Business opportunity: PET recycling

Ever thought about what happens to the cold drink/juice/mineral water bottle after we have discarded it. About 70 per cent of PET bottles are recycled and reused in textile and packaging industry.

India is one of the largest recyclers of PET in the world, next only to China. The industry is growing at a rate of more than 25 per cent per annum. India consumes around 800,000 tonnes of PET resins annually, around 70 per cent of which is collected and recycled. PET recycling business has a turnover of Rs 3,500 crore[1].

PET recycling business is concentrated in Maharashtra and Gujarat, textile and packaging hubs of the country. There are not many PET recycling units in Andhra Pradesh and Telangana. Given that both Telangana and Andhra Pradesh are bountiful in cotton and have identified textile as a focus sector, PET recycling can be an attractive opportunity.

PET Recycling Process

PET bottles are collected by rag pickers and eventually find their way in the recycling factories. Here the bottles are crushed to make PET flakes that are cleaned, cleared of other polymers, hot washed and dried. These flakes can be further processed into fibres (for textile) or injection moulded/ blow moulded for other applications.  The quality of PET is measured in terms of its purity (PPM, particle per million of impurities) and its hardness (Intrinsic viscosity, IV).  The quality of PET flakes is dependent on the input as well efficiency of the washing process.

Market

In India recycled PET (R PET) is not allowed for packaging of food items. The key end use applications of RPET include textiles, PET straps and home furnishing. Nearly 70-80 per cent of R pet is consumed in textile industry.

Products can be made from PET Flakes

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The industry players are of two types, PET flakes manufacturers and integrated players who process the flakes into fibre or other products. The table below describes some of the integrated players.

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Budget

A PET flakes manufacturing unit (comprising PET grinder and washing line) of a capacity of 300 kg per hour can be set up within a budget of Rs. 1 crore.  The land requirement would be around 1000 sft. One also needs to develop a strong network of/chain to collect PET waste.

How can we help?

We can help you set up PET recycling unit through a number of services including market viability assessment, technical consultation and project execution support.

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Write to us: bchhatre@finetrain.comadmin@finetrain.com

Call us: 800 888 4932 /9032398367

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[1] Source: http://www.petrecycling.in/ and Reliance industries presentation in

ASSOCHAM’s 4th National Conference on ‘Waste to Wealth

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Business Opportunity: Cold Storage

Cold storages are large refrigerated warehouses, commonly used for storing fruits, vegetables, processed meat, frozen foods and pharmaceuticals. Cold storages serve as an important link between farm produce and final consumer. The demand for cold storage services has been rising due to a growth in food and related industries.   There are over 7000 cold storages in India with a total capacity of 32 million metric tonnes, distributed across the country. A regional break up of cold storages across the country is given below.

Table 1: Cold storages in India

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 Source: National centre for cold chain development

Business models

Cold storages typically have two business models

  1. Food and Agri products storage: Cold storage stores items such as fruits, dairy, meat etc, which are required all through the year. The cold storage needs to be located close to the end customers and should preferably own some delivery infrastructure as well.
  2.  Off season products storage: Cold storage stores products such as chillies, potatoes, seeds for meeting the demand in off season. The cold storage needs to be located close to the source /originator of products. Majority of cold storages in India fall in this category.

A thorough analysis of market, key customers and business model is essential before starting a cold storage.

Machinery and profitability

The cold storage equipment has two important components: machinery and insulation panels. The machinery comprises compressors, evaporative condenser and motors. The walls of the cold storage chambers are fabricated with insulation panels, made of polyurethane.

Many of the cold storage machinery suppliers take up turnkey contracts and offer services to do civil work, install machinery and provide insulation. The cost of cold storage depends on a number of factors such as

  1. Capacity of the cold storage and the number of rooms/chambers in the cold storage
  2. Type of goods stored, typically divided into two categories: Plus temperature storage for vegetable/fruits/seeds and minus temperature for frozen products. The cold storages that offer facilities to keep frozen product would cost higher as compared to the plus temperature cold storage.

The key operational costs include electricity charges and manpower cost. And the capacity utilisation determines the profitability.

Budget

The cost of setting up a cold storage of around 3500 metric tonne would be close to Rs. 5 crores. The subsidy is available under the scheme from MIDH (Mission on Integrated Development of Horticulture (MIDH). The subsidy for a single temperature zone is Rs. 8000 per metric tonne for a capacity up to 5000 metric tonne. The subsidy is capped at 35% of project cost (excluding land)

How can we help you

We can help you start a cold storage unit through a number of services including business viability assessment, technical consultation and support in project execution.

 Reach us

Write to us: bchhatre@finetrain.comadmin@finetrain.com

Call us: 800 888 4932 /9032398367

Visit us: www.finetrain.com

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Manufacturing Fruit Bars: Solar Dehydration Technology

Fruit bars are healthy, nutritious and minimally processed,  thus make a great snack. Fruits such as Mangoes and Guavas are very widely cultivated in India. Given their pulpy constitution, these fruits are well suited to be processed into a bar.

Rising demand for healthy snacks, ample availability of fruits and relatively modest capital requirements make fruit bar manufacturing an attractive opportunity for small businesses.

Solar Dehydration Technology

Traditionally fruit bars were made by sun drying the fruit, the process is prone to contamination, making the product unfit for consumption. The process of solar dehydration refers to dehydrating the pulp in solar dryer, which dries the fruit evenly and keeps it safe from contamination. This technology is provided by SEED (Society for Energy and Environment Development), an NGO based in Hyderabad.

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Fruit Bar Manufacturing Process

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Budget

The minimum viable size of the project is 1 tonne per annum  and the cost of machinery (fruit pulper, boiler solar dryer and quality testing equipment) is around Rs. 10 lakhs. The total project including working capital and marketing budget can be set up within Rs. 15 lakhs. The land requirement would be around 800 sft, of which atleast 300 sft should be open space that gets direct sunlight.

How can we help you?

We can help you start a Fruit bar manufacturing unit through a number of services including business viability assessment, technical consultation and support in project execution.

 Reach us

Write to us: bchhatre@finetrain.com, admin@finetrain.com

Call us: 800 888 4932 /9032398367

Visit us: www.finetrain.com

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