-waste recycling facility is to source e-waste. You need to have a well-coordinated plan to collect e-waste materials from different sources.

Reach out to local electronic manufacturers and e-retailers and tie up with them for procuring the e-waste materials. Also, make arrangements with small and large business houses that create e-wastes. It is advised to appoint collection centers in strategic locations for easy procuring of e-wastes.

Also, do not forget to have sufficient space to store those collected e-waste materials.

8. Have a Marketing Plan

There are a lot of companies looking to sell e-wastes in India. You need to reach out to them both online and offline.

It is extremely important to have an effective marketing plan for the overall success of an e-waste recycling business.

Create a website and mention the type of services offered, company profile, and contact details. Also, promote your e-waste recycling facilities on social media platforms like Facebook and Twitter. Publish advertisements in local newspapers and industry magazines. Trade shows and exhibitions are also good places for promoting your services.

It is without saying, starting an e-waste recycling business in India is not only profitable but also rewarding. However, it is challenging too. You will need to do proper planning to be successful in this venture.