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How to Start Plastic Granules Business in India?


Are you looking to start a profitable business in India?

Look no further than the plastic granules industry. 

With a rapidly growing demand for plastic products, the market for plastic granules is booming. But where do you even begin to launch your own plastic granules business? 

That's where this step-by-step guide comes in. From sourcing raw materials to marketing your products, we will walk you through everything you need to know to turn your passion for plastics into a successful business venture. With our expert advice and tips, you'll learn how to navigate the Indian market, find reliable suppliers and buyers, and optimize your production process for maximum profit. Whether you are a seasoned entrepreneur or a first-time business owner, this guide will help you own a plastic granules business in reality.

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What is meant by Plastic Granules?

Plastic granules are small pellets emerging from various raw materials. They are derived from the thermoplastic used by the manufacturer in the production process. These granules are produced by melting down plastic resins and extruding them into small pellets of a consistent size and shape.

It then undergoes a process that entails cleaning plastic products that are installed in the cutting machine, which reshapes them into smaller pieces. Such pieces are then shifted to the extruder, and that is how it is melted to produce granules lumps. After which, these lumps find a way to the grinding machine that Produces granules of varying sizes.

What are the Types of Plastic Granules? 

There are types of plastic granules available that carry their uses and properties. 

The following are as follows- 

  • Acrylonitrile Butadiene Styrene (ABS) granules
  • Polyethene (PE) granules
  • Polyvinyl Chloride (PVC) granules
  • Polystyrene (PS) granules
  • Polypropylene (PP) granules

What are Plastic Granules used for? 

Plastic granules are of higher value and versatile and employed for various purposes, such as automation, packaging, and construction. They can manufacture multiple things and have other such uses, which are-

  • Plastic Granules for packaging, plastic products, carrying sacks, and bags.
  • They are employed in automotive, microchips, and car production. 
  • Plastic granules are utilized in household items other than plastics.
  • It can be seen in fitting and pipe systems. 

What are the Advantages of Plastic Granules?

Plastic granules are small, uniform pellets used as raw materials in producing various plastic products. It is adopted for a variety of purposes because of its exceptional properties. Let us have a look over it-

  • Durability:- Plastic granules are highly durable and can be transformed per the applications or intent of use. In addition, it is long-lasting, which makes them ideal and Useful.
  • Cost-effective:- One of the most famous advantages of plastic granules is making them cost-effective. It is inexpensive compared to the other raw materials involved in the process. 
  • Versatility:- Plastic granules can be molded accordingly to produce a wide range of products with different characteristics. 

From Raw Materials to Profit: A Step-by-Step Guide to Launching Your Plastic Granules Business in India

If you wish to start a plastic granules business in India, then it is a purposeful venture to rely on. Let us look at how we can get started-

  • Research & plan:- Before beginning any Venture, you require comprehensive planning and research. Within this, one needs to identify their target audiences and potential consumers with their needs. Compare with your competitors, analyze the performance, and know where to improve. 
  • Business plan:- You require a business plan in place, one that will highlight your goals and Objectives while helping you gauge a long-term vision involving other factors such as financial projections. 
  • Legal compliance:- Undeniably, to start a venture, like a plastic granule business, compliance with legal requirements is necessary to fulfil the said criteria. With this, you need to register as a business first, then obtain the licenses & permits from the authorities. Ensure that you comply and stick to the plan of Action. Moreover, as an eco-friendly venture, your business needs to fulfill environmental standards regarding pollution control or waste Disposal. 
  1. You require a Business registration certificate.
  2. Factory license
  3. Fire NOC
  4. Consent NOC
  • Choose the location and type of equipment:- Once you have completed the necessary steps of establishing your granule business, you need to hunt for a good location that is accessible and easy to navigate. In addition, you might require a set of equipment and high-quality machinery that will support the process.
  • Hire Staff:- For a business to run smoothly, you need Staff, including experienced employees who carry enough knowledge on operating the machinery and the types of equipment. 
  • Develop a marketing strategy:- It is one of the essential components in operating any business; in its absence, the entire venture would run futile. Have an effective marketing strategy in place, one that helps you attract customers and benefits the business. Encourage mending relationships with your customers by addressing and dealing with their concerns. 

Hence, these factors will encourage you to start planning from scratch while helping you build a plastic granule business. 

Plastic Granule Manufacturing Process 

Plastic granules are tiny plastic particles that are used in a wide range of applications. These granules are made from various plastic materials, such as polyethylene, polypropylene, and polystyrene. Nonetheless, the manufacturing process of plastic granules involves several steps; these are the following-

  • In the first step, we gather waste material and separate it based on type, composition, strength, and quality.
  • Clean the plastic thoroughly to remove any dirt, adhesives, tapes, or other materials. Use specific chemicals mixed with water to eliminate these substances. 
  • Shred the plastic into smaller pieces or pellets via a cutting machine. 
  • The cut pieces are inserted into an extrusion machine, where they are melted to form clumps of granules. These clumps are then processed in a grinding device to achieve the desired granule size and packaged in bags of 50 kgs. And 100 kgs. For transportation to plastic processing facilities. And such a process dictates the Plastic Granule Manufacturing Process. 

What are the functions of the Plastic Granule business?

The Plastic Granule Business is a vital component of the plastic industry. The function of the plastic granule business is to produce and supply plastic granules to manufacturers who use them to make various plastic products. 

The plastic granules business consists of necessary functions that are as follows-

  • Waste Management:- Wastewater comes as sewage waste in the plastic granules business. Some detergents are designed to clean surfaces and insides of plastic containers, bottles, etc.
  • EPR certificate:- The EPR (extended producer responsibility) certificate is a must-have for producers if they consider establishing An EPR (extended producer responsibility) business. PWP would trade EPR certificates for the waste as they process it in return for the PIBO's obligation to recycle plastic waste.

Demand for Plastic Granules in the Indian Market 

According to Statist, 32 percent of thermoplastics in India were polypropylene (PP) in the financial year 2022. It was followed by high-density polyethylene (HDPE), with a 15% market share. The Indian market accounted for six percent of the global plastics demand.


Plastic granules are needed in the manufacturing processes of plastic products. But you can only accelerate your business with the Right guidance. In addition, there is also a good scope for growth, especially for this business type.

Also, starting a plastic granules business in India requires planning and execution. You should conduct thorough market research, register your business, choose the right location, arrange finance, purchase equipment, hire skilled workers, and market your business. With the Right strategy and Hard work, you can build a successful plastic granules business in India.

This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not corpseed, and have not been evaluated by corpseed for accuracy, completeness, or changes in the law.


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Hansika Bhardwaj is a versatile writer, editor and poet.  She is a graduate of the University of Delhi with a specialisation in English Literature. As a cherry on the cake, she has worked with various companies dealing with various types o...

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