Products that were made from recycled paper have a huge demand in the global market. Today paper recycling business is one of the potential business ideas that has extensive opportunities in the FMCG and Packing industry and the demand for recycled products is going to skyrocket in the future This article will help you better understand the various steps involved in setting up a Paper recycling company such as business plan, opportunities, investment, market scenario, manufacturing process, and profitable aspects.
A paper recycling center collects enormous amounts of scrap paper which is usually obtained from various sources such as newspapers, books, brochures, and shredded paper waste from commercial units. This scrap paper is bought to the recycling plant where they undergo multiple steps of treatment that finally turn into a semi-liquid substance called pulp. This pulp is finally used to make various products such as recycled papers, paper bags, paper plates cartons, cardboard boxes, and envelopes. These products are in turn sold to various sectors for a good profit margin.
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Scrap paper which is the key raw material required for paper recycling is the cheapest source. It is also available abundantly throughout the world. The machinery used for paper recycling comes with a wide variety of specifications and sizes
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One can make a wide variety of recycled materials from recycled paper such as cardboard boxes, corrugated boxes, paper plates, napkins, paper towels, egg cartons, newspaper, and magzines, etc., considering the diverse products one can make from recycled paper as well as the ease of manufacturing process; paper recycling is considered a profitable business.
To put it in a simpler way, 1 Kg of waste paper price ranges anywhere between 5 to 15 rupees, this waste paper once recycled can make products such as paper bags or envelopes that can be sold at a higher price.
The main profitable aspect of paper recycling is, the main raw material (Scrap paper) is available at a very cheap price, and the end products made from this source are usually sold at a high price leaving a good profit margin for the manufacturer.
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A small to medium-scale paper recycling business requires around 15-30 Lakhs of investment. The major portion of the investment goes to the paper recycling machines which would cost about 50% of the investment and the remaining investment goes for daily business operations, raw materials, wages to workers, water supply, and marketing
Once the unit is up and running you would need to spend around 1 Lakh every month to run the recycling center which includes buying scrap paper, salary to workers, water and electricity bill, s and maintenance charges
Let us now find out the major steps that were involved in starting a paper recycling business. These steps are usually mentioned when creating a business plan or preparing a feasibility report for funding purposes.
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The first and foremost step in setting up a paper recycling Unit is to decide on a business plan on how you want to operate the business.
This mainly focuses on your budget capability; which means, how much capital you can invest or how much loan you might need to borrow to set up the business etc.,
Based on your investment various things get influenced such as the manufacturing process, machinery, raw material, workers, location, Products, and marketing. Those who were new to the business might find it hard to analyze all such requirements; Hence we have tried our best to help you walk through the process of setting up a small-scale paper recycling unit in the below steps.
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A small-scale paper recycling unit requires around 1200 sq. ft – 1500 sq. ft of space. This can easily accommodate space for a small-scale paper recycling unit with a 25 to 75 kg output capacity and also ample space for drying and storing the materials.
This is the most important requirement for a Paper recycling unit. A small-scale paper recycling center with around 25 to 75kg production capacity would consume around 1000 to 2500 liters of water every day. So, you need to ensure there is a good amount of water supply to your unit. At the same time, it would be a great idea if you can also set-up a small-scale ETP(Effluent Treatment Plant) that can help to treat the wastewater and reuse it for processing the waste paper.
Paper recycling is done with multiple types of machinery and each machine runs on specific power consumption. Depending upon your production capacity and machinery type one must choose how much power supply is required for their unit. A small-scale paper recycling company with 50 kg output requires at least a 3-Phase power connection
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There are 7 different types of machines used in the process of paper recycling and below is the list of each item and their use
Again, these totally depend upon your production capacity. Usually, paper recycling machinery can be seen in three different categories a small-scale unit with 25kg/per day; Medium scale unit with 75 Kg/per day, and Large scale paper recycling centers which are usually called paper mills as their production capacity can be as high as 10 – 100 ton/day.
It requires around 5 workers to run a paper recycling center with 50 kg to 75kg production capacity. In most of the scenarios, manual work is highly required during the initial stages of the process which involves sorting the scrap paper and mixing them with water and chemicals and then feeding it to the pulper and then, during the calendaring phase. Where the worker needs to precisely cut the paper into the correct size.
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There is also no special requirement to have a technician for the unit. Even if there is a technical problem, you will be trained by the company service team on some minor fixes that you can do by yourself. However, if there is an issue that leads to the breakdown of machinery, most companies would send out their technician within no time.
This is the first step of the paper recycling process. Usually, scrap paper is purchased in large quantities from various sources such as scrap yards, scrap paper sellers, commercial areas like offices, malls, and markets, etc.,
In the collection process, one must first decide what type of scrap paper one would like to recycle. This is a very important step because not all type of scrap is suitable for paper recycling.
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Especially, if you are running a small scale paper recycling plant you must focus on obtaining scrap paper that is easy to process such as newspaper, notebook paper, and kraft paper, or corrugated paper. These types of paper are not only easy to recycle but also comes at cheap price. For example, 1kg of scrap paper price ranges from 5 – 10 and 20-25 if it is a newspaper.
Although they can be recycled it takes consumes a lot of energy and requires large-scale machinery which is very expensive and not recommended for small paper recycling plants.
Once the recycled paper is procured from waste recyclers; it further undergoes segregation to make sure there is no debris or plastic waste or metal items like pins, nails, or staples that come during the processing of paper pulp.
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This process is mostly done in manually way and requires at least two workers. After segregation of the paper is done, it will be further cut into small pieces either by manual cutting process or fed into paper shredder that finally turns the paper materials into small pieces which makes it easy for pulping process.
The scrap papers are then fed into a machine called “Hydrapulper” or “Hydropulper” it is a high powerful agitating machine that breaks down the fibers under hot temperatures. Usually, in this step, the scrap papers are fed into a Hydropulper machine and then chemicals such as Rosin and Alum are added to improve the bonding capacity of paper
Bleaching of Pulp – is used to improve the color of the pulp; basically, it improves the brightness of the paper pulp. Chemicals like Hydrogen peroxide and Sodium dithionite are commonly used, bleaching agents.
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Although, Bleaching agents were used in the paper recycling process for several years. Recent studies show that they pose environmental concerns. Hence you can see several notebook manufacturers were adapting for bleach free processing
Sizing Agents – Rosin and Alum are commonly used sizing agents; the sizing agents help water absorbency of the paper and also reduce ink bleed. They are also used to improve the writing performance and printability of the paper
Once the pulp is extracted it is then transferred to “Uni-Vat” it is a manually operated equipment that helps to turn the pulp into sheets. Uni-vat has a tank-like structure where it is filled with water and has a metal mesh connected to lifting rods. Once the pulp is equally spread across the metal mesh it is lifted slowly to a certain height where the water is filtered, and the pulp extract is equally spread across the sheet.
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Later, the pulp is transferred to a Screw Press which applies high amount of pressure on the pulp and removes excess water content and finally giving it a sheet like
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