How Do I Start An E-Waste Recycling Company?

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
Motherboards
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.

Market Size

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:

E-Waste Collection

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.

Disassembly

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.

Manual Segregation

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.

Crushing

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.

Specific Recyclers

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

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.

Franchisee Model

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)

Self-Owned Model

For a self-owned business, the estimates are as follows:

Revenue Capability: ₹6000000 - ₹700000 per month

Capital Expenses

Land: 1858 sq. m

Plant and Machinery: ₹3500000

Operational Expenses

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.

FAQs

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.