Waste management

Licenses and Documents Needed for Plastic Granules Business

calendar16 Feb, 2023
timeReading Time: 4 Minutes
Licenses and Documents Needed for Plastic Granules Business

Plastic granules are the product of thermoplastic material used by plastic manufacturers as raw material for plastic processing industries. An average plastic granule will range from 3 to 4 mm. Any material made from plastic granules consists of at least one thermoplastic product. These plastic granules are easy to store and handle in various industrial operations.

Process Involved In the Production of Plastic Granules

The plastic waste collected from various sources is segregated by colour, type and quality. These collected waste undergo the following process

  1. Segregation: Collection of plastic waste and segregating it for further process
  2. Sorting: In this stage. Plastic waste is separated based on its make and type. Upon collection, the processes can be done physically by the worker or through a machine and transferred to the next process.
  3. Washing: Here, the Plastic wastes are washed to remove impurities and labels for the next stage of the process
  4. Shredding: These washed plastic wastes are pressed into pellets or other suitable forms to reuse.
  5. Extruding: At this stage, shredded Plastic pellets are melted and extruded into filaments or granule lumps, ready to be used for making new products.

After the extruding process, the granule lumps are put into the grinding machine to obtain granules of the required size as per the customer’s need.

Types of Plastic Granules

There are different types of plastic granules based on their input.

  • Polypropylene(PP)

This PP granule is used in manufacturing a wide range of plastic products, such as consumer products, automobile parts, textiles etc.

  • Polyethene granules (PE granules)

PE granules are used to manufacture grocery bags, agricultural mulch, wire and cable insulation, squeeze bottles etc.

  • Electret Masterbatch

This electret masterbatch granule is used in the manufacturing of diapers, sanitary napkins, oil-absorbent mats, wipes, wet tissues, masks, air filtration media and in medicals.

  • Polystyrene granules(PS granule)

PS granules are widely used plastic polymers such as food packing, refrigeration, stationery, Plastic utensils, audio/ video consumer electronics, office equipment, toys and medical equipment.

  • Polyvinyl chloride granules (PVC granule)

PVC granules are one of the most widely used to make products like footwear, pipe fittings, garden hoses, plumbing parts, waterproof gear, toys, food packaging etc.

Where Are Plastic Granules Used?

  • Highly reinforced composites
  • Powder coating
  • 3D printing
  • Powder Coating
  • Home application
  • Food processing industry
  • Infrastructures
  • Any other demanding applications

Licenses/Documents Needed for Setting up Plastic Granules Business

  • Factory Licence
  • GST Registration
  • MSME Registration
  • NOC from the State pollution control board
  • Authorised PAN Card
  • Authorised Aadhar Card
  • Company Incorporation Certificate
  • Registration under Plastic Waste Management
  • FSSAI Certificate
  • DPCC licence

Standard Documents Required For Start-Ups Engaging In Plastic Granules Business

  • Director’s complete proof verification details
  • PAN Card number
  • Written proof related to your official website link
  • Start-up’s incorporation or registration certificate
  • Details about patent and trademark
  • Trademark
  • Articles of Association / Incorporation
  • A Non-Discloser Agreement
  • Employee contracts and offer letters
  • Intellectual Property assignment agreement

Documents Required for Registration as a Recycler for Setting up Plastic Granules Business

1. Copy of valid Consent to operate.

2. Copy of the certificate of registration issued by the District Industries Centre or MSME.

3. Documents related to details of plastic waste.

4. Manufacturing process flowchart & Description.

5. Details of Pollution Control devices.

6. Photograph of the unit/production site.

7. Details of worker/ staff/ management

8. Copy of Annual return submitted to the local body

Documents Required For Registration as Producer/ Importer/ Brand Owner of Plastic Granule Business

1. Copy of valid Consent to Operate.

2. Copy of the registration certificate issued by the District Industries Centre or MSME (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 quantity.

7. Copy of EPR plan endorsed by Urban Development Department.

8. EPR compliance report (in case of renewal of registration).

Documents Required To Obtain NOC

NOC is mandatory for plastic granule businesses. The NOC operates in two stages Consent to establish (COE) and Consent to Operate (COT). The earlier one is at the time of inspection and establishment of business, and the latter is before the unit starts opening.

The documents are:

  • Filled application from concerned SPCB
  • Signed Undertaking
  • Detailed layout of the project
  • Details of the manufacturing process and its end product
  • Required water source quantity
  • Details of machinery
  • Land ownership documents
  • Applicable fee based on the type of process

Scope of Plastic Granules Business

The market for Plastic granules business is enormous as the use of Plastic has been raised due to its comfortable handling, low cost, and surge in the E-commerce industry. Choosing a target customer for the business is an essential part of setting up plastic granules business such as 

  1. Beverage Industry
  2. Packaging Industry
  3. Bottle manufacturers
  4. Construction firms
  5. Government Structure
  6. Medical Equipment Manufacturers
  7. Textile Industry

EPR Process to Register and Comply For Plastic Granules Business

  1. The process starts with registration at CPCB/SPCB by submission of relevant documents required by CPCB[1], which mainly consist of an action plan, agreement, certificates, licenses, etc.
  2. The next step starts with the role of an authorised waste management agency to collect back the agreed volume of postconsumer plastic waste in a period of 1 year from desired location and recycle or dispose of it safely as per CPCB/SPCB guidelines.
  3. The waste collection agency will present relevant documents to prove waste collection activity.
  4. On behalf of PIBO agency will submit a quarterly report to CPCB.
  5. After completion of the activity final report will be submitted by the agency to PIBOs.

Market Strategies to Enhance the Plastic Granules Business

The market strategy plays an essential role in the success of the business. Analysing the market and knowing the competitor’s strength, the product’s value and the demand for the product among the customers will boost the business.

Advertising plays a huge role in marketing a business in a unique manner i.e.

  • Advertising through print media – Ex. Newspaper
  • Advertising through social media – Ex. Blogs, Social Platforms
  • Advertising through Mass media


Plastic granules are the input to the plastic manufacturing industries. These plastic granules come in different shapes and types based on the business’s requirements. A surge in the usage of electronic devices has created a rise in the demand for Plastic granules. Hence the Plastic granules business is profit-making when its potential is fully utilised and cost-effective.

Read Our Article: How To Set Up Plastic Granules Business?

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