Is E-Waste Recycling A Profitable Business?
- As the world is getting environmentally conscious, people are now gaining awareness about the importance of adopting environmentally friendly practices.
- Recycling is one of them.
- A lot of waste is generated by consumers, industries, and commercial enterprises.
- Waste generation is inevitable, as you need to get production and work going on.
- However, we do need to manage it effectively to preserve our environment.
- Another type of waste that is generated is E-Waste.
- There are several types of electronic wastes. Some of them can be categorized as follows:
- Discarded Computer Components
- Cathode Ray Tubes (CRTs)
- Printed Circuit Boards (PCBs)
- Headphones and Earphones
- Mobile phones and their components
- LCD/LED Television and their components
- Discarded Air Conditioners
- Discarded refrigerators
- Medical Equipment
- Other Electrical Components
- E-Waste is discarded or disposed of electronic products such as laptops, mobile phones, desktop computers, tablets, etc.
- The increase in the penetration and usage of smartphones and other related gadgets has led to the increased growth of E-Waste.
- The drive for constant upgrades and innovation has decreased the life cycle of electronics, leading to more E-waste as people change and discard gadgets more frequently.
- It is now one of the fastest-growing types of waste generated.
- It won't be a stretch to say that it will be the single largest type of waste very soon.
- However, if managed well, it can be a great business opportunity.
Recycling E-Waste has many advantages, such as:
- E-waste has increased since the growing popularity and usage of electronics.
- Recycling them will conserve the environment.
- They can be used for making electronics, which can save money spent on procuring new components.
- The E-Waste recycling business is a great opportunity.
- Yes, you heard that right, E-Waste recycling is now a great business opportunity.
- This business will only expand as more and more people will use electronics.
- As people use them more, more waste will be generated.
- This will, in turn, increase the scope for the growth of the E-Waste Recycling Business.
- The market is accepting and demanding new business trends as more and more technological innovation occurs.
- E-Waste management has the potential to be a major industry in itself if it is capitalised on.
- India is one of the emerging markets as far as electronic devices are concerned.
- People are now using smartphones, Smart TVs, Tablets, and Laptops like never before.
- With this, you can tap into the emerging market and establish an E-waste recycling business in India.
- If you are looking for new low-cost business opportunities, this is a great one for you!
- However, you need to know certain facts before you can dive into this business opportunity in India.
- The E-waste market size generated in India was estimated to be 3.2 Metric Tons (MT) in 2015.
- It is expected to reach 20 MT by 2020.
- As far as value is concerned, it was valued at ₹ 25000 crores.
- It is estimated that it will touch Rs ₹ 12500 crores in 2020.
- This sector, however, has not been tapped to its full potential.
- However, with the enactment of the E-Waste (Management) Rules 2016, Steps are being taken to formalise the E-Waste Management Sector.
- Different methods are used for recycling other products.
- They are:
- Cathode Ray Tubes (used in Televisions, Computer Monitor, Video Cameras, ATM, etc.) - Breaking and Removing the yoke and then dumping it.
- Printed Circuit Board ( a thin chip on which chips and other components are placed) - First, the chips are desoldered and removed. Then the metals are removed by acid bath and open burning.
- Chips and other gold plate components - Chemical stripping using hydrochloric and nitric acid.
- Plastics - Shredding and low-temperature heating.
- Computer Wires - Open burning and stripping to remove metals.
E-Waste Recycling Process
- The entire process of E-Waste Recycling is labor-intensive.
- It involves several steps, from collecting the waste to producing the final recycling product.
- The steps followed through the entire process are:
- The first stage is the e-waste collection stage.
- It is at this stage where the raw materials are sourced.
- Popular types of E-Waste are TVs, desktops, laptops, mobile phones, ACs, Refrigerators, and many more.
Testing and Segregation
- The waste collected is then segregated according to its nature and components.
- It is then tested for quality.
- Some of them are re-marketed for reuse.
- Some of them proceed to the next stage of the e-waste recycling process.
- The metals and other components are then disassembled from the discarded product.
- This stage is where you get the raw materials for making the new product through recycling.
- These metals and materials are then manually segregated based on their type.
- Different materials have different uses.
- Hence they will be segregated to facilitate their various benefits.
- Through this, the materials are crushed to convert them into a recyclable form.
- Many small debris and impurities remaining are also manually segregated at this stage.
- Then, materials that are separated are then sent to particular Recyclers for further processing.
- The materials include plastic, ferrous metal, precious metals, PCBs, CRT, etc.
Follow this model only if you have high investment capacity and know its ins and outs.
- Investment required for setting up an E-Waste Recycling business will be different from scale to scale and model to model.
- The investment required to set up the franchise model's business model and self-owned business model is given below.
- As the investment required for a franchisee unit depends on the agreement, it is impossible to provide a complete economic analysis.
- However, it can be estimated.
- For the capacity of 60 MT per annum, the following investment will be required:
Investment: ₹700000 - ₹800000
Area: 93 - 139 sq.m (1000 - 1500 sq. ft)
- For a self-owned business, the estimates are as follows:
Revenue Capability: ₹6000000 - ₹700000 per month
Land: 1858 sq. m
Plant and Machinery: ₹3500000
- Operational expenses come to around 40 lakh rupees per month.
- It includes-
- Human Resource Cost
- Cost of Scrap
- Expenses on utilities such as electricity and water
- Marketing Expenses
- Logistics Expenses
- Spare and Consumables
- Contingency Funds
- E-Waste Management is a complex business, but it is a lucrative business opportunity as E-Waste will only increase, and it's a new sector.
- It would help if you had a good amount of investment and properly choose a business model according to your needs and capacity.
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Q- Is E-Waste Recycling a great business opportunity?
- It is indeed a great business opportunity.
- It is a new concept that is gaining ground.
- More and more people are looking towards it as a lucrative business opportunity.
Q- Which business model is best for me?
- It depends on your investment capacity.
- If you are new to the business and have little knowledge about the industry, then the franchisee model is the best for you.
- You get the help and infrastructure of an established company.
- You also have to invest comparatively less.
- If you have high investment capacity and are experienced in the business, then the Self-Owned Business Model is the best one.
Q- Is the process for E-Waste Management complex?
- Yes, it is a complex process that encompasses different stages and processes.
- It would be best if you had good capital investment and complex Machinery to get the business running.
- You will also need a lot of expertise in handling these businesses as E-Waste recycling is complex.
Q- Which materials are extracted from E-Waste Recycling?
- Materials extracted from E-Waste recycling are ferrous metals, precious metals, plastics, and glass.
- These materials have a wide range of usage in different industries.