How to Start an Aluminium Recycling Plant

The aluminium recycling industry has some excellent potential. During the writing of this article, the NPCS team prepared a business setup sample that you can use to prepare your plant. The recycling method for metallic elements, value estimation in plant fixing, and gross margin in this industry are some of the main topics in a business layout, and NPCS has tried to arrange all information.

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Indian Market Potential

The largest producer and consumer of aluminium metal worldwide is China. China has reduced its capacity to produce more than 2 million tonnes of aluminium so far this year as a result of regulatory restrictions on restricted power supplies and efforts to reduce emissions. On the other side, the output reductions in China also resulted in a decrease in the global supply of aluminium, which increased aluminium prices.

Related Business Plan: Aluminium Cans for Brewery Industry

Cans, foil, kitchen utensils, construction materials, window frames, durable items, electrical conductors, and parts for airplanes are just a few of the many products that use aluminium. According to the International Aluminium Institute (IAI), 75% of the estimated 900 million tonnes of aluminium produced worldwide since 1880 are still being used for productive purposes. 75% of all Aluminium produced in history is still in use because of its durability and workout qualities.

Aluminium recycling is a technique for reusing scrap metal in products during initial production. The process just entails re-melting the metal, which is less expensive and energy-intensive than creating new aluminium via the electrolysis of aluminium oxide. The process first requires the stripping of aluminium from mineral ore and purification using the anodyne method.

Recycling scrap aluminium only requires 5% of the energy used to produce new metal. Because of this, approximately all aluminium produced in India is made from recycled waste. The most significant component of processed aluminium scrap is used food containers, with the majority of used beverage container scrap being converted to aluminium cans in factories.

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Space Required for Recycling Plant

A size of between 3000 and 3400 square feet is sufficient to launch an aluminium scrap recycling business. The preferable choice would be to either use your land or rent the land. The land must be 1 km away from sensitive regions including residential, agricultural, water bodies, and other sensitive areas.

Watch Video: Aluminium Recycling Plant | Production of Aluminium Ingots from Aluminium Scrap.

Basic Infrastructure

Setting up the recycling machine for aluminium scrap requires a space with ventilation. It must have the necessary ventilation apertures, power connections, safety standards, and other tools. In addition, we require some additional room to store the recycled goods as well as the aluminium scrap required for recycling. This can all fit in a 3400 square foot space. Make sure there is enough room so that no fire hazard situations arise.

Related Feasibility Study Reports: Aluminium Recycling Plant

Registration and Licence Required

· GST Registration

· Factory License

· NOC by the State Pollution Control Board

· MSME Registration

Resources – Power and Water Supply

It is crucial to have a proper power connection and water supply. Make sure there is a reliable power supply in the location you have chosen to build an aluminium recycling facility because a lack of it could hinder business operations.

Additionally, make sure there is a sufficient supply of clean water for recycling. Water may be necessary for cleaning recycled aluminium and aluminium scrap.

Read our Book Here: The Complete Technology Book on Aluminium and Aluminium Products

Major Equipment Required

· Heater to melt aluminium

· Generator during a power outage

· A container

· Fork lifer

· Coolant

· Broiler

· And all other machinery necessary for scrapping, melting, mixing, and moulding.

Raw Material

The raw material is required in any manufacturing business. But today our post is about the waste aluminium recycling which will be fully recycled as a product to sell further. You will have to work closely with local scrap dealers to supply raw materials to your business, who also pick up aluminium other than waste such as paper or plastic. For this, you can contact the scrap officials near the dumping ground, who can provide you aluminium based on your requirement, for this you need a good amount of investment.

Conclusion

Aluminium recycling business is always in demand in the market. This means its profit margin is also very high. As we all know that in today's time there is no such home that does not use any product or box made of or related to aluminium. Whether it is any food or drinking can or electrical item used in the house, today aluminium has taken hold in every product.

If you need information about Business of Aluminium Recycling Plant, then contact NPCS. The project report from Entrepreneur India enables you to choose a profitable project for investing in or diversifying into by shedding light on crucial areas including business size, the product's market potential, and the motivations behind investing in the product. By defining the target client organisation for the product, the study helps you promote and position it effectively.

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Assumptions for Profitability workings	Plant Economics
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Other Fixed Assets Furniture & Fixtures Pre-operative and Preliminary Expenses Technical Knowhow Provision of Contingencies
Working Capital Requirement Per Month Raw Material Packing Material Lab & ETP Chemical Cost Consumable Store
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Salary and Wages	Turnover Per Annum
Share Capital Equity Capital Preference Share Capital
Annexure 1:: Cost of Project and Means of Finance
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Annexure 3 :: Assessment of Working Capital requirements Current Assets Gross Working. Capital Current Liabilities Net Working Capital Working Note for Calculation of Work-in-process
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Annexure 6 :: Profitability ratios D.S.C.R Earnings Per Share (EPS) Debt Equity Ratio
Annexure 7 :: Break-Even Analysis Variable Cost & Expenses Semi-Var./Semi-Fixed Exp. Profit Volume Ratio (PVR) Fixed Expenses / Cost B.E.P
Annexure 8 to 11:: Sensitivity Analysis-Price/Volume Resultant N.P.B.T Resultant D.S.C.R Resultant PV Ratio Resultant DER Resultant ROI Resultant BEP
Annexure 12 :: Shareholding Pattern and Stake Status Equity Capital Preference Share Capital
Annexure 13 :: Quantitative Details-Output/Sales/Stocks Determined Capacity P.A of Products/Services Achievable Efficiency/Yield % of Products/Services/Items Net Usable Load/Capacity of Products/Services/Items Expected Sales/ Revenue/ Income of Products/ Services/ Items
Annexure 14 :: Product wise domestic Sales Realisation	Annexure 15 :: Total Raw Material Cost
Annexure 16 :: Raw Material Cost per unit	Annexure 17 :: Total Lab & ETP Chemical Cost
Annexure 18 :: Consumables, Store etc.,	Annexure 19 :: Packing Material Cost
Annexure 20 :: Packing Material Cost Per Unit	Annexure 21 :: Employees Expenses
Annexure 22 :: Fuel Expenses	Annexure 23 :: Power/Electricity Expenses
Annexure 24 :: Royalty & Other Charges	Annexure 25 :: Repairs & Maintenance Exp.
Annexure 26 :: Other Mfg. Expenses	Annexure 27 :: Administration Expenses
Annexure 28 :: Selling Expenses	Annexure 29 :: Depreciation Charges – as per Books (Total)
Annexure 30 :: Depreciation Charges – as per Books (P & M)	Annexure 31 :: Depreciation Charges - As per IT Act WDV (Total)
Annexure 32 :: Depreciation Charges - As per IT Act WDV (P & M)	Annexure 33 :: Interest and Repayment - Term Loans
Annexure 34 :: Tax on Profits	Annexure 35 ::Projected Pay-Back Period And IRR