Do you want to start an e waste recycling business with small capital investment? Find here a detailed electronic waste recycling business plan sample checklist for the entrepreneurs.
E waste stands for electronic waste. Generally, the electronics items which we can reuse, recycle, resale or dispose of are the potential e-waste items. Nowadays, e-waste includes a wide list of materials. Such as computers, office electronic equipment, entertainment device electronics, mobile phones, television sets, air conditioner, and refrigerators. Broadly, it includes display units (CRT, LCD, LED monitors), processors (CPU, GPU, or APU chips), memory (DRAM or SRAM), and several audio components.
These days, e-waste is a burning issue both in the developing and developed countries. The stock of e-waste is growing very fast. Therefore, this creates a requirement for effective recycling. Basically, the explosive growth of the electronics industry is the major reason of escalating the issue of the landfill. Additionally, the reduced life spans of electrical, electronic and consumer electronic devices are generating large e-waste.
E waste Recycling Industry Potential
Basically, the growth of E-Waste market is supplemented by the growing need for upgrading to the latest technologies. A desire towards the adoption of new technologically advanced devices leads to the generation of millions of tons of E-Waste across various regions.
Especially mobile devices, televisions and computer devices are experiencing fast growth across the world. With increasing purchasing power and rising trend of disposable income, the sale of these electronics devices is increasing continuously.
In addition, the new product launches with updated features and additional services are attracting the customers to upgrade their old products with new products. This has reduced the lifespan of these devices to about 3-4 years.
Thus, this is adding more and more e-waste at a tremendous rate. Therefore, the ongoing sale of electronics products provides a lucrative environment for e-waste management in the coming years.
Why Is E waste Recycling Important?
- First of all, e-waste contains a huge amount of precious metals. And we can use those metals after the recovery from the scrap.
- Recycling the e-waste helps to manage the solid waste effectively.
- Actually, old electronic devices contain toxic substances such as lead, mercury, cadmium, and chromium. And these are tremendously harmful to the environment. Therefore, proper processing of e-waste is essential.
- Nowadays, e-waste contributes to more than 70% of the environmental pollution. And only recycling of e-waste can reduce the environmental pollution.
Licenses & Permission for E waste Recycling Business
Starting an e-waste recycling and processing activity demands the different type of permission and licensing from the Govt. authority. However, the specific requirements may vary to the state to state. Here we have compiled some of the basic necessities.
- First of all, apply for the Udyog Aadhaar MSME registration. You can apply this online.
- After that, apply for the ‘consent to establish’ permission from the state Pollution Control Board. For applying, you have to submit several documents. The list includes Site plan/index, Topographical Map, Detailed plant layout including DG set capacity in KVA, Process Flowsheet, Details of water pollution/air pollution control systems, SSI Certificate or NOC from Directorate of Industries, Consent fees in form of DD in favor of the state PCB, local Body NOC and Undertaking on 20 Rs stamp paper or CA certificate about proposed investments
- If you want to import the scrap, you will need to have the permission from environment ministry to import e-scrap. Additionally, you can obtain detailed procedure from CBEC (Central Board of Excise and Customs).
E waste Recycling Business Model
In starting the business, it is important to create an effective business model. And creating a right business model is the make or break aspect in this business. As far as operation is concerned, you can break the overall activity in several steps. These are collecting the devices, processing the scrap and finally, getting the money in exchange of the components.
According to your investment capacity, it is important to determine the operational areas of your e-waste recycling business. If you don’t want to collect the devices from the mass population, then you have to depend on the scrap collectors (Kawariwala). However, collecting the scrap from the users ensures better margin along with brand awareness.
Investment for E waste Recycling Business
An e waste recycling business demands substantial capital investment. First of all, you have to put the investment for getting necessary permissions and licenses. Additionally, you have to secure a space for operation with a dump yard. The processing operation demands different equipment and tools. You have to hire skilled and professional manpower. And finally, you have to take care of the daily basis expenses related to the operation, marketing etc.
10 Steps for Starting E waste Recycling Business
- After you decide to start the e-waste recycling business, check Google. Check the established e-waste recycling company websites for getting the knowledge of their style of operation.
- Create a brand name, a catchline, and a logo. These are all mandatory these days for operating a business successfully.
- Register your business. Have the all necessary licenses and permissions.
- Secure the space. Check the availability of commercial electricity and water. You must have a dumping yard. It is advisable to secure the space in an industrial area. Though it is not mandatory, it eliminates different social and political hazards.
- Prepare the business model and create your company website. If you want to target the end consumers, then you can offer an instant quote facility for the devices. Additionally, you can offer free pickup facility and instant cash payment facility.
- Determine the territory. It is very crucial when you collect the devices from the consumers. Because the distance is an important aspect in calculating the unit cost and net profit. Additionally, your consumers must know in which specific city your service is available.
- Craft a marketing plan carefully. No business can be successful without an effective marketing plan. And in today’s digital world, you must concentrate at digital advertising.
- Procure the essential equipment and tools for the operation.
- Hire experienced and skilled manpower. Broadly, you have to hire employees for the processing, admin operation, pickup, and delivery facility and for marketing.
- Finally, you must have the right software for leak proof operation. E-waste recycling is a heavily detailed oriented business. Therefore, you must have an integrated system for better monitoring and control the business.