Tyre Recycling Plant Setup In India

India is one of the largest producers and consumers of automobiles. Tyres are an essential component of automobiles used on a large scale in India but only last a few years. A massive amount of tyre waste is generated when these tyres are worn-out after use for three to four years. This is where the tyre waste recycling plant kicks in. If we look at the prospects, it is evident that the automobile industry will only grow in upcoming years; as a result, tyre waste will also increase over time.

This is an opportunity for those wanting to enter the recycling industry and target tyre waste. To get there, one has to go through lots of compliance, documentation, and market research. In this article, we will cover all relevant aspects of starting a Tyre Recycling Plant Setup in India. First, we will understand the concept of Tyre Waste Recycling and then move on to the requirements, procedures and outcome.

What is a Tyre Recycling Plant?

A tyre recycling plant is a recycling facility that specifically targets tyre waste. It buys used and worn-out tyres from automobile users, segregates the raw materials used in the making of a tyre, recycles them to make them reusable and sells them to manufacturers. This way, the recyclers generate a profit as well as also protect the environment in two different ways-

• Reducing the Tyre waste in the environment and
• Saving costs of production by the use of recycled raw materials.

There is not just one way to use waste tyres but there are multiple ways to utilise the waste tyres and produce different types of end products. Some of the methods used in tyre waste processing are as follows-

• Tyre Shredding for Fuel
• Tyre Recycling for New Tyres
• Pyrolysis Plant for Oil Extraction

Shredded tyres provide solid fuel and the pyrolysis plant provides liquid fuel as the end product. In the process of pyrolysis, the solid waste remains in the filter as the combustion is not cent per cent. Companies also buy the carbon powder obtained by the shredding and cruising of tyre waste. They use it in an appropriate ratio for the raw material of new tyres.

Tyre waste recycling comes with various direct and indirect benefits. It not only generates profit for the entrepreneur but also saves the environment from the stockpiles, dumplings and landfills of tyres. Some of the major benefits of a tyre recycling plant are as follows-

• It prevents the collection of waste tyres in landfills and stockpiles etc.
• It creates a business opportunity from the problem of waste generation.
• It encourages users and bulk users to sell their tyres to a recycling facility instead of dumping them in junkyards.
• It prevents air pollution caused by the degradation of tyres in open areas.
• It prevents soil pollution caused by waste tyres. Waste tyres eradicate the beneficial soil bacteria and degrade the soil which is in its contact.
• When it rains, the rainwater takes the pollutants from the tyres to the rivers and other water bodies which cause water pollution.
• Tyres release methane gas into the air when left in the open so the tyre recycling plant also prevents GHZ emissions, carbon footprint, global warming and climate change to an extent.

Drawbacks of a Tyre Recycling Plant Set Up

The tyre recycling plant is a good opportunity to generate business but it also comes with some drawbacks. Recyclers can avoid these shortcomings with due diligence but some of the major concerns that may be worth considering are as follows-

• The machinery used in the tyre recycling plant is huge and costs a massive amount of money. So the capital investment to start this business is very high which makes it a less attractive option for the entrepreneurs.
• The process used to recycle the tyres involves combustion that releases harmful gas. An unfortunate event of such gas leakage makes the tyre recycling plant operation a risky task.
• The Government of India has classified waste tyres as hazardous waste and provided an extensive legal framework to adhere to. The entrepreneurs involved in this business should follow the full process and compliance otherwise the authorities can take legal action against them.

There is no recycling without waste, so you have to ensure a recurring supply of waste tyres in the plant. For this you may get into agreement with the dealers, companies that generate a large amount of tyre waste, for example- taxi companies etc. You also need to set up the necessary machinery in the plant to process the tyre waste. For this, you have to arrange the finance in advance. Some other points to keep in mind before starting a tyre recycling plant are as follows-

• You must have a sound knowledge of tyre waste management, processing and recycling.
• You must have acquired the tyre recycling licences and tyre recycling plant registration from the appropriate authorities in your jurisdiction.
• You must also get consent and certification for your tyre waste recycling plant.
• You must have experience in the recycling industry to start your own tyre waste recycling plant.
• You must have appropriate funds to arrange the land and buy machinery and raw materials.
• You must have built contacts with the raw material (tyre waste) suppliers and the buyers of material recycled from your plant.

Machinery Required for Tyre Recycling Plant Set Up

There are various steps to recycle waste tyres and at every different step, we need machinery to perform the requisite task. You need the following machinery to use in a tyre recycling plant-

• Tyre Shredder Machine

1. Ring Cutter
2. Strip Cutter
3. Rim Cutter
4. Slice Cutter

• Steel Wire Separator
• Fibre Separator
• Magnetic Separator
• High-Speed Crusher
• Vibrating Screening Machine
• Dust Collector
• Weighing Balers

You have to collect several documents from various authorities at the city, state and central levels to set up your tyre recycling plant in India. These documents are as follows-

• Business Registration
• MSME Registration
• GST and VAT Registration
• Factory Licence
• Labour Licence
• CTE/CTO from the State
• Trade Licence
• NOC (Town Planning, Fire/Electricity, Municipality, Pollution Board)
• EPF and ESIC

You can get the MSME registration from the Ministry of MSME’s Udyam portal if it qualifies for this category and avail of government benefits under the scheme. The labour law department of respective states issues the factory and labour licence. State and Central Pollution Control Boards (SPCB and CPCB) are responsible to grant tyre waste recycling plant authorisation for the set up of recycling facilities. GST and VAT registrations come under the Income Tax Department. After acquiring all these and other mentioned documents you can start operating your recycling business of tyre waste.

An entrepreneur submits various applications for a tyre waste recycling plant to obtain the required certifications. He has to go through the following steps to complete the process of setting up a tyre recycling plant-

How to Complete the Tyre Recycling Plant Registration?

• You should select the type of business entity you want to register. You have to register either a sole proprietorship, partnership, company or any other entity for the business.
• If the business is qualified for the registration as MSME then you should register it under the Ministry of MSME through the Udyam portal of the central government. The businesses are classified as MSMEs based on their investment amount.
• You should complete the GST and VAT registration through respective web portals managed by the central government online for your tyre recycling plant set-up.
• Under this company, You should obtain a factory and labor license. These licenses empower the company to run a factory and hire laborers for it. As per the conditions of the licence, you should comply with all labor law rules.
• You should also obtain the certificate of consent for the establishment and operation of your tyre recycling plant which is mandatory for any commercial industry. You can obtain it online for the tyre recycling plant through the SPCB portal.
• Now, to start the operations of the factory you need raw materials which you have to buy from the suppliers. To purchase and sell the products you will produce or process, you have to obtain a trade license for your tyre recycling plant.
• You should also obtain the tyre waste recycling plant NOC from your municipality, town planning committee, and fire and electricity authorities. The purpose of NOC is to obtain permission from the authorities to perform a particular task which is the set-up of a tyre waste recycling plant in the present scenario.

What is the Tyre Waste Recycling Process?

• You should identify the potential sources of the Tyre Waste and after getting into an agreement with these parties you can create a continuous stream of raw materials to the factories.
• You should develop a transport system for the regular transport of tyre waste from the suppliers to the factory.
• This waste goes step by step through the machinery set up in the plant.
• The shredder machine cuts the tyre waste into smaller pieces. If the machine is not automatic then the workers cut it in multiple steps using a rim cutter, strip cutter, slice cutter and ring cutter.
• The separators and magnetic filter segregate the steel and fiber.
• A high-speed crusher cuts the separated fibre into very small pieces and converts it into powder.
• The weighing balers create packs of the same weight for easier further management.
• To extract the oil, the shredded waste is heated which produces the oil gas.
• This oil gas is condensed to an oily substance that is used as fuel.
• The oil production process also generates steel and carbon black as a by-product.

Which End Products are obtained from Tyre Waste?

• Pyrolysis Fuel Oil:- This oil can be used in industries that have heavy fuel usage like cement, furnace, boiler, casting and steel industries.
• Carbon Powder:- This can either be used as fuel directly or sold to tyre manufacturing companies. These tyre manufacturing companies utilise this powder by including it in the raw material of tyres in a standard ratio.
• Steel Wires:- These steel wires are sold to manufacturers or recyclers where this metal can be melted and converted into raw material for further use.

When calculating the cost to set up a tyre waste recycling plant, the entrepreneur has to consider various heads where the cost will be charged like the land, machinery, raw materials, labour salary, utility bills and fees for legal documents. The cost of land depends on the ownership. If you own the land then the charges will be minimal, if you want to buy then the charges will be maximum and if you want to get it on rent or lease then you have to arrange the monthly cost of rent and security deposit.

Also, this cost will depend on the size of the land. If you have a good number of raw material suppliers then you can start a big plant while on the other hand, if there is no surety of the raw material supplies then you may consider obtaining a small piece of land to set up a small-scale tyre recycling plant. Estimations indicate that the overall cost of starting a tyre recycling plant will be around thirty lakh rupees for a small-scale plant. While this cost may reach around one crore rupees for a big-scale tyre recycling plant. A big part of this goes to the land and machinery. Machinery is also available based on size and functionality. An automatic machine will cost more in comparison to its manual counterpart.

Validity and Renewal of Tyre Waste Recycling Plant Authorisation

There is no such validity or renewal process for the plant itself but the authorities prescribe the validity of tyre waste recycling plant registration, tyre recycling license and permissions obtained during the process of the tyre waste recycling plant set-up. For example, CTE and CTO are granted for a period of five to fifteen years. Similarly, you need to renew your trade licence, labour licence, factory licence and tyre waste recycling plant NOC obtained from the municipality, fire department, electricity department, and pollution control board before the date of expiry. You should submit the tyre recycling plant application for renewal within the stipulated time.

Why Corpseed?

We, at Corpseed, have a team having extensive knowledge relating to various horizons of environmental and business incorporation-related laws and regulations applicable in India and overseas as well as the compliances of running a recycling plant. We perform desk-based research, documentation, and coordination to provide consultation to clients in establishing their businesses and fulfilling the necessities as prescribed by the applicable rules.