Environmental

How to Set up PET Bottle Recycling Business in India?

Introduction

The PET (Polyethylene Terephthalate) is a type of plastic that is light-weight, durable, transparent, recyclable and is made up of one of the most common polymers in its polyester family. The PET bottles are commonly used in the packaging of various liquids, such as beverages. The PET bottles are also known to be the most recycled plastic, and these recycled PET (rpet) are made into a variety of products and can be recycled again and again. Plastic pollution is one of the urgent environmental concerns in today’s world, as a large amount of plastic ends up in landfills and oceans, which can contaminate the soil and water.

Since plastic is slow to decompose, it takes hundreds of years to break down when it ends up in the landfill; these larger plastics can break down to microplastics, which can in turn enter the food chain and cause human health issues. In 2025, India’s plastic waste pollution is still a concern due to the constant use of plastic in the country. Therefore, the plastic recycling business in India can be a thriving business and also help the country fight against plastic pollution.

What is a PET Plastic?

Polyethylene terephthalate, commonly known as PET plastic, is a type of polyester that is a synthetic resin. The PET plastic is majorly used for bottle production. The Polyethylene in its natural state is opaque and when the terephthalate is added it gives the pet bottles a glossy transparent finish. The PET plastic is known for its strength, lightness and recyclability. The PET plastics are the most recycled plastic in the world and it is also an FDA approved plastic that is safe for food and beverages.

Market Potential by 2030

In 2023, the annual market for the PET recycling business was around INR 2,500-3,000 crore (USD 300-350 million). Therefore the PET bottle recycling business is showing a promising future with the recycling industry market expected to reach USD 6.93 billion by 2033 and grow at a CAGR of 12-15% over the next 10 years (2025-2035), this growth is supported by government policies such as Swachh Bharat Mission and Extended Procedure Responsibility EPR, actively promoting waste management and recycling to make brands and businesses commit to using more recycled PET in their packaging to further boost the recycling market of India.

What is a Plastic Waste Recycling Plant?

A plastic waste recycling plant is a facility to recycle plastic waste; it involves a process of recycling plastic to transform it into new products or materials. The process will involve the collection of waste, sorting the plastic waste, cleaning and washing, then shredding, granulation and melting of the plastic granules to moulding it into new products.

The new recycled products can be plastic bottles, containers and recycled packaging. Plastic waste recycling plant thereby creates a sustainable future and improves the environmental impact of plastic pollution.

Plastic Waste Management Amendment Rules, 2025

The Ministry of Environment, Forest and Climate Change (MoEFCC), on January 23, 2025 implemented the Plastic Waste Management (Amendment) Rules, and updated the Plastic Waste Management Rules, 2016. The three major updates are:

New Requirements for Marking and Labelling (Rule 11)

The first major update is for the marking and labelling in Rule 11. Starting from 1st July, 2025 all the plastic manufacturers, producers, importers and brand owners will have to include specific information on the marking and labelling, which you can include through these three ways:

• QR code or Bar code: The QR code or bar code will include the important information that can be printed on the plastic packaging. 
• Product Information Brochure: A product information brochure can be added as an extra with the packaging.
• Unique Number: The packaging can include a unique number under relevant rules, only if the rules 11 have been complied with.

Notification to the Central Pollution Control Board (CPCB)

The Central Pollution Control Board (CPCB) must be notified by the producers, importers, and brand owners about which method they will be using for the marking and labelling of plastic. The CPCB will maintain and post the list of companies complied with the updated rules on their website and the list will be updated quarterly.

New Rule on Penalties for Non-Compliance (Rule 19)

Rule 19 is introduced in the amendment, which states that if there is non-compliance with any of the Plastic Waste Management Rules. Any individual who fails to comply with the new amended rules will be liable to a penalty according to Section 15 of the Environment Protection Act.

How to Set Up PET Bottle Recycling Business in India?

The PET bottles are widely used all around the world for beverages, and therefore, there is a constant increase in the use of PET bottles. Therefore, to reduce the plastic bottles ending up in the landfill or the ocean, we must reduce the use of plastic bottles and recycle the ones available. If you are someone who cares for the environment and has the capacity to open a PET bottle recycling business in India, you must follow certain steps, which include:

• Conduct Market Research

The first step in setting up a PET bottle recycling business in India is to conduct market research. Identifying the main sources of PET bottle waste, such as scrap dealers, shopkeepers, waste collectors, or bulk plastic waste generators like malls and restaurants. Conducting research on your competitors and potential buyers for the new materials will help you understand the demand and fill the market gap.

• Choose Your Business Model

Choosing your business model on whether you will do the recycling business, focusing on collection, sorting, processing or completing the entire recycling process, will be important to make a proper business plan. This decision will help you to plan your investment requirements and operational structures.

• Make a Business Plan

Making a business plan for your PET recycling business is mandatory as it helps you organise your business. The business plan will include your financial and operational planning.

• Register Your Business

For your PET bottle recycling business, you will have to register with the Central Pollution Control Board (CPCB) and with the State Pollution Control Board (SPCB). You will have to apply for a business PAN card, GST number and a local trade license, and register your business with the Ministry of Corporate Affairs (MCA). You must also register for the Extended Producer Responsibility (EPR) to monitor the plastic waste.  

• Land and Infrastructure

Opening a PET bottle recycling centre in India will require finding a separate place where you can store the waste with good access for transportation. The land will be used for storage, machinery installation and operations. The required land size depends on the size of the recycling operations. A small-scale recycling plant will require a few hundred sq. feet, and a large-scale recycling plant will require a few thousand sq. feet, in an industrial area.

• Install Machinery

Invest and install the necessary machinery for shredding, washing, cleaning, granulation, and pelletizing of PET waste. The machinery should be energy efficient and meet the mandatory EPR compliance. Installation of the safety systems, treatment plants will also be required to ensure monitoring of the emissions.

• Hiring and Training of Manpower

Once your PET bottle recycling plant is established, you will have to hire and train the manpower for different operations such as collection, sorting, washing, and different machine operations.

You will also be required to employ skilled and educated employees to run the recycling business and also recruit marketing and sales experts for the new recycled products. You must also provide hands on technical training to operate and manage the PET bottle recycling machinery and safety training for handling the recycling plant.

• Set Up Collection Channels

The first step to setting up a PET bottle recycling centre is to set up collection channels because a consistent and reliable supply of raw materials is important. Partnering with the local waste pickers, NGOs, scrap vendors, and large waste collection centres will be beneficial. Establishing collection centres within the city in high-waste locations is also necessary.

• Ensure Quality Control and Packaging

Ensuring quality control and packaging for your PET bottles recycling plant is mandatory to ensure that the business operations comply with the environmental regulations and follow Plastic Waste Management rules (PWM).

Removing the label, caps and cleaning the contaminants from the PET bottles before recycling is important to ensure quality control. The packaging of the recycled PET granules must be properly packed before sales, with important information on the labels.

• Market Your Product

Once the recycled products and materials are ready, you can market your products in different industries. You can promote the products as recycled PET products and materials highlighting the sustainable practices. The target industries for recycled PET materials are textile industry, construction, and packaging industry.

•  Monitor the Sustainability and Efficiency

Monitoring the sustainability and efficiency of the PET bottle recycling plant is essential for running an environmentally conscious business. Regularly conducting the environmental impact assessment (EIA) for your recycling business, keeping a check on the water usage, energy consumption, and investing in energy-efficient machinery can help monitor your recycling business in India.

The Process of Recycling Plastic

The recycling of plastic includes the following certain steps, such as:

• Collection of waste
• Sorting of different plastic waste
• Shredding of the plastic
• Washing
• Melting
• Pelletizing

Capital Required for PET Bottle Recycling Business

• The capital required for the pet bottles recycling business in India is:
• 5 to 50 lakhs for setting up the recycling plant, including the land, construction, licenses and permits, and other infrastructure costs.
• 2 to 5 lakhs for licensing and other legal approvals
• 3.5 to 35 lakhs for the required machinery, depending on the type and size of machinery required.
• 1 to 2 lakhs monthly for the ongoing operations, such as utility bills for electricity, water, transportation, labour, technicians and other miscellaneous expenses.

Funding Options for PET Bottle Recycling Business

The funding options for the PET bottles recycling business in India can be done through the following ways:

• Self-funding and Bootstrapping
• Bank Loans such as MSME loans, Mudra loans,
• Government grants such as Start-up India, SIDBI, and CPCB Plastic Waste Management provide support.
• Venture Capital/ Investors
• Crowdfunding

Expected Revenue for a PET Bottle Recycling Business in India

The expected revenue for a PET bottles recycling business in India by selling the recycled plastic such as plastic granules and pellets by producing and processing 5-10 tons/day, and selling it for ₹50-120/kg, your monthly revenue can be estimated at ₹15-50 lakh. You can expect a gross profit margin of 30–50% within 1.5 to 3 years, during the break-even period.

Types of Plastic Recycling Machines

Plastic recycling in India requires different types of machines, which transform the plastic waste into new products, and there are different types of plastic recycling machines in India, which include:

• Shredders: A shredding machine is a plastic recycling machine that involves the process of breaking down or shredding the plastic into smaller pieces so that the shredded plastic can be easily processed by other recycling machines. This process reduces the energy consumption and thereby reduces the carbon footprint in the recycling process.

There are two types of plastic shredders, which include:

1. Single Shaft Plastic Shredders

2. Dual Shaft Plastic Shredders

• Plastic Granulators: A granulator plastic recycling machine, are an advanced machine compared to the shredders. The granulator shreds the plastic into uniform sizes that is granules therefore making the recycling process more efficient. The shredded plastics are fed to the granulator chamber, which includes a high-speed rotor with sharp blades, ensuring a uniform granulation of plastic. These granules can then be used to create new products.

There are three types of Granulators for plastic, which include:

1. For Hard Plastics such as HDPE and ABS

2. For Soft Plastics such as LDPE films

High-Capacity Granulator for large quantity processing

• Extruders: A plastic extruder is a plastic recycling machine that is used to melt the plastic waste to transform it into a new product. The extruder work by heating the plastic to make it into a molten state and the molten plastic is then pushed through a die and creates into a new shape. The extruder plastic recycling machines are commonly used for making pipes, films and sheets.

• Plastic Washing Lines: A plastic washing line is a plastic recycling machine that is used to produce high-quality recycled materials. This machine helps in removing the contamination before further processing. This process improves the purity of the plastic and also helps reduce energy consumption.

There are two types of plastic washing lines they are;

1. Rigid washing line for hard plastics such as bottles and containers

2. Film washing line used for plastic films and flexible packaging plastics

Licenses Required for PET Bottle Recycling Business

The licenses required before setting up a pet bottle recycling business in India are:

• Company incorporation
• Authorisation from SPCB and CPCB
• GST Registration
• Registration under PWM (Connect with the team for full documentation)

Documents Required for PET Bottle Recycling

The documents required for a pet bottle recycling business in India are:

• Company incorporation certificate (for private ltd/ public ltd)
• GST Certificate
• Authorized signatory Aadhar card
• Authorized signatory PAN card
• Electricity bill
• Layout bill
• Water bill
• Memorandum of Association (for private ltd/ public ltd)
• Topography map
• Rent agreement/ property paper

Documents Required for Manufacturing of Plastic Raw Materials

The documents required for manufacturing of plastic raw materials in India are:

• Valid CTE and CTO
• GST Certificate
• Aadhar Card
• Pan card authorized signatory

Compliance for PET Bottle Recycling Business

The regulatory authority for PET bottles and plastic recycling in India is the Central Pollution Control Board (CPCB).  The CPCB implements, monitors and ensures that the industries are in compliance with the Plastic Waste Management Rules, which aim to reduce plastic waste.

Through its centralised EPR portal, the authority also manages the Extended Producer Responsibility (EPR) for plastic packaging and PET bottles. The regulatory body of the Food Safety and Standards Authority of India (FSSAI) also regulates the use of any recycled PET materials for food packaging.

Benefits of Starting a PET Bottle Recycling Business in India

Recycling PET bottles is an important sustainable practice to help fight plastic pollution in India. Starting a business to recycle plastic waste can contribute to a better tomorrow and also create job opportunities for people while preserving the environment for future generations. Starting a PET bottle recycling business in India offers various benefits such as:

• Establishing a PET bottle recycling business will reduce the PET bottles ending up in a landfill, therefore minimising plastic waste.
• This will promote a sustainable lifestyle among the people.
• The reduction in plastic bottle pollution will, in turn, decrease pollution.
• Recycling the PET bottles will reduce the need to source raw materials for the PET bottles, such as petroleum and natural gas, and preserve resources.
• Recycling reduces the energy consumption as making new plastic requires higher energy consumption compared to recycling the plastic into new materials.
• Recycling of PET bottles also reduces the emission of greenhouse gases compared to producing new plastic products.
• Starting a plastic recycling centre also helps create job opportunities in collection, sorting, processing and manufacturing.

Summing Up

Plastic pollution is a constant environmental problem for India as the country generates 26,000 tons of plastic waste annually. Even though we have an excellent recycling percentage of 95% for PET bottles, the amount of plastic generated is still far too high for existing solution systems to manage effectively, leading to widespread pollution and environmental degradation. Therefore, there is an impressive market for PET bottles recycling business in India, driven by both environmental necessity and strong demand for recycled materials.

At Enterclimate, we believe that as citizens, it is our responsibility to leave a positive impact on our environment, and that is why we offer comprehensive environmental compliance services for your business and help you build a PET recycling centre that operates responsibly with a commitment to sustainable practices.  

Why choose Enterclimate?

Enterclimate is an organization of repute that offers consulting and compliance management solutions. We also work closely with the government officials and offer quick and customised solutions for the compliances required for your business. We have a team of environmental experts, legal advisors and business consultants that can cater to your business needs. With more than a decade of experience in compliance and advisory, we at Enterclimate are here for you.

Contact us today to speak with our environmental and business experts or visit our website https://enterclimate.com to learn more.

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