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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Contact : +91 7526000333, 444, 555
 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 75,000
HP
Blade (300-400 18 Inch 25HP 3,00,00
kg) 0
Blade (1 tonne) 40 Inch 80 7,50,00
HP 0
Dust cleaner Drum (faddu) 24 Inch 20 1,50,00
HP 0
Drum (zhadu) 8 feet breadth 20 1,50,00
HP 0
Conveyer Boat type Plant 4.5 by 12 3 HP 2,00,00
feet 0
Round Drum 4 by 4.5 feet 30 1,80,00
Washin HP 0
g
Dryer(Hydro) Drum 24/28 3 HP 90,000
Film Dryer 200 MM 20 2,50,00
HP 0
Mixer Drum 24by24by12m 30 1,50,00
Machin m HP 0
e
Agglomerate Drum 24by32by12m 50 2,50,00
d plant m HP 0
Recycling Recycling 100 by 25 8,50,00
Material 80mm HP 0
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 &registration

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. Activit Time

y Required
(in Months)
1 Acquisition Of premises 1
2 Construction (if Applicable) 1- 2
Months
3 Procurement & installation of Plant & 2
Machinery
4 Arrangement of Finance 2
5 Requirement of required Manpower 1
Total time Required (some activities shall 4-5 Months
run 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
Raw Capacit 282,353
Material
y 100%

Capacity Rate per Kg Amount

Raw Material
Consumed Utilisation (Rs. in lacs)

1st Year 50% 10.00 14.12

2 nd
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 141,176 155,29 169,41 183,52 197,64 211,76

4 2 9 7 5
Output per 120,000 132,00 144,00 156,00 168,00 180,00
annum 0 0 0 0 0
Op Stock - 4,800 5,280 5,760 6,240 6,720

Production 120,000 132,00 144,00 156,00 168,00 180,00

0 0 0 0 0
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 8.15

Contribution 21.45

Bank Loan

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

Total 80.64 94.69 106.20 118.20 130.67 143.62

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 0.33 0.33 0.33 0.33 0.33
Capital
2.90
rent 1.80 1.98 2.18 2.40 2.64
4.31
Selling &Adm Expenses 2.42 2.84 3.19 3.55 3.92
Exp.

TOTAL 10.90 12.42 13.03 13.73 14.37 15.39

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 0.70 0.20 0.20 0.11 0.12 0.13
lib

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 - 9.15 16.78 28.21 42.78 57.74

Balance Add: Surplus 9.1 7.64 11.43 14.57 14.96 22.91

Closing Cash & Bank 5 16.78 28.21 42.78 57.74 80.65

Balance
9.15
COMPUTATION OF CLOSING STOCK

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year 6th year

Finished Goods

(12 Days 2.45 2.68 2.93 3.21 3.51 3.68

requirement)
Raw Material

(12 Days 0.56 0.64 0.72 0.80 0.89 0.98

requirement)

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 & 3.00 3.00

VII)

3rd Method

PARTICULARS 1st Year 2nd year

Total Current Assets 15.39 25.78

Other Current 1.08 1.33

Liabilities
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 & 3.00 3.00

VII)
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
 DISCLAIMER

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