Tyre Recycling Business- Requirements, License, Raw Material, Machinery, Investment, Profit, Where to buy Tyre recycling machinery etc

As we know that nearly 250,000,000 tyres are being disposed every year.  It is clear that they are a booming threat to the environment in existing as one of the hazardous solid waste. Instead of letting it to stay as a waste material. This is quite a large amount and this figure also gives confidence for entrepreneurs like you all to make use of it. You can wisely put it into business. Also, the raw material is easily available which makes your costs a measure lesser.

Tyre or tire recycling is one of the good business opportunity which has a huge demand, but very less supply. Indian Government is also supporting this type of business a lot and is coming up with many schemes. This business is in accordance with resource management too. Hence, making it as your side business or main business will definitely gain you decent income. In this article i will share full information about how to start  tyre recycling business by setup Pyrolysis Plant, and also about tyre recycling process, investment, Profit, end products, where to sell end products, etc.

Finding Sources of Used Tires

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Explore within a reasonable driving radius, say 150 miles, to find sources of used tires. Good possibilities include:

• Tire retailers
• Taxi companies
• Car rental firms
• Bus operators
• Trucking companies
• Companies with large car fleets

The three methods of collecting tires are:

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1. Sending vans to a supplier’s location for pickup.
2. Using drop-and-hook, a method that refers to leaving a bulk trailer at the supplier’s location to fill. The trailer is picked up by the recycler when it is full.
3. Encouraging do-it-yourself to drop off tires at the processing plant.

As you visit with the possible used tire sources, form estimates about the potential volume of tires that each source might be able to supply.

Finding Customers for Used Tire Products:

The following is a sample of possible customers for tire-derived fuel products:

• Electric utilities
• Pulp and paper mills
• Cement plants
• Institutional and industrial boilers
• Dedicated tire-to-energy plants

Ground or crumb rubber is used in the manufacture of a variety of products. Look for manufacturers of the following items:

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• Automotive parts and tires
• Agrimats and equestrian footing
• Landscaping, walkways and trails
• Extruded and molded products
• Rubber modified asphalt
• Construction
• Athletic surface and fields
• Playground mats

Recycled tires have found applications in different types of civil engineering projects:

• Road construction
• Septic tanks
• Building foundations
• Landfill construction
• Light-rail base for commuter trains

Tyre recycling Business Requirements:

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1. Area Requirements 10000 sq. ft. to 50000 sq. ft.
2. Availability of procurement of raw material.
3. Electricity requirements 50KW to 80 KW
4. Tata Ultra (Truck)

Tyre recycling Business Raw material:

1. Used/waste tyre (Radial or Nylon)
2. Shoe sole
3. Waste Conveyor Belt
4. Coal for producing heat for Pyrolysis plant

License Requirements:

1. Business Registration (Proprietorship /LLP / Private limited)
2. MSME Registration
3. Trade License
4. GST Number
5. Factory License & Registration
6. Electricity Permission
7. Pollution Board (Management & Handling of plastic Waste)
8. EPF & ESIC Registration (If required)

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What type of products obtains after tyre recycling:

Types of Tyre : Radial tyre & Nylon Tyre

Types of Tyre Recycling Business in India:

Tyre Recycling can be done by two ways – It’s totally depending on end products obtained.

1. Tyre Recycling can be done by setup one Pyrolysis Plant
2. Pyrolysis Plant (Price start from 25 lakh onwards)

Output Products (Pyrolysis Plant):

1. Hydrocarbon gas
2. Pyrolysis fuel oil
3. Black Carbon Powder
4. Steel wire

Tyre Recycling can be done by individually machine.

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1. Ring cutter machine
2. Strip Cutter Machine, Rim Cutter m/c
3. Steel separator
4. Nylon Separator (fiber separator)
5. Magnetic screening
6. Rubber (crusher)Powder m/c

Total Machine cost: 15 lakh – 17 lakh (including GST)

Tyre recycling Business Output Product:

1. Black carbon Powder
2. Nylon fiber
3. Scrap Steel Wire

Tyre recycling Business Cost of Raw Material:

Waste tyre = Rs 12 per kg

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1000kg (1 Ton) waste tyre= 12x 1000= Rs 12000/ton

Daily requirements= 9 Ton

Monthly Requirements (26 working days consider) = 234 Ton

Monthly Investment against Raw material= 234 x 12000 = Rs 28, 08,000 /- 

Tyre recycling Business Investment

SrNo.	Name of Particulars	Investment
1.	Area (15000 sq. ft. ) (If Lease Or Rented )	10 lakh
2.	Infrastructure (like boundary construction, Admin office, Shed for Plant area, Water Facility, Premises Main Gate)	15 lakh – 20 Lakh
3.	Tata Ultra Truck for Raw material transport	15 Lakh
4.	Mechanically loader(for pyrolysis plant) (It may be on rented)	15 lakh
5.	Machinery Cost (Individually)	20 Lakh
6.	Pyrolysis Plant (10TPD)	45 Lakh
7.	License obtained	2.5 lakh
8.	Working Capital	30 Lakh
Total Investment	80 Lakh – 1 Crore

Tyre recycling Business Process by Pyrolysis Plant:

1. Shredding of tyres into small pieces
2. Put small 2 inches shredded piece of tyre into the reactor.
3. Burn the fuel material (coal, wood, oil or natural gas) in the combustion system.
4. Heat the reactor slowly, when the temperature reach around 130℃, it will produce oil gas.
5. Pass the oil gas through cooling system, cold liquid oil is produced.
6. After the production of oil, lower down the temperature of reactor to collect carbon black and steel wire.

Tyre Recycling Business Output Products:

1. Hydrocarbon gas (Generally used as fuel in same plant for heating purpose)
2. Pyrolysis fuel oil
3. Black carbon Powder
4. Steel Wire

If Pyrolysis Plant capacity is 10 TPD- Hydrocarbon Gas (5%)

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Generally used as fuel in same plant for heating purpose.

Pyrolysis fuel Oil (40 %- 52%).

Per day Pyrolysis fuel oil production= 4000 liter.

Per month (26 working days consider) Pyrolysis fuel oil production = 1,04,000 liter

Black Carbon Powder (30%)

Per day production of black Carbon Powder= 3 Ton

Per Month (26 working days consider) production of Black Carbon Powder= 78 Ton

Steel Wire (15%)

Per day steel scrap production= 1.5 Ton

Per Month (26 working days) production of steel scrap= 39 Ton

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Selling price of above output products in the market:

Sr. No.	Output Product of Pyrolysis Plant	Rate (Rs)
1.	Pyrolysis fuel oil (LDO), flash point= 60 C – 93 C	Rs 40 per liter
2.	Black Carbon Powder (Purity 99%, Superior grade)	Rs 8 – Rs 10 per kg
3.	Steel Scrap	Rs 18 per Kg

Now total sales revenue generates from output products:

Pyrolysis Fuel Oil:

Revenue from Pyrolysis fuel Oil per month = per month production X Rate per Liter = 1,04,000 X Rs 40

Revenue from Pyrolysis fuel Oil per month=  Rs 41,60,000/-

Black Carbon Powder:

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Revenue from Black carbon Powder per month= per month production X Rate /kg  = 78 Ton (78000Kg) x Rs 8/kg

Revenue from Black carbon Powder per month= Rs 6,24,000/-

Scrap Steel Wire:

Revenue from scrap steel wire per month= per month production X Rate /kg = 39 Ton (39000 Kg) X Rs 18 /kg

Revenue from scrap steel wire per month= Rs 7,02,000/-

Total Sales revenue from total output products = Pyrolysis fuel oil + Carbon powder + Scrap steel wire = 41,60,000 + 6,24,000+ 7,02,000

Total Sales revenue from total output products = Rs 54,86,000/-

Tyre recycling Business Monthly Expenditure

Sr. no.	Expenditure Particulars	Amount (Rs)
1.	Manpower SalaryManpower DeployedSalaryProduction Manager25000Maintenance Engineer18000Purchase Manager25000Semi-skilled workers (6 nos.)72000Watchman8000Total Salary1,48,000	Rs 1,48,000/-
2.	Raw material (waste tyre etc)	28,000,00
3.	Electricity Bill per month	3,00,000
4.	Maintenance expenditure	1,00,000
5.	Miscellaneous Expenditure	3,00,000
Total Expenditure	36,48,000

Total monthly expenditure of Pyrolysis Plant : 36,48,000/-

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• Net profit= Total sales Revenue – Monthly Expenditure
• Net Profit= 54, 86,000 –   36, 48,000
• Net Profit per month from Pyrolysis Plant= Rs 18, 38,000
• Net Profit per year from Tyre Recycling business= Net profit Per month  X  12
• Net Profit per Year from Tyre Recycling Business = Rs 2,20,56000

Where you can sell the output products of Pyrolysis Plant:

1. Pyrolysis fuel oil consumption industries

• Glass factory
• Steel factory
• Furnace Industry
• Rolling Industry
• Casting Industry
• Crude oil distillation plant
• Cement factory
• Boiler factory

2. Black Carbon Powder

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• Rubber Industries
• Ink Industries
• New tyre mfg. company
• Rubber runway
• Highways
• Shoel Sole mfg. industries.
• Conveyor belt manufacturing
• Electric wire mfg.
• Dry battery mfg.

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3. Scrap Steel Wire

• Supply to steel scrap dealer
• Supply to directly steel plant

F.A.Q(Frequently asked question):

Q. What is Tyre Recycling Business ?

Ans:Tyre or tire recycling is one of the good business opportunity which has a huge demand, but very less supply. Indian Government is also supporting this type of business a lot and is coming up with many schemes. This business is in accordance with resource management too.

Q. Why should any start this tyre recycling business?

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Ans: As we know that nearly 250,000,000 tyres are being disposed every year.  It is clear that they are a booming threat to the environment in existing as one of the hazardous solid waste. Instead of letting it to stay as a waste material. This is quite a large amount and this figure also gives confidence for entrepreneurs like you all to make use of it. You can wisely put it into business. Also, the raw material is easily available which makes your costs a measure lesser. And Indian Government is also supporting this type of business a lot and is coming up with many schemes.

Q. What are the requirements and raw material for tyre recycling business?

Ans: Tyre recycling business requirements and raw materials are given below:

Tyre recycling Business Requirements:

1. Area Requirements 10000 sq. ft. to 50000 sq. ft.
2. Availability of procurement of raw material.
3. Electricity requirements 50KW to 80 KW
4. Tata Ultra (Truck)

Tyre recycling Business Raw material:

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1. Used/waste tyre (Radial or Nylon)
2. Shoe sole
3. Waste Conveyor Belt
4. Coal for producing heat for Pyrolysis plant

Q. What is the total cost to open Tyre Recycling Business in India ?

Ans: If you want to start Tyre Recycling Business in India then you should have an ability to invest INR 80 lakh – 1 Crore all investment details are given below in the table.

SrNo.	Name of Particulars	Investment
1.	Area (15000 sq. ft. ) (If Lease Or Rented )	10 lakh
2.	Infrastructure (like boundary construction, Admin office, Shed for Plant area, Water Facility, Premises Main Gate)	15 lakh – 20 Lakh
3.	Tata Ultra Truck for Raw material transport	15 Lakh
4.	Mechanically loader(for pyrolysis plant) (It may be on rented)	15 lakh
5.	Machinery Cost (Individually)	20 Lakh
6.	Pyrolysis Plant (10TPD)	45 Lakh
7.	License obtained	2.5 lakh
8.	Working Capital	30 Lakh
Total Investment	80 Lakh – 1 Crore

Q. What type of products obtains after tyre recycling ?

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Ans: Tyre Recycling Business Output Products:

1. Hydrocarbon gas (Generally used as fuel in same plant for heating purpose)
2. Pyrolysis fuel oil
3. Black carbon Powder
4. Steel Wire

Q: What is the total monthly earnings and expenditure of Tyre Recycling Business?

Ans: The monthly earning and expenditure  is based on the store’s location and adherence to quality standards, the profit margin and the revenue varies from store to store. An average income of a franchise partner ranges from INR 2 to 3 lacs a month.

Sr. no.	Expenditure Particulars	Amount (Rs)
1.	Manpower SalaryManpower DeployedSalaryProduction Manager25000Maintenance Engineer18000Purchase Manager25000Semi-skilled workers (6 nos.)72000Watchman8000Total Salary1,48,000	1,48,000
2.	Raw material (waste tyre etc)	28,000,00
3.	Electricity Bill per month	3,00,000
4.	Maintenance expenditure	1,00,000
5.	Miscellaneous Expenditure	3,00,000
Total Expenditure	36,48,000

Total monthly expenditure of Pyrolysis Plant : 36,48,000/-

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• Net profit= Total sales Revenue – Monthly Expenditure
• Net Profit= 54, 86,000 –   36, 48,000
• Net Profit per month from Pyrolysis Plant= Rs 18, 38,000
• Net Profit per year from Tyre Recycling business= Net profit Per month  X  12
• Net Profit per Year from Tyre Recycling Business = Rs 2,20,56000

Q. Selling price of above output products in the market ?

Ans: Given below:

Sr. No.	Output Product of Pyrolysis Plant	Rate (Rs)
1.	Pyrolysis fuel oil (LDO), flash point= 60 C – 93 C	Rs 40 per liter
2.	Black Carbon Powder (Purity 99%, Superior grade)	Rs 8 – Rs 10 per kg
3.	Steel Scrap	Rs 18 per Kg