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Muskaan Verma
| Updated: 23 Jun, 2022 | Category: Waste management

How to Set Up Plastic Granules Business?

How to Set Up Plastic Granules Business?

Plastic or polyethene has become an essential part of everyday life. They are used to make a majority of the products that we use in daily life, right from toothbrushes to face masks. Plastic essentially includes any substance formed in a soft state and used in the solid-state. Based on the molecular structure of plastic, it is divided into two categories thermoplastic which includes material which can be recycled, for example, Plastic Granules and thermosetting plastic, which is non- recyclable. Plastic manufacturing industries or plastic granules business in today’s world dominates the global market, constituting the majority of the world economy. 

Plastic Granules and Their Types

Plastic granules are a form of thermoplastic or recyclable plastic made into grain-like material about 3mm in diameter, which is used by manufacturers or producers as a raw plastic material for plastic recycling plants or the plastic processing industry. It is used as bulk goods similar to sand or gravel, making them easier to transport. 

Plastic granules are classified into various types:-

  1. Polypropylene granules (PP granules)
  2. Polyethene granules (PE granules)
  3. Electret masterbatch
  4. Polystyrene granules (PS granules)
  5. Polyvinyl chloride granules (PVC granules)

Nowadays, due to the shortage of natural resources like petroleum and the Gulf crisis, as well as increasing conscience among people for environmental manufacturing of reprocessed granules in plastic granules business is becoming increasingly demanding. 

Market Overview of Plastic Granules Business 

The plastic granules businesses have seen consistent growth due to rising financial aid in research and development, new innovations, effective allocation of resources and growing competition resulting in better quality. Along with this, proper legislation and policies, as well as government support, have determined the further growth of the plastic granules business in the foreseeable future. 

The major corporation in the market for Plastic granules business includes Dar Al Khaleej Plastics, Wiwat Plastics, Balaji Plastics, Nahata Plastics, Tejes Plastics, Vanshika Plastic Industry, Shakti Plastic Industry and Navkar Industries.

Process of Manufacturing Plastic Granules 

The process of manufacturing the granules starts from the collection of different plastic waste from different formal sources and segregating them as per grade, colour and quality. Then these wastes are further cleaned and washed to get them ready for further processing, which includes putting them into cutting machines and converting them into smaller pieces. Further, these pieces are melted into granule lumps which are put in a grinding machine to obtain granules of appropriate size. 

Requirement for Setting up Plastic Granules Business 

Land 

The size of land required for setting up plastic granules business depends upon the scale of the plant. For example, if the plant to be set up is small, 50 sq. feet is sufficient enough, but if the plant to be set up is big, then the required land can range from 200 to 500 sq. feet. Along with sufficient space, the land should have proper shade and different rooms for different requirements, including technical room, restroom etc. And clean and closed space for properly operating machines with proper ventilation.

Utility 

After securing proper land and space, it is important to enquire about proper utility, which includes proper machines, including recycling machines, whether large scale or small scale, generators etc. The type of machines also depends on the type of plastic being recycled. 

Technicians and Labours

An efficient Workforce is an essential part of setting up any business. Therefore, it is very important to hire technicians with proper experience and knowledge about the recycling process and the product. 

Documents required by the Recyclers or Manufactures for Setting up Plastic Granules Business 

 Documents required for registration for Recycler

  1. Copy of valid Consent to Operate.
  2. Copy of certificate of registration issued by the District Industries Centre or Ministry of Micro, Small, Medium Enterprises.
  3. Supporting documents related to details of plastic waste acquired from, i.e. type of waste, waste acquired from and qty.
  4. Manufacturing process flowchart & Description.
  5. Details of Pollution Control devices.
  6. Photograph of the unit/production site.
  7. Details of worker/ staff/ management, i.e. Number, Age, Educational Qualification, and Experience.
  8. Copy of Annual return submitted to local body and copy of online Annual return submitted to MPCB (in case of renewal of registration)

Documents required for registration for Producer/ Importer/ Brand owner

  1. Copy of valid Consent to Operate.
  2. Copy of certificate of registration issued by the District Industries Centre or Ministry of Micro, Small, Medium Enterprises.
  3. Manufacturing process flowchart & Description.
  4. Details of Pollution Control devices.
  5. Photograph of the unit/production site.
  6. Supporting documents related to details of Plastic packaging supplied to/ Acquired from viz. The industry name, type of plastic packaging and qty.
  7. Copy of EPR plan endorsed by Urban Development Department.
  8. EPR compliance report (in case of renewal of registration).

Procedure for Registration of Recyclers or Producers for Setting Up Plastic Granules Business 

The procedure for registration from the State Pollution Control board or Central Pollution Control Board is stipulated under Rule 13 of Plastic Waste Management Rules, 2016[1]

  • Firstly, all the recyclers/producers are required to create an industry registration ID with the State Pollution Control Board through their official website, including submitting a registration form with details of the plant and manufacturer. 
  • After this, the business has to apply for registration under the respective category with the necessary documents mentioned above. 
  • Further, when registration is done, the recycler/manufacturer is required to login into the system and fill Form 1 (in case of producer) or Form 3 (in case of Recycler)
  • After this is completed, the committee constituted will take the decision to accept or dispose of the application. 
  • Once the registration is issued or cancelled, depending on the committee, the status along with a copy of the letter will be reflected in the industry login ID and on the state control board’s official website. 

EPR Authentication/ Registration

Before EPR registration, the state pollution control board or pollution control committee should not renew the registration of the stakeholder unless they have an action plan authorized by the Secretary in the change of urban development of the concerned state or union territory for the setting of plastic granule business. 

Documents for EPR Registration

  1. Aadhar card of the authorized person
  2. PAN copy of the authorized person
  3. GST certificate of organization
  4. Rent/lease/ proof of ownership
  5. Factory license/trade license
  6. Electricity bill
  7. Layout/plan of the unit
  8. CIN(certificate of incorporation) in case of company/LLP
  9. Memorandum Of Association (MOA)
  10. Articles of Association (AOA)
  11. Board resolution for appointing an authorized person

Procedure 

  1. Firstly, as per the nature of business, the required form is to be filled. 
  2. Then all the required documents are to be attached to the form. 
  3. After the attachment of the document, the form is to be signed by the authorized person. 
  4. After that, it shall be submitted to the concerned state pollution control board. 
  5. At last, if the forms are submitted as per procedure, then the department will grant the certificate. 

Conclusion 

With the constant degradation of the environment and increase in pollution, it is very important for producers and businesses to uphold their responsibility towards the environment. The plastic granules business, if set up properly, can prove to be very lucrative both for the environment as well as the business owners seeing its increasing demand in the market. 

Read Our Article:Opportunities in Reprocessed Plastic Granules Business

Muskaan Verma

Muskaan has completed her BA.LLB and LLM, gaining vast legal knowledge and expertise. She has keen interest in legal research and content writing, having prior experience of publishing numerous research papers in international journals on Environmental Laws and Corporate Laws.

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