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  • Round-the-clock service to help you establish your textile recycling business quickly.
  • Working closely with the authorities and PCBs to streamline the process.
  • Comprehensive help in evaluating all the documents that you may need.
  • Providing regular updates from the start to the very end.

What is textile recycling?

Our obsession with "trending fashion" is undoubtedly never-ending. Clothing is the second largest consumer good and fashion is the second most polluting industry. However, the novel coronavirus pandemic has increased the demand for more reliable and sustainable products.Thus, textile recycling came into the picture. It is an innovation that brings a significant change in the fashion industry. It has been observed that a vast amount of used but wearable clothing goes to landfills annually. Only 12% of the clothing sold across the globe every year is recycled. This sets up a massive platform for the textile recycling business to flourish.

Interestingly, the remaining 88% of the textile waste is downcycled to make products such as insulation. Shockingly, around 10 million tonnes of textiles are trashed every year. The textile waste recycling business involves the procedure of the reuse of old fabric or material recovery from upholsteries or clothes. The product so generated is then reprocessed to get valuable products. 90% of used textiles are recyclable.

What are the different kinds of textile waste?

Two types of fabric wastes are processed in the textile recycling business. The types of textile wastes depend on the place of origin: post-industry wastes and post-consumer wastes. While the former includes by-products of home-furnishing or apparel industries, the latter covers discarded wastes that are no longer needed. However, post-industry wastes are considered the purest because they aren’t contaminated.

Textile Waste Recycling Business treats:

  • Shoes
  • Clothes
  • Pillows or cushions
  • Table cloths
  • Bags
  • Duvets
  • Bedsheets
  • Curtains

General overview of the textile recycling business

According to a report, nearly 82% of what is considered 'textile waste' can be resold and recycled. Thus, it is evident that this can be a massive supply chain (even for the brands). Many big companies are lured into investing a significant share in the mechanical and hydrothermal textile recycling business. The fabric waste recycling market worldwide grew at a CAGR of 19% during 2014-2019.

Types of textile recycling business

The textile recycling business can range from chemical to mechanical to garment recycling. All three businesses are explained in detail below -

Mechanical textile recycling business


It is the most preferred and easiest option to choose. Mechanical textile recycling business involves minimal R&D. Besides, choosing the suitable machine based on the requirements ensures profitable recycling.

The shoddy fibres from the textile waste-processing can be used to make rags, coarser yarns, carpets, filling materials, insulating materials, etc. This can be done by mixing it with some other fibres. But it should be remembered to consider the fibre quality. The reason is that poor-quality fibres decrease the value of reprocessed fibres and can’t be processed to finer yarn.

Garment upcycling/recycling business

The garment upscaling/recycling business converts the waste fabric into valuable products such as fashion accessories, apparel, home decor, etc. This is done via redesigning and reconstructing.

An essential aspect of this textile recycling business is that it can be quickly done. Furthermore, the business requires minimal investments and set-up. But a skilled workforce is an inevitable aspect of establishing this business.

Chemical textile recycling business

The chemical textile recycling business requires knowledge of textile chemistry and materials. The business involves transforming the fibre to the new without downgrading the recycled product. This is done using a chemical process that extracts and differentiates fibres from blends.

The business involves partnerships and massive investments from big academic institutions and apparel companies etc. It further demands proper R&D.

Benefits of textile waste recycling

There is a plethora of ways to establish a textile waste recycling business.

  • Decreases the need for landfill space.
  • Results in 20 % water and energy savings and less pollution.
  • Reduces environmental load and greenhouse gas emissions.
  • Efficiently use the resources.
  • Less chemicals are used, so it is better for the environment.
  • Reduces the demand for dyes.
  • The business can inspire consumers to buy environment-friendly recycled products.

The following licenses are required to establish a textile recycling business –

Factory License

Obtaining a Factory License for establishing a textile recycling business is mandated under the Factories Act of 1948. The following documents are required for the same –

  • A photocopy of the factory building plan
  • Form-1 (Particular Room in The Factory)
  • A detailed list of all directors
  • AOA
  • MOA
  • Board Resolution
  • Partnership deed, if any
  • Bank account details
  • Land deeds
  • Particulars of hazardous and non-hazardous wastes
  • Consent from all authorities
  • Particulars on raw materials
  • Particulars of equipment
  • Tax receipt

GST Certificate

As per the Goods and Services Tax Act, 2017, any business having a turnover of Rs. 40 lakh and above should register for GST. The documents needed for the GST Certificate for the textile recycling business are as follows –

  • PAN card of the owner
  • Owner’s photograph
  • Aadhaar card of the owner
  • Address proof
  • Bank account details
  • Partnership deed
  • Aadhaar card of the authorised signatory
  • LLP proof of registration

Consent NOC

Consent NOC is granted by the Pollution Control Board/Committee in two steps. The Consent No Objection Certificate is usually granted to keep a check on pollution. The two stages are Consent to Operate (CTO) and Consent to Establish (CTE). The following documents are required to get consent –

  • PAN card (if the firm is a partnership/company)
  • Address proof of the authorised person
  • Factory License
  • Authorisation letter
  • Trade license
  • Site plan layout
  • CA letter for total project cost
  • Water Consent/NOC
  • MSME Registration
  • PAN card
  • Aadhaar card

Company License/Registration

The following documents are required in case of obtaining a Company License for the textile recycling business –

  • Address proof
  • PAN card
  • Residential proof

Fire NOC

Getting a Fire NOC from the fire department is important to comply with the requirements of the concerned state authority. Here’s a list of documents needed to obtain the Fire NOC -

  • Model of the building
  • Site plan
  • Fire compliance certificate
  • Registered office address of the textile recycling business
  • Aadhaar card
  • Applicant’s PAN card
  • Outside Photographs of the Building
  • Information related to the building wiring


According to reports, around 17-27% of industrial water pollution is because of textile finishing and dyeing. So, if the textile recycling business involves dyeing or finishing, it needs CGWA NOC for groundwater extraction. The documents required are mentioned below –

Referral letters for new/ expansion industries from constitutional bodies such as the State Pollution Control Board (SPCB) and Ministry of Environment, Forests & Climate Change (MoEF&CC). The letter should include the following -

  • A schematic diagram (flow diagram)
  • CTO issued by the PCB/Industry Department
  • Certificate regarding non/partial availability of water supply
  • Detailed hydrogeological report and recharge plan
  • Consent from local administration for groundwater extraction

Note: Textile processing business, including any emission/effluent generating processes involving dyeing, bleaching, colouring and printing, falls under the Red Category of industries.

The complete process involved in the textile recycling business

The textile waste recycling business involves processing and sorting old fabric, clothes, or unwanted textiles. The end products obtained are ideal for reuse and reselling to generate income.

Here’s the detailed process involved in the textile recycling business -

Space required

  1. Lease or rent a space enough for clothing intake and sorting.
  2. Get the supply of textile waste.
  • You can achieve a continuous supply of textile waste on your own or by contacting Treatment, Storage, and Disposal Facilities (TSDFs). Just make sure the textile waste stays away from moisture.

Note: If the textile recycling business demands storage or disposal, we can arrange a tie-up with the TSDFs.


Manual sorting in the textile recycling business requires experienced workers to distinguish the different types of fabrics easily. After sorting the required fabric, the remaining should be divided into different categories.

  • One category could be those textiles waste that can be transformed into new clothing.
  • A category of fabrics can be one that can be cut down to make industrial wiping rags.
  • Also, another category can be the excellent quality garments that can be sold in the second-hand market.

Removing all rivets and buttons on the clothes is also important. Besides, bulkier items like coats and blankets must be kept separately.

Look out for the right machinery

For setting up the business, you must choose the right machinery like textile shredding and cutting. This is important to transform the left-over fabrics into usable textiles for soundproofing or insulation. Again, the polyester textile waste contains a high percentage of polyethene terephthalate (PET). This can be transformed into clear plastic bottles. But it requires the right machinery.

Setting up the textile recycling business

Further down the line, you can set up your unit to sort the textile wastes, spin them into yarns and transform them into useful clothing.

Market overview of the textile recycling business

According to a report, around 90% of used textiles are recyclable. It is interesting to note that the global textile recycling market touched a value of around US$ 5 billion in 2020. This marks tremendous growth in this field.

How can Enterclimate help you?

Transparency in work

We at Enterclimate maintain transparency in our work. We update our clients on the current status of their work progress and guide them throughout their journey.

Help in arranging tie-ups with TSDF

With our vast network and ten years of experience, we can arrange tip-ups for you with various TSDFs for your textile recycling business.

Liaising with concerned authorities

Our team of professionals keep in contact with the concerned government authorities to get your work done quickly.


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