Plastics 2

Plastic Recycling in
Bangalore - India
Case-Study Report
Plastic Recycling
Esha Shah
Rajaram
December 1997
Nieuwehaven 201 fax: +31 182 550313

2801 CW Gouda e-mail: office@waste.nl
The Netherlands
of exposure to this pigment can??cause
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The research for this publication received financing from the Netherlands Development
Assistance (NEDA), Ministry of Foreign Affairs. Citation is encouraged. Short excerpts may be
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Responsibility for the contents and for the opinions expressed rests solely with the authors;
publication does not constitute an endorsement by WASTE or the financier.
Code: CS-pla ind

PREFACE
This study has been done in the framework of UWEP, the Urban Waste Expertise Programme, a
six-year programme - 1995-2001 - of research and project execution in the field of urban waste
management in the south. UWEP aims at:
- generating knowledge on community and small and micro enterprise involvement in waste
management
- developing and mobilizing south expertise on urban waste issues
-
The Urban Waste Expertise Programme covers a range of topics related to waste management in
the context of the urban environment in the south - solid waste collection and transfer, waste
minimization, recycling of various waste fractions, resource recovery and liquid waste treatment.
Waste management and its various stakeholders now form a rapidly growing area of interest.
The role played by small and microenterprises and communities, however, is still much
neglected. UWEP aims to generate, analyse, document and customize the information that is
gathered during research and pilot projects, in order to enhance the expertise of the UWEP target
groups, ultimately aiming at an improved integrated sustainable waste management system. This
will in the long run lead to an improved environment, create more employment and offer
improved urban services for everyone.
One of the UWEP research topics was plastic recycling and the possibilities of responsible re-
use by involving small enterprises. This report, "Plastic Recycling in Bangalore - India ",
reflects the results of a case-study research done by Esha Shah and Rajaram, commissioned by
WASTE, the executing agency of the UWEP programme. Similar researches on the topic of
plastic recycling were undertaken in Chile, Colombia and Peru. By publishing these casestudy
reports, we explicitly aim at divulging the data gathered during the researches. UWEP sees this
report as one of the ways of focusing attention on small and microenterprises, community
involvement and their invaluable role in urban waste management.
Hopefully this publication helps you to form a picture of the role the various stakeholders play
in urban waste management. More information and an overview of the other UWEP reports and
books can be obtained from WASTE.
The UWEP Case-study Report series are published informally by WASTE. In order that the
information contained in them can be presented with the least possible delay, the typescript has
not been prepared in accordance with the procedures normally adhered to. WASTE accepts no
responsibility for errors.
Inge Lardinois, UWEP research coordinator

Arnold van de Klundert, UWEP director
WASTE advisers on urban environment and development
Gouda, September 1998
1
CONTENTS
PREFACE ...................................................................................................................................1
CONTENTS ...................................................................................................................................2
CHAPTER 1 INTRODUCTION...................................................................................................5
1.1 Research Methodology .........................................................................................................5
1.1.1 Plastic Recycling Units .............................................................................................5
1.1.2 Middle Dealers and Wholesalers...............................................................................6
CHAPTER 2 PLASTIC INDUSTRY IN INDIA .........................................................................8

2.1 Plastic Recycling Industry in India .....................................................................................8
2.1.1 History.......................................................................................................................8
2.1.2 The Spread ................................................................................................................9
2.2 Recycling Industry in Bangalore.......................................................................................12
2.2.1 Overview.................................................................................................................12
2.2.2 Amount of Plastic Waste Recycled.........................................................................12
2.2.3 Nature of Plastic Recycling Units ...........................................................................12
2.2.4 Types of Plastic Waste ............................................................................................13
2.2.5 Types of Reprocessing Units ..................................................................................14
2.3 Associations/Organisations Dealing with Plastics............................................................15
2.4 Recycling Technologies ......................................................................................................15
2.5 Policy Issues.........................................................................................................................16
2.5.1 Regulation ...............................................................................................................16
CHAPTER 3 PLASTIC RECOVERY : PROCESS, PRACTICES AND FINANCIAL

ANALYSIS ............................................................................................................17
3.1 Recovery of Plastic Waste ..................................................................................................17
3.1.1 Waste Picker ...........................................................................................................17
3.2 Kabadiwala .........................................................................................................................18
3.3 Middle Dealer......................................................................................................................18
3.3.1 Sorting.....................................................................................................................19
3.4 Wholesalers .........................................................................................................................20
3.5 Waste Picker .......................................................................................................................20
3.6 Kabadiwala .........................................................................................................................21
3.7 Middle Dealer......................................................................................................................22
3.7.1 Sharvana Paper Mart J.P. Nagar II Phase..............................................................22
3.7.2 Vazeer Ahemad Bharatmata Slum Pillana Garden Bangalore - 560 045..........27
3.7.3 Gora Babu Vasanth Nagar Near Cantonment Station Bangalore......................30
3.7.4 Ibrahim Nagashettyhalli Main Road RMV Extension, Bangalore - 94 ..............34
3.8 Wholesaler...........................................................................................................................39
2
3.8.1 Razaque Bhaiya III rd Cross, S.G. Narayana Layout J.C. Road Bangalore.........39
3.8.2 Mahaboob Ali Khan Asian Plastic Traders 16/1 Jolly Masjid Road Bangalore. .44
CHAPTER 4 PLASTIC REPROCESSING: PROCESS, PRACTICES AND FINANCIAL

ANALYSIS CHAPTER I: PROCESS AND PRACTICES ...............................48
4.1 Definition .............................................................................................................................48
4.2 Reprocessing........................................................................................................................48
4.2.1 Types of Polymers Reprocessed .............................................................................48
4.2.2 The Process .............................................................................................................49
4.3 Environmental Impact of Recycling .................................................................................61
4.4 Case studies .........................................................................................................................65
4.4.1 Universal Industrial Engineers 527 A Thippasandra Bangalore 560 075 Phone No.
52 89 359 Email : balchand@giasbga.vsnl.net.in Contact Person : Mr. Kamal
Balchandani, Proprietor...........................................................................................65
4.4.2 Vinayraj Plastics 59, 5th Main, Sreerampura Bangalore 21 PH: 3350756 Contact
Person : Mr Shukla / Mr. Pandey ...........................................................................70
4.4.3 Munnot Plastics Industries Nayandahalli Mysore Road Bangalore - 560 039 Contact
person: Mr.Kewal Designation : Proprietor ........................................................75
4.4.4 Neha Pladtics 9, Naresha Block Venkateshpura PH: 5467019 Contact Person : Mr
Damodaran, Proprietor............................................................................................80
4.4.5 Contact Person: Mr. Ismail Mohamad Nayandahalli, Bangalore...........................85
4.4.6 Hindustan Plastics 285, 8th Cross, 2nd Main Prakashnagar Bangalore - 560 021
Contact Person : Mr Rajesh, Proprietor .................................................................89
4.4.7 Allied Containers 131, Lalbagh Road 4 th Cross Near Dilip Road Lines K.S.
Gardens Bangalore -560 027 Contact Person: Mr. Ramesh Bhatia, Proprietor ....93
4.4.8 Apex Polymer Extrusions 7 th Main, Mico Layout Bangalore: 560 076 Contact
Person: Kamal Thakkar Phone: 66 85 982, 6685983.............................................97
CHAPTER 5 OCCUPATIONAL HEALTH IMPACT OF PLASTIC RECYCLING.........102

5.1 Health Impact of Waste Recovery...................................................................................102
5.2 Health Impact of Plastic Reprocessing ...........................................................................104
5.3 Air Quality Monitoring ....................................................................................................109
5.4 Recommendation ..............................................................................................................110
CHAPTER 6 ISSUES.................................................................................................................111
6.1 Plastic Recycling Industries as Small Scale Industries..................................................111
6.1.1 Finance ..............................................................................................................112
6.1.2 Technology........................................................................................................112
6.1.3 Industrial Cluster...............................................................................................112
ANNEX 1 EXAMPLE OF CERTIFICATE........................................................................118
3
4
CHAPTER 1 INTRODUCTION
The objective of the current research is to analyse practices followed by small scale plastic
recovery and recycling units in Bangalore, India. It attempts to inquire into how plastic recycling
units functions with relation to technical, environmental/health and financial/economic aspects.
It also intends to identify possible sources of occupational health hazards due to recycling. It
finally discusses relevant national and global policy issues and suggests possible ways for
improvement.
Chapter two outlines plastic industry and plastic recycling industry in India with relevant facts
and figures. Processes, practices and financial analysis of plastic recovery and plastic recycling
units are described in chapter three and four respectively. Chapter four describes possible
sources of occupational health hazards and the final chapter discusses issues and suggestions.
1.1 Research Methodology
1.1.1 Plastic Recycling Units

Processes and practices followed and financial analysis of plastic recovery and recycling units
may be considered a relatively difficult exercise. We have adopted following methodology to
access and cross check the data.
In the first round, we contacted the president of Karnataka Small Scale Plastic
Manufacturers Association to get first hand idea of plastic recycling. Two volumes (A Guide
to Plastics) published by the association gave further information including a separate list of
reprocessing units in Bangalore. This provided the broad understanding of the nature of the
plastic recycling industry in Bangalore.
The selection of units for the financial analysis posed a serious problem. Although we
wanted a representative sample, the willingness of the entrepreneur to provide information
became major criteria. Besides, it was clear that without the introduction by the inside
person it will be difficult. The units were chosen with the help of a plastic recycling
industrialist.
The data of each unit were first collected with the help of the informer. Each unit was then
visited for few times. Cross checking was done at various levels
a) Prices of raw material and final products were checked in the market
b) The quotation received from a machine manufacturing unit gave idea about market prices
of the machinery. In addition, a local small machine manufacturing workshop located in
Nayandahalli was contacted, under the guise of establishing a recycling unit, to
understand what it would mean to have second hand machinery.
c) Rent and land value were checked for the area.
d) d) Pigment and additive suppliers were contacted not only to procure quotation but also
to understand the type, quantity and nature of the pigments and additives used for
recycling. After a proper scrutiny data of two units were discarded.
5
1.1.2 Middle Dealers and Wholesalers
Given the nature of this part of the recycling industry, a person with long working experience of
working with waste pickers and middle dealers was approached for research assistance. The
friendly relations made by the research assistant with Middle dealers during his previous job
with one of the NGOs made it possible to access the information. He not only obtained the data
but also cross checked with his own understanding of interviewees' dealings through years.
Along with him, place of the Middle dealer was visited a number of times. Besides, the data was
further cross checked by interviewing the waste pickers supplying at Middle dealers' places. Out
of a total 7 Middle dealers contacted, only 4 were found appropriate and hence presented here.
The Middle dealers contacted provided further linkages to the wholesalers. A Middle dealer
introduced us to a wholesaler who in turn introduced us to another wholesaler. All this cosseted
number of visits and lots of talking, often completely irrelevant matter. There was no way to
cross check the wholesalers data except by taking opinion of the Middle dealer supplying at his
place. Only two wholesalers agreed to provide financial data within the time limit of this
research.
Clarification
While trying to understand the logic of sorting, packing and selling the waste from Middle
dealer's point of view we came across a system, though has its own order, not very easy to grasp
by a researcher during the limited time of exposure. There were many practical problems (other
than the Middle dealers' apparent reluctance to talk about business) encountered when we tried
to fit their logic into the framework of this research. Following are some of the issues.
The practice of sorting vary widely from one person to another. Although apparently waste is
sorted according to type and quality, we felt that sorting is done ultimately, according to the
likely price a category of waste may fetch. For instance, a sorting category known as 'article'
comprises combs, toothpaste cover and acrylic sheet with various other components. Though
seemingly unrelated in terms of type and quality these various components are packed in to a
sack and sold at one price. Moreover, price is negotiated depending upon the number of
acrylic sheets in the sack and it varies any where between Rs. 11 /kg to Rs. 35 /kg. This is
also true for other categories of waste. The final price depends upon the negotiation capacity
of Middle dealer which in turn depends on his experience, knowledge and relation with other
actors in the business. Similarly, what a Middle dealer pays to a waste picker also varies
depending upon the period of association with a waste picker, regularity of waste supply and
quantity.
It is not very clear what exactly falls into a 'category' of waste. Pugga is one such category.
What we saw as Pugga at one Middle dealer's place differed drastically from what we saw at
another place. However, eventually we felt that the norms followed in waste collection,
sorting and packing are very informal and contextual. They depend on the tradition, the
demand from the Wholesaler, type of waste received and, most importantly, the capacity of
the middle dealer to negotiate the price.
6
A major problem was encountered when we tried to understand the quantities of waste
collected and sold. In the absence of any written records, a Middle dealer depends upon his
memory, which may not capture seasonal fluctuation.
Besides, the logic of quantity of waste purchased and sold also do not tally. The quantity of
waste purchased is expressed as kgs.. per day, whereas the quantity sold is expressed in kgs..
per week. The data was provided by the most experienced person in the shop ( in majority of
the cases the proprietor himself) even then the data on quantities in different contexts was
differently told. This may have to do with the highly uncertain field of waste collection and
trade. It varies widely from day to day, leave apart the seasonal variation. Given the
informality of the entire business, proper documentation is least expected. Besides,
quantities were expressed in a range of plus or minus 20 kgs.. per day. This can create a
discrepancy of half a tone when counted on monthly basis. Further, it does not match with
the same category of waste sold.
After juggling with seemingly incomprehensive data encountered in the first round we
decided to follow some other method. Hence, we combined three ways to make our own
judgment
we took the quantity told by the middle dealer as base figure and modified it depending
upon the number of waste pickers and Kabadiwalas selling at his place.
the quantities of waste sold was also modified after talking to a number of waste pickers.
The figures were cross checked with the help of other knowledgeable people in the
business.
Hence, we clarify that the idea here is to give broad understanding of a Dealer's practice. This
invariably imposes several limitations on the quality of financial analysis.
7
CHAPTER 2 PLASTIC INDUSTRY IN INDIA
The estimated per capita demand of plastics in India is 0.800 Kgs. which is one of the lowest in
Asia. The projected demand in 2000 A.D. is 2.16 Kgs. per capita (KSSPMA, 1992). A boom in
the consumption of plastic is experienced with the economic liberalisation since 1991. Plastic
consumption in India has more than doubled from 0.85 million tones during 1990-91 to 1.79
million tones during 1995-96. Demand for commodity plastics is growing at the rate of 15 % per
year. As per the survey conducted by the All India Plastic Manufacturers Association the total
capacity to produce PE, PVC, PP and PS was 1.39 million MT and demand was 1.55 million MT
in 1995 which has increased to 1.8-1.9 million MT for 1996-97 (KSSPMA,1992). This is
concentrated in three major sectors according to the Plast India figures: infrastructure (power,
telecommunications, roads, bridges and construction) which is 30 % of the total, packaging is 25
% of the total and 24 % for agriculture and water (Nanavaty, 1997). Based on the end use
consumption pattern the plastic waste generated has more than doubled to 0.8 million tones
during 1995-96. It is estimated that at a macro level 50 % of the quantity of virgin raw material
consumed reaches municipal waste stream annually. Although on weight basis the level of
plastics waste in municipal waste stream is only 3 % to 4 %, they occupy 25 to 30% of the
volume. It is projected that the plastic waste generation will reach the level of 1.6 million tones
annually by year 2001-02 (Sundaresan, 1996).
2.1 Plastic Recycling Industry in India
2.1.1 History
It is difficult to trace back when exactly the recycling would have started in India. In 1950s and
1960s, with the growth of large scale petrochemical industries, the small scale processing units
were established in Western Indian states of Gujarat and Rajasthan. On the basis of informal
interaction with various people in the field of recycling it may be suggested that recycling of the
waste generated from the manufacturing and processing units would have been the first step. The
machinery required for the reprocessing is technically similar to the processing machinery.
However, the widespread recycling of plastic waste, both from industrial and municipal origin
might have been started in late 1970s and early 1980s. This was the time when the liberalisation
attitude was set in with Janatha Government in power in 1977. The Government explicitly
recognised the small scale manufacturing sector through exemptions from excise duties and
other taxes, reduced paper work and adhoc licensing scheme started for tiny industries. And with
the New Economic policy started in 1984 by the Congress Government industrialisation was
promoted which gave enormous boost to consumer market. Simultaneously the upper limit for
small scale industries1 was increased calling for corresponding boost in the small scale
1
Currently Small Scale Industries in Indian context are characterised by having 5-25 employees and having less
than RS. 3,00.00.000 of investment.
8
industries. Plastic processing and reprocessing industries can be considered as one among many
such newly established small scale units at that time.
The wide spread recycling of the plastic waste is generally associated with the commencement of
milk packing in plastic sachets. It also corresponds with the time when plastic carry bags were
also started to be used. The substantial amount of plastic waste started reaching streets
approximately the same time. However, it is felt that the waste from the newly proliferated
processing units might have made recycling economically viable. Recycling of municipal/ post
consumer waste may be an offshoot of such industries mainly meant to recycle industrial waste.
It seems that recycling units were first established in Gujarat, Rajasthan and some parts of West
Bengal which were further spread to other parts of India.
2.1.2 The Spread
There is no accurate data available on nature and number of plastic recycling units in India
although various estimates are available. The current plastic recycling rate is estimated as 60%
by Plast India Foundation (KSSPMA, 1992). But the discussions with knowledgeable persons
reveal it to be anywhere between 80% to 93%. One estimate is that about 20,000 micro
enterprises are engaged in reprocessing and recovery of plastic waste in addition to 180,000 of
various sorting and washing units, 60% of which are unregistered (Harriman Chemsult, 1996).
Delhi alone has estimated 53,400 units and Delhi and Bombay together process over 50% of
India's waste plastics. There is heavy concentration of recycling units reported in Gujarat and
Goa, which, as a whole, account for 40%. As per other estimates there are about 18,000
recycling units spread all over the country, with about 2500 palletizing units with an average
output of 350 MT/ year and an over all output of over 875 kTA ( Nanavaty, 1997).
India nevertheless has some of the world's largest plastic waste markets. Notable among them
are: Jawalapuri in Delhi for PVC, Nand Nagari in New Delhi where trading level reaches 1000
MT/day, Dharavi in Bombay and Jolly Mohalla in Bangalore. Figure 1 shows the recycling
centers in India and Figure 2 schematically represents the region wise distribution of recycling
industry in India (Nanavaty, 1997).
9
Figure 1 Recycling Centres in India
Figure 2. Recycling Industry: Regionwise
10
Table 1. Reprocessing in Recycling Industry: Region wise and Polymer wise in kTA
Region PVC HDPE LD/LLD/H PP Other Total

M
West 60 113 78 65 12 328
North 135 45 38 35 14 267
South 53 41 30 29 09 162
East 34 29 04 20 04 91
Total 282 228 150 149 39 848
Source: Nanavaty, 1997.
Table 2. Region wise and Polymer wise Turnover of Recycling Industry at Pelletisation
stage in Rs. Crore ( 1 crore = 10 million)
Region PVC HDPE LD/LLD PP Others Total

West 156 383 360 225 30 1154
East 75 86 12 70 9 252
North 338 158 125 126 36 783
South 111 139 108 89 23 470
Total 680 766 605 510 98 2659
Source: Nanavaty, 1997.
Each region is also specialized in one type of plastic, viz. North: PVC; South: HDPE; West: all
types but more emphasis on LDPE and LLDPE; East: PP. It was suggested that one million tone
of waste plastic would have been recycled or otherwise reused in 1996 - including 40% of 1995
consumption of virgin plastic and 30 % of pre 1995 production which had been reprocessed
before.
The number of people engaged in recycling sector is unknown but vast. Some figures suggest
that 750,000 people are employed including 86,000 rag pickers specialized in plastics (Harriman
Chemsult, 1996). On an average 15 persons are required to process 240 MT/annum. Using this
norm it is estimated that more than 54,000 people are employed in processing alone.
11
2.2 Recycling Industry in Bangalore
2.2.1 Overview
As per an estimate, Bangalore has around 300 reprocessing units with main thrust on recycling
of all polyolefins and PVC although PVC recycling units are only 7 to 10. 70 % to 80 % of the
collected, post-consumer waste is exported to Delhi, Bombay and Gujarat for reprocessing.
Jolly Maholla is the center for the purchase of scrap material whereas the reprocessing units are
spread all over Bangalore with more concentration in Nayandahalli and New Timber Market on
Mysore Road. In Nayandahalli itself around 100 pelletisation and product manufacturing units
are located.
2.2.2 Amount of Plastic Waste Recycled

According to a study, 25,000 and odd number of waste pickers or chapparwalas as known in the
local language, recover 15 % of the refuse, of which 4.08 % is estimated as plastic. On an
average, a waste picker picks 8 kgs. of plastic waste and works for 17 days a month. That
accounts to 136 kgs. of plastic waste picked by a waste picker in a month. If this is averaged out
to 30 days of picking in a month, per day 25,000 waste pickers can
collect 136 tons of plastic waste.
In addition there are estimated 3000-4000 itinerant waste buyers in Bangalore and if they collect
average 10 kgs of plastic waste per day for 25 days of a month, 250 kgs of plastic waste is
collected by a itinerant waste buyer in a month. If it is averaged out to 30 days of collection in a
month an IWB collects 8 kgs per day of plastic waste. This amounts to total 28 tons of plastic
waste collected by all itinerant waste buyers in Bangalore. If 80% of total 164 tons of plastic
waste traded is exported out of Bangalore, remaining 20% i.e. 32.8 tons per day of post-
consumer plastic waste is circulated in Bangalore. Assuming 250 kgs per day of recycling
capacity of a unit and estimated 300 such units in Bangalore 75 tons of plastic waste is recycled
everyday. Of which 32.8 (43%) tons is post consumer waste and rest is acquired through
industrial sources.
2.2.3 Nature of Plastic Recycling Units

Most of the reprocessing units are operated as a micro enterprise, in an informal way. There is no
clear data regarding the ethnic composition of the work force. However, it is observed that the
waste pickers generally belong to the state of Tamilnadu whereas the business of scrap sorting
and marketing is dominated by Muslims. Marwadis and Gujaratis, migrated from western part of
India, are predominantly owners of reprocessing units. Nearly 90% of the units located in
Nayandahalli are said to be owned by Marwadis with close caste and kin relationships. Majority
of the male laborers employed in reprocessing units belong to Hindi speaking states of Uttar
Pradesh, Bihar, Rajasthan, Gujarat and Orissa. Local laborers were evidently less compared to
migrant workers. Local Women are employed mainly for cleaning, sorting and washing of raw
material. They are generally not employed to work on the machine.
12
The reprocessing units are clustered in a similar pattern as small scale textile units are clustered
in Gujarat and tannery units in parts of Tamilnadu. Although an individual unit is operated and
managed in small scale, the units are located side by side in a series and are identical in terms of
technology, processing methods, type and variety of raw material used and final products
manufactured. The "mysteries" of trade become no mysteries and nothing is "business secret" in
such an environment.
The final product of the units, be it pellets or consumer items, is generally produced only on
order basis. Majority of the units even purchase the scrap only after receiving the order for either
pellets or product with specifications. Depending upon the order specifications in terms of type,
desired strength, purpose, color and shape the nearest suitable type of scrap is either purchased
or sorted from the mixed waste in-house. Evidently each unit is specialized in specific type/types
of waste and both purchase of scrap and sale of final product take place through contacts which
are developed through years of experience in the business. Some of the units also accept job
work wherein the scrap is purchased and sent for processing to the recycling unit by a concerned
party. In such case the task for the recycling unit is to provide labor, service and machinery and
flat rate per kg of plastic recycled is charged.
Since the industry operates on demand basis, the proximity of the market is very essential. In
other words the ability to respond quickly to the market needs seems to be the key factor for
survival of this industry. This could explain why the scrap, rather than the pellets or products is
exported to Northern and Western parts of India.
2.2.4 Types of Plastic Waste

The reprocessor purchases plastic scrap according to various grades. The following is an account
of approximate distinction (Leidner, 1981):
Grade A: This waste is produced during plastic manufacturing and compounding.

Generally, this material is mixed, reformulated and sold. This grade retains 95%
of the original properties. Approximately 40% of this waste is used within the
plastic manufacturing and rest is sold to make pellets. In the unit where it is
generated, often a closed loop is used where the scrap never leaves the line on
which it is generated. It is also known as uncontaminated single resin waste.
Evidently this grade of waste is not recycled in Bangalore.
Grade B: This is generated during fabrications and conversions operations. If kept separate
and clean it is usually recycled by regrinding and remixing with virgin material. It
retains 75 to 80% of the original properties.
Grade C: is comprised of post-consumer articles which are either collected directly from
the households, corporation bins or from the refuse dumps. Properties depend on
the level of contamination, sorting and washing.
Grade D: is the lowest grade material which is inferior quality road waste, aggregate of
plastic of unknown sources or inferior quality due to defects.
13
Wastes Produced During Fabrication
This category includes mainly machine waste generated during both processing and reprocessing
plastic. Generally, in the next cycle itself they are ground and processed within the processing
unit or sold to recycling unit.
Extrusion produces waste from equipment start up and from trimming and cutting of the
final product.
Injection molding produces wastes from runners and sprues in addition to machine setup
and purging.
In blow molding waste originates from pinch off.
In addition to these types of plastics fairly clean varieties of plastic waste is generated from other
industrial or agricultural sectors as well. Discarded Electric conduits are one such source. Other
sources include pipes used for irrigation and water conveyance or automobile waste generated in
the garages. These varieties of the waste are collected from the source of generation itself and
hence remain relatively clean.
Any plastic looses, once recycled for the first time, 10-15% of its original properties if additives
are not mixed. A second recycling would further decrease the quality by 30-40%. Hence, the
final product is manufactured with a combination of grades or in combination with virgin plastic.
The blend is decided on the basis of the desired quality of the final product.
The manufacturers seem to have a tendency to add some amount of recycled plastic even in the
product supposed to be made of virgin plastic. This is possible because most of the plastic
processing units are also small scale, micro enterprises and the difference in terms of machinery
and expertise used for processing or reprocessing of plastic items is marginal.
2.2.5 Types of Reprocessing Units
There are four types of reprocessing units based on the final product:
Pellet making units: These units make pellets on the basis of order. They also rent the
unit, labor and machinery for job work.
Pellet-cum-Product making Units: These units produce pellets or products and purchase
and reprocess the scrap on the basis of the order for the final product.
Recycled Product making Units: These units purchase recycled pellets and make
products out of reprocessed pellets only.
Product making Units: These units make products of either virgin plastic, blend or
reprocessed plastic.
In Bangalore mainly polyolefins [which include High Density Polyethylene (HDPE), Linear
Low Density Polyethylene (LLDPE), Low Density Polyethylene (LDPE), High Molecular
Weight Polyethylene (HMPE), and Polypropylene (PP)] and Poly Vinyl Chloride (PVC) are
14
reprocessed. Part of the polyolefins, PVC in addition to Polystyrene and PET are exported to
other parts of India.
Table 3. Application of Recycled Plastics
Type Method Application

HDPE/LLDPE/ Injection Molding and Kodams, Bottles, Toys, flower Pots,
LDPE/HMPE Blow Molding or Traffic Cones, Buckets, Tumblers,
Calendaring Household Items, Sacks, Agriculture
Drainage Pipes, Bags, Sheets
LDPE Calendaring Garbage bags, grocery Bags, Sheets,
Carry Bags
PP Injection Molding or Buckets, Kodams, Household Items,
Blow Molding after Suitcases,
controlled degradation
PVC Injection Molding, Electric Conduits, Drainage Pipes,
Calendaring Irrigation Pipes, Bottles, Footwear,
Cables, Medicine Covers, Rigid Pipes
2.3 Associations/Organisations Dealing with Plastics
The Department of Chemicals and Petrochemicals in the Ministry of Chemicals and Fertilizers of
the Government of India is the nodal agency for petrochemicals including plastics. On producers
side, there are two prominent associations of polymer producers, viz., Chemicals and
Petrochemicals Manufacturers Associations and PVC Manufacturers Association. There are
various national and regional organisations of plastic processing and conversion industries.
Significant among them at the national level are: All India Plastic Manufacturers Association,
Organisations of Plastic Processors of India, Plast India Foundation, All India Federation of
Plastics Industries and Indian Plastics Federation, The Plastics Woven Sacks Manufacturers
Association and All India Flat Tape Manufacturers Association. Institutions like Central Institute
of Plastics Engineering and Technology (CIPET) and Indian Plastics Institute play a catalytic
role for human power development and technology feedback. Plastic recyclers are organised into
Waste Dealers Association and All India Plastic Waste Recycling Industries Association
(TPMA, 1995).
2.4 Recycling Technologies
There are mainly three approaches to recycling: mechanical recycling, mixed waste recycling
and feed stock recycling. For all practical purposes, plastic waste is recycled by mechanical
recycling in India. This method needs unmixed waste material in economically viable quantities.
Mechanical recycling undergoes four typical stages: sorting, size reduction, washing, separation
15
at chop level and melt processing. Mechanical recycling lines have been developed for nearly all
major thermoplastics.
Mixed waste processing involves use of coupling agent. This technology is not widely used as
plastic waste is sorted and used as single material for mechanical processing. In the process of
feed stock recycling the macromolecular structure is broken down to basic monomers/ chemical
and this is subsequently used for the manufacture of plastics. In India this technique is restricted
to materials like PET and Polyamide.
2.5 Policy Issues
2.5.1 Regulation
The National Waste Management Council of Environment and Forest, of which State Municipal
Commissioner and Environment Secretaries are members, periodically discusses plastic waste
management practices to arrive at future strategies. The National task force on plastic waste
management is also set up by the Ministry of Environment and Forestry. The Ministry has issued
criteria for labeling plastic products as environmentally friendly under "Ecomark Scheme" in
association with Bureau of Indian Standards. These criteria suggest end use of recycled plastic
products. Bureau of Indian Standards has also developed specifications for thermoplastic
products such as molded briefcases, packaging material, reflector and light fittings, and
polythene buckets (TPMA, 1995). However these standards and specification are not mandatory
and hence non-enforceable.
References:
Harriman Chemsult. 1996. "Major Growth Market Addresses Modern Plastics Waste
Management", News Letter No. 37, Dec.
Leidner J. 1981. Plastics Waste, New York: Marcel Dekker Inc.
Nanavaty K. 1997. "Recycling of Plastics: Indian Experience", Paper Presented at 3 rd
International Plastics Exhibition and Conference on Environment/Recycling of Plastics,
New Delhi: Plast India Foundation.
Sundaresan E. 1996. "Environment and Plastics Recycling Future", IPI Transactions: Reliance
Industries Limited, Mumbai.
The Karnataka Small Scale Plastic Manufacturers' Association. 1991-92. A Guide to Plastics,
Bangalore.
16
CHAPTER 3 PLASTIC RECOVERY : PROCESS, PRACTICES AND
FINANCIAL ANALYSIS
Part I: PROCESS AND PRACTICES
3.1 Recovery of Plastic Waste
3.1.1 Waste Picker

According to a study conducted in 1994 there are 25,000 waste pickers in Bangalore (Asha,
1991). Waste pickers collect plastic as one among the other waste material and typically plastic
accounts for 47.8 % (weight wise) (Shyamala, 1994) and constitute 36% of his/her total income.
Although metal fetches maximum amount of return per unit weight, plastic is the most attractive
material for waste picking. The amount of metal reaching waste stream is very less compared to
paper and plastic. Paper has inherent character to be soggy if spent more time in waste bin.
Besides, clean paper waste like News Paper, Notebooks and Magazines do not reach community
waste bin at all. Hence, plastic becomes relatively significant material for waste picking.
However, not all plastic is collected by waste pickers. Only that plastic which has direct salable
value is picked up as waste picking is primarily an economic activity. Widely sought after
materials in Bangalore include all items made of HDPE, LLDPE, LDPE, HMPE and PP. Milk
sachets and carry bags are regular items collected by a waste picker. A close observation of the
waste pickers activity revealed that not all types of the plastic has salable value. Small bits of
plastic, contaminated with food material or dust and mud are not collected. Even milk sachets are
left uncollected if highly contaminated and smelly. Plastic covers on medicine strips, bottles
used for packing edible oil, cold drink bottles like Pepsi etc., are some of the striking examples
of uncollected material. Furthermore, composite plastics, for example used for packing chips,
tea, chocolates etc., are not taken obviously as they can not be recycled easily.
Generally a waste picker sells his/her waste everyday. The collected plastic matter may be
further sorted into milk sachets, Pugga, road waste and mixed category ( or Masala as it is
known in their language). There seems to be no standardization in classifying the collected waste
as what plastic waste falls in what category depends on the waste pickers perception and his/her
capacity to negotiate price. It is felt that at this level the plastics which can be easily associated
with its previous use are put in Pugga, those which can not be easily identified are labeled as
mixed, which also contains carry bags, and small, contaminated bits are packed in road waste
category. Milk covers are either categorized as Pugga or kept separately if given better price.
Majority of the waste pickers interviewed told that around 10 % of plastics collected is discarded
by the Junk Dealer before paying the price.
17
3.2 Kabadiwala
Kabadiwalas (or cyclewala) collect waste directly from household. The quality of their waste is,
therefore, higher. They collect milk sachets, which are separately kept after washing, bottles,
broken buckets, baskets, toys and other household items. Since the collected waste is generally
sorted and stored by householders not much sorting is required by a Kabadiwala. On an average
plastic items account for 14% of their income.
3.3 Middle Dealer
The main sources of waste collection are waste pickers, Kabadiwalas, servants, citizens,
institutions and industries. As per an assessment the share of supply is as follow: waste pickers
(28 %), factories (25 %), Households (24 %), Kabadiwalas (19 %) and institutions (4 %). This is
a broad figure covering all types of waste and does not indicate supply of plastic material. On an
average plastics amounts for 35 to 45% of sales of a Junk Dealer's shop.
A Junk Dealer runs his business in a small shop generally located in a residential area. It is
estimated that Bangalore has 600 and odd number of Junk Dealers shops. A shop barely
measures a maximum of 20 ft x 20 ft and is piled up with sorted and unsorted waste. Sorting is
done either in the open space in front of the shop or near his residence. A few may have access to
an open plot, generally a public property. Shops have minimum accessories like weighing scale
and generally do not have electricity.
A fixed number of waste picker supply at his place. Prices are negotiated and are not changed
frequently. A waste pickers reputation with a Junk Dealer brings him/her a better price rather
than the quality of the waste for, regularity of waste supply is more important for a Junk Dealer
than quality. The relationship between waste pickers and Junk Dealers is a mutual one. In
exchange of the regular supply of waste, a Junk Dealer extends credit to a waste picker. A Junk
Dealer may use waste pickers services for sorting and in turn either give him place to stay or
protect him from police harassment. It is essential for both the parties to build long lasting
relationship for the success of their respective businesses. In addition, labor of a relative staying
at Junk Dealer's place and other family members like wife and children may also be employed
for sorting.
A major investment for a Junk Dealer is towards land and building. In most of the cases, the
shop is rented for a fixed advance which is the only investment other than the money spent for
the weighing scale. He has to have working capital for a month in his hand before starting the
business. Investment money is raised from family sources. Loans, other than small credits from
Wholesalers in time of need, are least expected. Sometimes money is raised by selling the village
land or borrowed from village sources.
It takes time to understand the intricacies of waste business. Before starting his own business a
Junk Dealer generally works at a relative's shop either as a shop keeper or as a Kabadiwala and
18
inherits contacts along with business skills. A waste picker starting his own business as Junk
Dealer is very rare.
The waste is sold generally once a week as a shop has storing capacity of a week's waste. Each
Junk Dealer has a set of regular customers and different categories of waste are sold to different
Wholesalers specialized in the categories of waste. Depending upon the demand transportation
charges are borne by the either of the party. If in need of waste, Wholesaler sends a tempo,
otherwise transportation charges are born by the Junk Dealer.
3.3.1 Sorting
Depending upon his capacity a Junk Dealer sorts waste in to the varieties mentioned below.
However, only the highest and the lowest level of sorting generally done at this stage are
mentioned below. Between these extreme levels of sorting, there exists range of levels of sorting.
Lowest Level of Sorting

Plastic waste is sorted into two types: all colors of carry bags of five varieties, milk covers
and other plastic bags are baled together; and hard plastic known as Pugga containing buckets,
canes, Kodams, bottles etc., are packed as the other category. Milk covers are either packed with
Pugga or kept separately.
Highest Level of Sorting

Plastic is sorted in following varieties.
Pugga: hard plastic, buckets, baskets, canes, toothpaste covers, disposable cups,
cosmetics and detergent bottles, etc.
Karak: Lids of all bottles.
Soft footwear, one variety of plastic bag made of HMPE.
Milk covers, oil and Ghee covers, thick variety of plastic packing bag.
Super white plastic thick cover ( for example packing bag for Surf detergent powder).
Hard footwear and broken lids.
Kala(black) Pugga: same as Pugga but black in color.
Carry bags are sorted in five different colors (rose, blue, green, white and yellow).
Sanitary pipes, irrigation pipes (hard), electric conduits.
Water pipes (soft).
Article: comb, switches, iron handles etc.( sometime acrylic sheets are kept in this
category).
Sheet Kadak: window planks, vegetable cutting planks, radio case, cassette covers etc.
Kadak: is like Pugga but different type of plastic. This type releases fresh and pleasant
smell immediately on breaking.
19
Above varieties indicate only broad categories of sorting and not the exact description of the
material sorted.
3.4 Wholesalers
Wholesaler generally deal with one category of waste. A plastic waste Wholesaler purchases
waste from Junk Dealers, institutions, shops and industries. Waste is sorted according to type of
plastic at this level. The separate categories of plastic such as PP or PE or PVC are recognised
hence forth. The methods generally adopted for sorting are still the same. While sorting
knowledge of type of plastic and its previous utility is more relied upon than any other method
for sorting. However, a bucket made of PP or HDPE is ascertained by smelling the plastic after
breaking. Typical categories in to which the collected waste is sorted is presented in the financial
analysis.
A Wholesaler sells waste directly to the industry. His contacts (which are built through years of
experiences in the business) with the suppliers and end users of waste is the key factor for his
business. As in the case of Junk Dealer, the Wholesaler supplies to regular customers. The
Wholesaler also exports waste outside Bangalore for which they need to obtain permit for
movement of waste across the border of various federal states.
Plastic Wholesalers are located mainly in Jolly Mohalla in Bangalore. A shop and godown
typically measures around 2000 sq. ft. Many of them have a separate shop for the business
dealings and the waste is sorted and stored in the godown.
As in the case of MIDDLE DEALER, main investment for a Wholesaler is land and building.
The Wholesalers contacted for this study received support from the family and raised money
through private loans at interest rate as high as 2 % to 5 % a month.
PART II: FINANCIAL ANALYSIS, CASE STUDIES
3.5 Waste Picker
A typical analysis of the quantity and type of waste collected by waste pickers is presented
bellow. The results are based on sample of 55 respondents, mainly women, from Kuntigrama
slum and 61 respondents, mainly men, from Bharatmata slum. Generally, a waste picker goes for
waste picking on an average 17 to 20 days a month.
Table 1.1 Quantity and Type of Material Collected

Type Amount Kg/day Price Rs./kg Total Rs./day
Paper
20
Brown Board 15-20 0.75 13
Card Board 3-4 2.50 10
Record 5-6 2.50 15
Plastic
Road Waste 4 2.00 8
Pugga and Milk Covers 2-3 9.00 24
Kadak 2 6.00 12
Glass
Beer Bottle 5-6 No. 2.00/No 12
Whisky Bottle 10 No. 0.75/No 7.5
Phenyl and Small 2-3 No. 0.50/No 1.5
Metal (all) 1 20 20
Total Rs./day 123
Considering waste picking for 17 days a month, total income per month = Rs. 2091
3.6 Kabadiwala
The following representation is aggregate of 11 Kabadiwala interviewed in Malleswaram area of
Bangalore.
21
Table 2.1 Quantity and Type of Material Collected by Kabadiwala
Type Quantity Buying Total Buying Selling Price Total
Kg/day Price Rs./day Rs./kg Selling
Rs./kg Rs./day
Paper
News Paper English 30 3.50 105 4.00 120
News Paper Kannada 25 3.00 75 3.50 88
Card Board 10 2.00 20 4.00 40
Magazines 12 2.00 24 2.50 30
Plastics
Milk Covers 3 6.00 18 8.00 24
Plastic Bottles/Items 3 8.00 24 12.00 36
Glass
Bottles Big 7 0.50 3.5 0.75 5
Beer 11 1.50 16.5 2.00 22
Whisky 5 1.00 5 2.00 10
Phenyl 10 0.50 5 0.75 8
Metal (all) 2 10.00 20 20.00 40
Total Rs./day 316 422
Profit = Rs. 106 per day x 26 days = Rs. 2756 /Month
3.7 Middle Dealer
3.7.1 Sharvana Paper Mart

J.P. Nagar II Phase
This shop is located in a residential area. The shop measures around 15 ft x 20 ft but open space
in front of the shop is used for sorting and packing activities. The open space measures around
30 ft x 40 ft. Twenty two waste pickers and eight Kabadiwalas sell their waste to this shop
regularly. Besides, residents also directly sell their News Paper to this shop. The sorted waste is
stored in godown located nearby and sold to Wholesaler weekly once.
The shopkeeper was working as a Kabadiwala in J.P. Nagar and Jayanagar area. He used to sell
his collected waste to his uncles shop. In 1980, he opened his shop with the assistance of his
uncle and capital raised from his village. Initial capital was spent towards the land, building and
purchase of scales etc.
22
None of the waste picker stay with him. His wife and brother help him in managing business. He
has a small godown, 20 ft x 30 ft, near his place to store the sorted waste.
Financial Data Analysis
Running Cost
Table 3.1.1. Waste Material and Purchase Price

Material Type Volume Dealt Volume Dealt Purchase Total Purchase
with Kg/Day with Kg/Week Price Rs./Kg Price Rs./Week
Plastic
Road Waste 75 450 2.00 500
Pugga 40 240 8.00 920
Kadak 15 90 6.00 540
Super 5 30 9.00 810
Milk Covers 10 60 5.00 540
Paper
Record 60 360 3.00 1080
Brown Board 150 900 0.60 540
News Paper 80 480 4.00 1920
Card Board 70 420 2.00 840
Magazines 40 240 3.50 840
Metal
Metals Mixed 15 90 10.00 900
Iron 20 120 4.00 480
Glass
Broken Glass 20 120 0.50 60
Whisky Bottles 8-10 No. 0.50 225
Big Bottles 18 No. 108 No. 0.75/No 81
Small Bottles 18 No. 108 No. 0.50/No 54
Beer Bottle 25-30No. 162No. 1.00/No 162
Total 12372
Total Rs. Month 49488
23
Table 3.1.2 Other Inputs
Type Total Rs./Month
Transportation 1600
Labor for Sorting (1 Man and 2 Women) 3000
Others and Electricity 1000
Total 5600
Capital Cost
Table 3.1.3 Assets

Asset Investment Capital Cost Rs.
Rs.
Land and Bldg 30,000
Evary Scale 4000
Weighing 2000
Scale
Bale Box 400
Weights 1000
Total 7400 37,400
24
Table 3.1.4 Sale after Sorting
Material Type Amount Selling Price Total Selling Price

Kg/Week Rs./Kg Rs./Week
Brown Paper 720 0.70 504
Card Board (Brown) 240 3.00 720
Card Board (Other) 120 5.00 600
Record I 200 4.50 900
Record II 210 3.50 735
News Paper English 480 6.00 2880
News Paper Kannada 160 4.00 640
Carry Bags 427 4.00 1708
Milk Covers and Super 156 13.00 2028
Pugga 60 12.00 720
Black Pugga 36 7.00 252
Bucket Items 50 14.00 700
Hard Pieces or Sheet Kadak 40 15.00 600
Chappal 20 6.00 120
Cable Wires and Pipes 25 8.00 200
Copper 16 55.00 880
Iron 20 6.00 120
Aluminum 24 35.00 840
Tin 40 5.00 200
Steel 10 18.00 180
Bottles 360No 2.00/No 720
Broken Glass 150 0.75 113
Beer Bottles 160 No. 3.00 No. 480
Big Bottles 100 No. 1.00 No. 100
Small Bottles 100 No. 0.75 No. 75
Whisky Bottles 56 No. 2.00 No. 112
Total 16407
25
Total = Rs. 65,628 per Month
Gross profit before depreciation and interest

Sales 65,628 Rs. per Month
Less Marginal costs 55,088 Rs. per Month
Total 10540 Rs. per month
Depreciation 10% on plant and machinery

7400 = 740/12 = Rs. 62 per Month
Interest on investment 12% Per annum
37400 =4488/12 = Rs. 374 per Month
-----------------------------
Total Rs. 435 per Month
Net profit.
Gross profit 10540 Rs. per Month
Less Interest and Depreciation 435 Rs. per Month
-------------------------
Total 10105 Rs. per Month
Rentability Analysis
1. Product ratio = 16140/65628 x 100% = 24.59%
2. Gross profit ratio = 10540/65628 x 100% = 16%
3. Return on investment =10105/37400 x 100% = 27%
4. Financial capacity analysis

Interest ratio =374/10105 x 100% = 3.7 %
5. Vulnerability analysis
a) Quality ratio = 47000/52000 x 100 = 90.38 %
Note: This ratio is calculated only for plastics purchased and sold by the junk dealer.
Purchase price of different plastic scrape is averaged out to Rs. 5000 /ton. The average
sale price of virgin plastic is taken as Rs. 52,000 per ton.)
b) Fixed costs ratio =37400/65628 x 100% = 56.98 %
c) Net Profit ratio = 10105/65628 x 100 = 15.39 %
26
3.7.2 Vazeer Ahemad
Bharatmata Slum
Pillana Garden
Bangalore - 560 045.
Vazeer belongs to Bangalore. He first started a cycle mechanic shop when he moved in to
Bharatmata slum in 1989. Later, he started his own scrap with the help of a relative who deals
with metal and iron scrap. Metal scrap is easily available on Tannery road and number of waste
pickers in the slum of his residence sold appreciable quantity of scrap. He started his shop within
the slum in the corner of his home and later expanded it to his sisters house. At present, 8-10
waste pickers and surrounding households supply their waste to him.
Running Cost
Table 3.2.1 Raw Material

Type Volume Volume Dealt Purchase Total
Dealt Kg/Week Price Rs./Kg Purchase
Kg/Day Price
Rs./Week
Paper
Brown Board, Card Board, 160 960 0.70 672
Record Mixed
Record 15 90 2.50 225
Plastic
Road Waste 24 168 3.00 504
Milk Covers and Pugga 20 120 8.00 960
Kadak 17 102 9.00 918
Metal
Tagadu and Metal 6 36 6.00 216
Kabuni 40 240 5.00 1200
Bottles
Liquor Bottles and Brown 65No. 360 No. 1.00/No. 360
Bottles
Total 5056
Total Rs. per Month 20224
27
Rent 300
Transportation 650
Labor for Sorting 2500
Others 350
Total 3800
Capital Cost
Table 3.2.3 Assets

Asset Investment
Rs.
Weighing 2000
Scale
Bale Box 400
Weights 1000
Total 3000
28
Card Board 40 3.50 140
Record 120 3.00 360
Carry Bags 168 4.00 1032
Milk Covers 50 12.00 600
Pugga 35 18.00 630
Hard Pieces 60 6.00 360
Chappal 15 7.00 105
Iron 240 6.00 1440
Aluminium 9 40.00 360
Tin 14 5.00 70
Steel 13 14.00 132
Bottles 360No 2.00/No 720
Total 7509


3000 = 300/12 = Rs. 25 per Month
6000 = 600/12 = Rs. 50 per Month
Total Rs. 75 per Month
29
Net profit.
Less Interest and depreciation 75 Rs. per Month
1. Product ratio = 9821/30036 x 100% = 32.66%
2. Gross profit ratio = 6012/30036 x 100% = 20%
3. Return on investment = 5937/6000 x 100% = 99%

Interest ratio = 50/5987 x 100% = 0.83%
a) Quality ratio = 45333/52000 x 100 = 87 %
Purchase price of different plastic scrape is averaged out to Rs. 6666 /ton. The average
sale price of virgin plastic is taken as Rs. 52,000 per ton.)
b) Fixed costs ratio = 6000/30036 x 100% = 20 %
c) Net Profit ratio = 5937/30036 x 100 = 20 %
3.7.3 Gora Babu

Vasanth Nagar
Near Cantonment Station
Bangalore
Babu started his business in 1980. Prior to that he was working as a Kabadiwala in his Uncles
shop. He worked there for 6 years. He hails from Nagucoil from Tamilnadu and came to
Bangalore in 1974. While working with his Uncle he developed contacts with wholesalers.
Eventually, some of the waste pickers selling to his Uncle started selling to him and with his
Uncles financial help he started his own business. He also occupied an open space near his
residence in a slum as a storage place. At present, 8-10 waste pickers supply to him.
Financial Data Collection
Running Cost
30
Type Volume Volume Purchase Total
Dealt Dealt Price Rs./Kg Purchase
Kg/Day Kg/Week Price
Rs./Week
Brown Board, Record Mixed 136 816 0.75 612
News Paper 6 33 3.00 99
Card Board 49 294 2.25 661
Road Waste 40 240 2.00 480
Milk Covers, Pugga and Mixed 42 250 8.00 2000
Tin 0.25 9 3.00 27
Iron 20 120 4.00 480
Beer Bottles 50No. 300 No. 1.00/No. 300
Whisky Bottles 70No. 420 No. 0.75/No. 315
Big Bottles 20No. 120 No. 0.50/No. 60
Total 5034

Rent 600
Transportation 640
Others 500
Total 3660
31
Capital Cost
Table 3.3.3 Assets

Asset Investment
Rs.
Weighing 2000
Scale
Bale Box 400
Weights 1000
Total 3000

Card Board 294 2.50 735
Record 96 3.50 336
News Paper 33 4.00 132
Milk Covers 75 12.00 900
Pugga 45 14.00 675
Road waste 240 3.00 720
Iron 120 5.50 660
Tin 9 4.00 36
Beer 280 No. 2.00/No. 560
Whisky 60 No. 1.00/No. 60
Big Bottles 100 No. 1.00/No. 100
Broken 75 0.50 37
Total 7610
32


3000 = 300/12 = 25 Rs. per Month
6500 = 650/12 = 54 Rs. per Month
Net profit.
1. Product ratio = 10304/30440 x 100% = 33.85%
2. Gross profit ratio = 6644/30440 x 100% = 21.82 %
3. Return on investment = 6565/6500 x 100% = 101%

Interest ratio = 54/6565 x 100% = 0.82%
a) Quality ratio = 47000/52000 x 100 = 90.38 %
Purchase price of different plastic scrape is averaged out to 5000 Rs./ton. The average
sales price of virgin plastic is taken as 52,000 Rs. per ton.)
b) Fixed costs ratio = 6500/30440 x 100% = 21.32 %
33
3.7.4 Ibrahim
Nagashettyhalli Main Road
RMV Extension, Bangalore - 94
Ibrahim started his waste buying shop in 1976 with the help of his elder brother who is a small
wholesaler in Jolly Mohallah. Prior to starting this shop, he was working in his brothers shop.
Initially he was purchasing waste from 10 -12 waste pickers living in the slum where he was
staying. In 1983, he rented the shop from where he is operating at present. Besides this shop, he
has two more shops which are managed by his younger brother and his son. Around 25 waste
pickers and 12 kabadiwalas are selling their waste to him. The waste materials purchased in the
three shops are stored in a godown situated in his slum. Data presented in this section is based
on the quantities bought and purchased in one shop.
34
Running Cost
Raw Material
Type Volume Volume Dealt Purchase Price Total Purchase Price
Dealt Kg/Month Rs./Kg Rs./Month
Kg/Day
Paper
Brown Board 97 2520 0.70 1764
News Paper English 97 2520 5.00 12600
News Paper Kannada 92 2400 3.00 7200
Magazines 35 920 4.00 3680
Card Board 38 990 2.50 2475
Record 82 2136 2.50 5340
Plastic
Road Waste 17 450 2.00 900
Pugga and Mixed 15 402 8.00 3216
Kadak 14 354 6.00 2124
HDPE 6 144 10.00 1440
Metal
Tin 35 840 4.00 3360
Iron 50 1200 5.00 6000
Steel 50 1200 10.00 12000
Mixed 3 65 20.00 1300
Bottles
Beer Bottles 40No. 1040 No. 2.00/No. 2080
Whisky Bottles 90No. 2340 No. 0.75/No. 1755
Phenyl 35No. 840 No. 0.50/No. 420
Small Bottles White 15No. 360 No. 0.50/No. 180
Small Bottles Color 25No. 600 No. 0.40/No. 240
35
Other Inputs
Transportation 12800
Others 4000
Total 27200
Capital Cost
Table 3.4.3 Assets

Asset Investment Rs. Advance Rs.
40,000
Weighing Scale 2000
Every Scale 4000
Weights 1000
Total 7000 47,000

Material Type Amount Selling Price Selling Price
Kg/Month Rs./Kg Rs./Month
Brown Paper I 2270 2.00 4540
Brown Paper II 250 1.00 250
Card Board 900 4.00 3600
Record I 1210 4.00 4840
Record II 900 3.00 2700
News Paper English 2520 6.00 15120
News Paper Kannada 2400 4.00 9600
Magazines 920 4.00 14720
Carry Bags White 150 4.00 600
Carry Bags Color 115 3.00 345
Milk Covers 150 13.00 1950
36
Pugga 170 14.00 2380
Kala Pugga 75 9.00 675
PP White 150 5.00 750
PP Color 150 4.00 600
Kadak Light 90 14.00 1260
Kadak Heavy 70 18.00 1260
Karak 30 40.00 1200
Iron 1200 7.00 8400
Tin 840 5.00 4200
Aluminum 20 58.00 1160
Brass 12 75.00 900
Copper 28 100.00 2800
Rods 1200 20.00 24000
Beer Bottles 1000No. 2.50/No. 2500
Whisky Bottles 2000No. 1.00/No. 2000
Phenyl Bottles 840 No. 0.75/No. 630
Small White Bottles 360 No. 0.75/No. 270
Small Color Bottles 600 No. 0.50/No. 300
Broken Cullets 300 0.50 150
37
Total Rs. per Month = 1,16,220 Rs.

Sales 1,16,220 Rs. per Month
Less Marginal costs 1,02,274 Rs. per Month

7000 = 700/12 = 58 Rs. per Month
47,000 =5640/12 =470 Rs. per Month
Net profit.
1. Product ratio = 48146/116220 x 100% = 41.42%
2. Gross profit ratio = 13946/116220 x 100% = 12 %
3. Return on investment =13417/47000 x 100% = 28.54%

Interest ratio =470/13417 x 100% = 3.5 %
a) Quality ratio = 45500/52000 x 100 = 87.50 %
Purchase price of different plastic scrape is averaged out to 6500 Rs./ton. The average
sales price of virgin plastic is taken as 52,000 Rs. per ton.)
38
3.8 Wholesaler
3.8.1 Razaque Bhaiya

III rd Cross, S.G. Narayana Layout
J.C. Road
Bangalore
Before starting this business in 1982, Razaque Bhaiya was involved in leather business. He
moved to Bangalore from Tamilnadu as he incurred loss in leather business. He first joined his
two brothers involved in waste plastic and metal trade. They eventually helped him to set up
business of his own. He owns one godown-cum-shop and one godown originally purchased by
his brother in 1975. He deals only with plastic waste. He gets waste from 8-10 Junk Dealers, 6-8
Kabadiwalas, 4 companies and institutions and a few shops from J.C. road. He also receives oil
and Jerry cans from shops located on J.C. road.
Running Cost

Type Volume Dealt Volume Dealt Purchase Price Total Rs./Month
Kg/Week Kg/Month Rs./Kg
Pugga 2400 9600 15.00 1,44,000
Kadak 970 3880 21.00 81,480
Hard Pieces 800 3200 7.50 24,000
Chappal ( Foot Wear) 500 2000 8.00 16,000
Carry Bags 2000 8000 8.00 64,000
HDPE Bags 900 3600 15.00 54,000
Total Rs. per Month 3,83,480
39
1. Men (2) @ Rs. 1500 per Month 3000
2. Women (2) @ Rs. 1000 per Month 2000
3. Boys (8) @ Rs. 80 per Day, 3 days a week 2880
4. Loading, unloading, transporting 4320
Others 5000
Total 42200
Capital Cost
Table 4.1.3 Assets

55,000
Weighing Scale 4000
Every Scale 4000
Weights 2000
Total 10000 65,000
40
Sale after Sorting
Material Type Amount Kg/Month Selling Price Rs./Kg Selling Rs./Month
Pugga
HDPE (Kodams, Cans) 2000 20.00 40,000
LDPE (Toilet Items) 1200 16.00 19,200
LDPE (Cans, Buckets) 900 4.00 21,600
HDPE and PP 1840 16.00 29,440
PP Black 600 20.00 12,000
Leyland Sheet (Bus Seat Covers etc.,.) 400 12.00 4800
HMPE (Bags, Stopper etc.,) 720 15.00 10,800
PVC Items 1000 22.00 35,200
Kadak
PVC + PP 800 12.00 9,600
ABS 1600 20.00 32,000
Acrylic Sheet 900 14.00 12,600
Gown Katha (Items made of Virgin PVC) 280 20.00 5,600
Hard Pieces
Black PVC 1200 9.00 10,800
White PVC 800 10.00 8,000
Derlyne (Drips etc.,) 800 10.00 16,000
x-ray Items 100 40.00 4,000
Slipper
Foam 640 10.00 6,400
Sandak 720 10.00 7,200
Hard Pieces 720 11.00 7,920
HDPE Bags
HDPE Bags 2400 14.00 33,600
Super Bags 1800 15.00 27,000
Carry Bags
PP I 2000 20.00 20,000
PP II 900 8.00 7,200
LDPE Bags 2400 10.00 24,000
HM Bags 1600 8.00 14,400
Rejected Bags 400 6.00 2,400
41
Total = Rs. 4,67,760 per Month

Total 42,080 Rs. per month

10000 =1000/12 = 83 Rs. per Month
55,000 =6600/12 = 550 Rs. per Month
Net profit.
Gross profit 40,080 Rs. per Month
Total 41,447 Rs. per Month
1. Product ratio =84280/467760 x 100% = 18.10%
2. Gross profit ratio = 42080/467760 x 100% = 9 %

Interest ratio =550/41447 x 100% = 1.32%
a) Quality ratio = 39583/52000 x 100 = 76.12 %
Note: The purchase price of different plastic scrape is averaged out to 12416 Rs./ton. The
average sales price of virgin plastic is taken as 52,000 Rs. per ton.)
43
3.8.2 Mahaboob Ali Khan
Asian Plastic Traders
16/1 Jolly Masjid Road
Bangalore.
His business is 11 years old. Prior to starting waste shop he had retail shop for waste purchase in
Bamboo Bazar and provision stores. With expanding business his four sons also joined him and
they restricted themselves to plastic purchase and selling. He owns a small blow mounlding
plastic recycling unit as well.
Financial Data Analyais
Running Cost
Raw Material
Type Volume Dealt Purchase Price Total Rs./Week
Kg/Week Rs./Kg
Pugga 650 20.00 13,000
Kadak 400 25.00 10,000
Super 700 15.00 10,500
PVC 500 15.00 7,500
Road Waste 1200 12.00 14,400
44
Other Inputs
1. Men (2) @ Rs. 1950 per Month 3900
2. Women (4) @ Rs. 1040 per Month 4160
Rent 6000
Water 600
Electricity 300
Telephone 2000
Total 31960
Capital Cost
Table 4.1.3 Assets

Advance 40,000
Weighing Scale 4000
Other equipement 2000
Total 6000 46,000
45
Sale after Sorting
Material Type Amount Selling Price Total Selling

Kg/Week Rs./Kg Price Rs./Week
Milk Covers 200 19.00 3,800
Arrak (Country Liquor) Covers 300 20.00 6,000
Oil Covers 100 18.00 1,800
Nirma/Surf Covers 50 18.00 900
Jerry Cans/Bucket Items 250 25.00 6,250
Kala Pugga 100 22.00 2,200
Pen 50 22.00 1,100
LDPE (Kodams, Bucket Items) 200 25.00 5,000
PVC Items 500 28.00 14,400
Kadak (light) 250 32.00 8,000
Kadak (heavy) 100 40.00 8,000
HDPE Bags ( white) 100 20.00 2,000
LDPE Bags (white) 100 16.00 1,600
PP (white) 400 15.00 6,000
PP (color) 200 14.00 2,800
HMPE ( white) 100 18.00 1,800
HMPE (color) 100 18.00 1,800
46

Total 40,240 Rs. per month

6000 = 600/12 = 50 Rs. per Month
46,000 =4600/12 = 383 Rs. per Month
Net profit.
1. Product ratio =72200/293800 x 100% = 24.57%
2. Gross profit ratio = 40240/293800 x 100% = 13.69%

Interest ratio =383/39806 x 100% = 0.96%
a) Quality ratio = 34600/52000 x 100 = 66.50 %
Note: The purchase price of different plastic scrape is averaged out to 17400 Rs./ton. The
average sales price of virgin plastic is taken as 52,000 Rs. per ton.)
References
Asha Dsouza. 1991. Waste That People Want, Bangalore: Mimeo.

Shyamala K. et al. 1994. Why Recycling: Findings of a Survey Conducted in Two Market
Areas in Bangalore, Monograph on Solid Waste Management, Bangalore: Center for
Environment Education.
47
CHAPTER 4 PLASTIC REPROCESSING: PROCESS, PRACTICES AND
FINANCIAL ANALYSIS
CHAPTER I: PROCESS AND PRACTICES
4.1 Definition
Plastic is an organic material which on application of adequate heat and pressure can be caused
to flow and take up a desired shape which will be retained when the applied heat and pressure
are withdrawn. Chemically, a polymer is defined as a substance composed of very large
molecules. The molecular structure corresponds to a chain composed of many small molecules
joined by chemical bonds. One or more types of small molecules, also known as monomers, are
incorporated into the polymer as it is synthesized in control conditions (Brandrup, 1975).
From the view point of recycling, plastics (or polymers as it is known in the language of material
sciences) can be subdivided in two main categories: thermoplastics, which consists of individual
long chain molecules and any product made of this plastic can be reprocessed; and thermoset
plastics which contain infinite three dimensional network which is formed when the product is in
the final form and can not be broken down by reheating (Brandrup, 1975). Hence, for the
purpose of this report only thermoplastics are analysed.
By definition plastics can be reheated and modified in different shape. Theoretically this process
can be repeated number of times but practically it depends upon the physical conditions in which
it is processed and reprocessed.
4.2 Reprocessing
4.2.1 Types of Polymers Reprocessed
Polyolefins
Polyolefins are the worlds most important class of polymer in terms of volume usage and
simplest in terms of composition. They are long chain hydrocarbons consisting of polymer of
alpha-olefins, with molecular weight ranging from a few thousands to few millions. There are
various varieties of polyolefins and they differ from one another in molecular weight.
Polyolefins are the thermoplastics with easy processing and reprocessing characteristics and
hence widely sought after polymer for recycling all over the world.
Important varieties in this category are: Polyethylene-Low Density(LDPE) has moderate degree
of crystallinity (50%) because the molecular chain has numerous short chain branches. It is non
brittle plastic with easy processibility, moderate hardness and low softening temperature.
Polyethylene-High Density (HDPE) has little or no branching or side chains. It has higher
stiffness, strength and melting point. Polyethylene-Linear Low Density (LLDPE) has a degree of
48
crystallinity and properties generally intermediate between conventional high and low density
polyethylene. Commercially available Polypropylene has high degree of crystallinity, high
stiffness, strength and melting point (Mcmillan, 1996; Ross, 1996).
Table 4. Important Properties of Polyolefins
Property Units LDPE LLDPE HDPE PP

Melt flow g/10 min 9.3 12.6 8.2 9.6
Density g/cm 0.92 0.932 0.95 0.902
Viscat Soft 0C 92 106 122 143
Temp.
Source: Mcmillan, 1996.
PVC
Polyvinyl chlorine resin, or PVC are derived from vinyl chloride monomer in which vinyl
chloride accounts for 50 to 100% by weight. Vinyl chloride monomer is a gaseous, chlorine
containing hydrocarbon. In world wide commercial importance, PVC resins outrank other
polymers in terms of application and total tonnage of the products made. PVC is unique in
another sense that it is least stable for the commercial use. A host of the additives are required to
increase the processibility and heat resistance capacity. In addition to antioxidants, fire resistants,
impact modifiers etc., are added. Additives sometimes comprise 60% by weight of a finished
product.
PVC has remained controversial all through due to two reasons: the toxic hazards posed by the
industries producing vinyl chloride and other additives and probable impact of products of the
plastic when in use and when subjected to the extreme environment. The impact is not only on
those workers coming in intimate and prolonged physical contact with the material in question
but also influences the larger population in a variety of ways.
PVC, as such is difficult to process without stabilisers and plasticisers. Reprocessing is even
more difficult as additives are consumed in the first cycle itself and contaminants make it more
susceptible to degradation (Batiuk, 1977).
4.2.2 The Process
In-house Sorting and Cleaning
Methods of Sorting
All types of Polyethylene are compatible and great care is not taken to separate them, although
the previous use largely determines the type. However, PP and PVC require careful separation
from each other and from PE, as all the three have different molecular weight and hence different
49
melt flow index and viscat flow temperature. For example, HDPE contaminated with PP can lead
to polymer segregation as PP melts at 40o C higher than HDPE, whereas PET remains solid at
normal processing temperature and any unmelted PET present can quickly plug melt delivery
channels. The difference in densities gives the potential to separate them.
Generally, visual methods and judgements are employed to differentiate between the types of
plastics. These methods depend on the knowledge of type of plastic used for the manufacture of
the original product. Others in use include touch, feel and sound methods. When these methods
are proven insufficient, the plastic is broken and smelled or burnt. The nature of smell or fire
decides the type. This method, though scientifically proven is rarely used in practice.
Instead, water with different densities is used to separate PP, PE, PS and PVC. When soaked in
water all PE and PP float having densities less than water, whereas PS and PVC settle down. To
further separate PP from PE and separate all varieties of PE alcohol is added in water to reduce
density less than one. In 25 liters of water 2-3 liters of alcohol is added to make PP float. On
further addition of alcohol LLDPE and LDPE float and HDPE sinks. The mixture of PVC and
PS are separated in salt water with density more than one, wherein PS floats and PVC sinks. This
method, although used frequently, is not considered accurate as some varieties of plastics can not
be identified on the basis of density. For example, some grades of PP settles with PVC and PS.
This can cause problem at the time of melt processing. Hence, visual methods are considered
most reliable.
Milk sachets are generally purchased after they are separated from other plastic sheets and then
cut and cleaned manually. They are further fed into beater where mud, sand and other heavy
contaminants are removed by pounding. The same is then washed in automatic washer for two to
three times and dried before converting into chips which are fed into the extruder. Similar
procedure is followed for carry bags and other plastic sheets.
A. Polyethylene
When waste reaches the reprocessing industry it is fairly sorted as the industry generally
purchases one variety of the scrap. For example the industry may purchase scrap mainly
containing buckets, mugs, baskets, kodams, toys or milk sachets or carry bags or shampoo and
detergent bottles etc. Sorted material in terms of their previous use ensures uniformity of the
material being reprocessed. Further, sorting based on color is done in-house if the scrap contains
mixture of buckets, kodams, mugs etc. This helps to achieve uniform color of recyclate but more
importantly it ensures uniformity of the scrap being recycled. By thumb rule more times the
plastic is recycled the more it becomes darker and dull. To camouflage the degraded patches
dark blue, green, red and ultimately black color are added at the time of reprocessing. The color
and shine of the plastic scrap is therefore an important indicator to decide how many times it
might have been recycled. It is important to separate more time recycled scrap from the other
scrap to ensure quality. This judgement requires knowledge and experience based on practice.
50
For example, blow molded water carriers (locally known as Kodams) made of HDPE are
available in three qualities: Rafiya which is the highest grade and is made from used
fertiliser sacks or from milk sachets; the next quality grade is known as super which is made
from one time used bottles like Johnson powder and detergent bottles; and, the lowest
quality medium grade is made from once used Kodams.
B. Polypropylene
Polypropylene is used for thin carry bags, buckets, Kodams, household items, automobile spare-
parts, sacks etc. Different types of carry bags are separated on the basis of sound they make
when rubbed between two hands. PP gives crisp and cracking sound compared to other plastics.
In case of confusion the edge of the plastic is burnt to identify PP which gives a scented smell.
This requires skilled, experienced workers. While separating, bags are also cleaned manually to
broadly remove dust and mud and no other washing is done. These bags are then fed into
extruder to be converted into lumps which are crushed and again extruded to make granules.
Sometime the lumps are straight used to make blow molded suitcases.
Items like automobile spare parts are further sorted to remove nylon or PVC items and then
ground. The chips are put, with or without washing, in to high speed mixer to remove moisture.
If required the masterbatch of the color is mixed at this stage. The chips are fed into the extruder
at high temperature and converted into lumps which are again extruded to make granules or
straight used for product making. In a similar way, buckets, baskets, mugs and household items
are reprocessed. The reprocessed granules or lumps are used to make battery separator, buckets,
mugs, Kodams and household items.
C. PVC
It is not difficult to differentiate PVC from other plastic items. Footwear, drainage and water
pipes, irrigation pipes, electric conduits are the main PVC items which appear in the waste
stream. Uniform type is very essential for PVC recycling and hence generally one type of waste
is purchased from one wholesaler.
Garden hose, footwear and electric conduits are recycled into footwear and drainage pipes. PVC
rigid pipes and medicine covers are recycled into conduits and rigid pipes. Generally, waste is
not washed before it is ground. The chips are sometimes put in the water to ascertain the type
vis-a-vis other plastics.
Size Reduction
Once uniformity of plastic to be reprocessed is ensured the material is reduced in size depending
upon type of plastic. Thin carry bags of LDPE, LLDPE or even PP are directly fed into extruder
with or without washing. Hard plastic like buckets, baskets, mugs etc. are fed into shredder and
converted into flakes or chips of around 3 mm diameter. Whereas HDPE bags are cut and
51
converted into chips. This operation ensures uniformity in the size of input material and hence
higher output.
Both, vertical axis and horizontal axis, locally fabricated shredders were found in use. The
matter is fed at the top and the chopped flakes are collected at the bottom. This is a very noisy
operation which also generates dust. In many places shredders are operated in such a way that
few cut pieces are thrown out at high velocity. Covering the input and output sides with a cloth
bag is a simple remedy to prevent both cut pieces and dust emissions.
High Speed Mixing

If extruder screw is started when the matter inside is not properly heated, excessive load will be
created on mechanical drive. It will tend to generate high pressure when forced through the die
and either the die centering will shift or, in more severe cases, some part of the die will break.
Such a condition, known as cold extrusion is avoided by heating the matter at about 140o C-
150o C for about 15-30 minutes before starting the extruder.
The second function of high speed mixing, besides increasing the bulk density and homogeneity
of the matter, is to mix additives and colors. Adequate mixing is essential to achieve uniform
color and shade (Balachandani, 1980).
Coloring
Second or third time recycled plastic has to be colored to cover the degraded patches and also to
give new, uniform look. Previously coloring was done with powdered pigments which is still
followed by a few reprocessors. Major disadvantage of this method is that different batches of
the same colored matter fed into extruder get different shades in spite of strict controlling of the
amount of pigments added. Also, the different shades are obtained with same amount of
pigments added if the matter is extruded at different temperature. In addition, the color is not
uniformly dispersed throughout. These disadvantages are overcome with the method of adding
color in the form of masterbatch. Masterbatch is a capsule of concentrated colors with certain
additives: Silicon Dioxide for uniformity and handling ease, dispersing agents like easter and
waxes and coupling agents like salts of Silicon and Titanium. These additives are mainly to
improve the color mixing and have no impact on processing. Few brands of masterbatch are
available in market and the exact formula of different ingredients is generally maintained as a
business secrete.
Commonly used colors are Titanium oxide (white), Thelocynine (green and blue), Scarlet City
and Iron Oxide (red), Benzandine (yellow), and Cadmium (red) in addition to carbon black.
Most of the color pigments are complex organic compounds, usually with a metal chelate, which
provides the typical color. Common pigments are thallocyannins, e.g., blue, green, red etc.
Metals present include Cadmium, Copper, Iron, Tin etc. It is often seen that the pigments used
by the reprocessors are not always standard, with some pigments not being clearly identifiable as
to their composition etc.
52
Pigments used form a small proportion of the plastic being reprocessed, of the order of 0.1% of
the plastic by weight. Thus, in a typical reprocessing unit having a production capacity of 400
Kgs per day, the amount of pigment used is about 0.4 Kgs, equivalent to a metal usage of 0.05-
0.1 Kg per day.
Carbon black is usually added to make the material black in color. While other pigments are
added with a dispersing agent to prevent dust formation, in case of carbon black no such agent is
used, probably because with carbon black there would be dust anyway. Carbon black is usually
colloidal in size, and tends to deposit everywhere, and can also be inhaled and deposited in the
lungs.
Additives
The basic Polymers to which the plastic industry owes its existence are in most cases
unsuitable for processing into useful articles in their pure unmodified form.
Plastic additives may be divided into two main categories: those which modify Polymer
properties by physical means, such as plasticiser, lubricants, impact modifiers, fillers, pigments
etc.; and, additives which achieve their effect by chemical reactions such as PVC heat stabilisers,
antioxidants, ultraviolet absorbers and flame retardants.
PVC with its susceptibility requires maximum number of additives. A plasticiser improves
flexibility and processibility and alters temperature dependent properties. A widely used
plasticiser added for reprocessing is dioctyl phthalates. This plasticiser, although known for its
low toxicity and low volatility and ease of handling besides being cheap, has poor extraction
properties, is inflammable and unsuited for continuous use at elevated temperatures. Tribasic
lead sulphate, dibasic lead sulphate and lead stearate are most commonly used stabilisers to
prevent decomposition at the normal processing temperature. These stabilisers are cheap,
efficient but are toxic and should not be preferred for food packaging. However, PVC is rarely
recycled into food packaging articles. Calcium stearate, glysrene mono stearate, paraffin wax
and hydro carbon wax are commonly used lubricants in reprocessing of PVC. In addition, fillers
are added to lower the cost of composition. Additives are added and mixed in high speed mixer
but actually compounded when passed through the extruder.
All Polymeric materials are subject to oxidative degradation at elevated temperature necessary
for processing. Antioxidants- phenolic compounds should be added to combat the effect of
oxidation during reprocessing as well as subsequent service life. Particularly polyolefins are
more susceptible to oxidative degradation at processing (for that matter reprocessing as well)
temperature and unless compounded with antioxidants not only the subsequent service life is
severely shortened but odorous elements are also produced when being extruded. However, for
reprocessing of Polyolefins additives are very rarely used except pigments, which in fact,
promote the oxidative degradation. This part is further discussed in the chapter on Environmental
Effect (Nass, 1977; Beadle, 1971; Chanda, 1987).
53
Extrusion
A plastic material is forced through an orifice of the required shape under pressure to achieve the
desired section. This is the fundamental principle of the extrusion. Extrusion is the crucial
operation and extruders are widely used machines in processing and reprocessing of plastics. As
per an estimate, 50 % of the main thermoplastics consumed are finally extruded. However,
extruders are also used for various other purposes of plastic processing, namely, as reactors, melt
pumps, compounders, devolatilisers etc. (Schenkel, 1966; Brydson, 1973). Extrusion for
reprocessing purpose fundamentally follows the same technology as for processing.
History
In a broad sense the extrusion of plastic materials is known for at least hundred and fifty
years. The first patent was granted in 1845 for an extruder for processing of thermoplastics. The
development of continuously operating extruders for thermoplastics began in the middle of
nineteenth century in the large cable factories of England and Germany. However, the real boost
for commercially available extruded plastics came with the world war II. Flexible PVC
insulating coating for electrical wires and cables represent the earliest commercial application
for extruded plastic during world war II (Schenkel, 1966). Technically, the extruder employed
for reprocessing is essentially same as the one utilised for processing.
Types of Extruders
A. Single Screw Extruders

By far the most common type of extruder used in plastic industry is single screw machine. The
principle features of single screw extruder are: screw, barrel, hopper as a feed pocket,
mechanism to revolve the screw, head and die assembly, heating and cooling mechanism of the
barrel and temperature control mechanism as shown in Figure 1.
The extruder machines are generally heated by electric resistance heaters although many other
forms of heating may be found, for example, steam, oil etc. Electrical resistance heaters are used
in India for processing and reprocessing of plastics. Ideally, the temperature regulation of the
extruder barrel is fully automatic. For this purpose the barrel is divided into a number of zones to
allow variation of temperature along the length. Similarly, cooling is done with air or water as
heat transfer media (Braun, 1971).
B. Twin Screw Extruders

Twin screw extruders find their main application in the extrusion of unplasticised PVC and for
more difficult compounding applications. For all practical purposes twin screw extruders are not
used for reprocessing in India.
C. Vented Extruders
54
Specially designed vented extruders have degassing zone to remove the volatile matter. The
vented extruders are considered as landmark achievement in extrusion technology, although they
are hardly used in India. The concept and design of vented extruders are further discussed in the
next section (Deutcher, 1980; Brydson, 1973).
55
The Extrusion Process: Theory
The barrel and screw section of the extruder has four principle functions: pumping, heating,
mixing and pressurising. The length of extruder can be divided in to three zones: a feed zone
starting at hopper, followed by a compression zone and then a melt or metering zone.
The granules or flakes are collected in the feed zone from feed hopper and transported up the
screw channel. The granules/flakes begin to heat up and compact, building up pressure as they
advance down the screw. For efficient pumping the granules/flakes must not be allowed to stay
in the screw channel. As the matter shifts from feed zone to melt zone there is an increase in the
screw diameter. This will cause compression of the matter forcing the air trapped in between
back towards the hopper. The melting should occur around the compression zone. In the melt
zone the polymer is brought to correct consistency and pressure required for extrusion. A high
melt pressure is required in the metering zone in order to mix the melt to give it constant
properties throughout and to obtain smooth extrudates. This pressure is generated by restrictions
to flow in the melt zone and die head. It will also increase with an increase in melt viscosity ( by
lowering the melt temperature) (Brydson, 1973; Balachandani, 1980).
Breaker Plate
At the end of melt zone there is a breaker plate. This is usually perforated disc of greater
thickness. This has several important functions. It helps to further increase back pressure, it turns
rotational flow of the melt into flow parallel to the screw axis, it holds back impurities and it
57
holds back unplasticised material. The ability of breaker plate to fulfill these functions are
enhanced by interposing wire mesh screens between breaker plate and screw.
Temperature Control
The Melt Flow Index is a rough measure of the molecular weight and melt viscosity of the
Polymer. It indicates how readily molten Polymer will flow in processing machinery. It is a
function of temperature, molecular weight of the Polymer, shear generated by the screw speed,
pressure and contaminants present in the polymer. In other words, the resistance to flow under
specified temperature and pressure conditions is called Melt Index. Theoretically developed Melt
Index do not take into account the actual conditions of processing but is a reasonably accurate
indicator to predict how Polymer will behave when processed.
Lower the Melt Index value of the Polymer higher the viscosity, hence processing low Melt
Index Polymer will require higher operating temperature and more mechanical power in the
processing equipment. Moreover, due to difference in such flow properties mixing of two
batches of widely different Melt Index Polymers would give very poor finishing surface or may
make processing difficult or even impossible. Melt Flow Index denotes wide range of
temperature at which the Polymer will be melt viscous under processing and reprocessing
conditions (Mark, 1989). The temperature for Polyolefin is denoted in Table 1. PVC free from
additives can start degrading at temperature as low as 500C but generally is processed at 175-
1800C compounded with various additives.
Large part of the melting occurs at the interface between melt film and solid bed. Heat is
conducted from the hot barrel surface through the film into the interface. Furthermore, the
relative velocity of barrel and screw shears the thin film thus generating considerable amount of
heat by viscous dissipation. It is necessary to control heat supply because if the material becomes
excessively hot it may decompose, degrade or become too fluid. If excessively cold it will be
insufficiently plasticised. Variations in temperature will also cause variations in flow rate. In
order to optimise the efficiency, temperature is varied along the barrel. Two to six heating zones
are normal with a steady temperature gradient increasing from the feed to die. Temperature
control in all these zones is very crucial and should be achieved by the automatic temperature
control mechanism and by cooling the parts of the barrel with air or water circulation
(Balachandani, 1980).
Degassing
Polymer melts may contain varying amount of air, moisture, solvent or monomer. These
contaminants may be removed by applying vacuum and allowing volatile to diffuse out for
quality output. Otherwise this causes extrudates to bubble and exhibit porosity (Deutcher, 1980).
Contaminants like air and moisture, in case of polyolefin, promote oxidization and eventually
degradation at the time of processing. This can be reduced by using a screw with decompressing
zone with a sudden change in the diameter of the screw. The flight in the decompression zone
58
will have no pressure on the melt. A vent hole is drilled at this point in the barrel to allow gases
to escape added with vacuum ( Brydson, 1973).
Extrusion Process: Practice
Extruders generally used for reprocessing in Bangalore are locally fabricated in the workshops or
in the industry itself. It is very common to fabricate extruders from second-hand or discarded
machinery and have bare minimum parts. It was a usual sight that heaters and electrical wiring
connected with barrel are exposed without any casing. The wiring, in many cases, was connected
without even insulation tapes. In such case, the proper design of the screw to suit the type of the
polymer being reprocessed and auotomatic temperature control can not be expected. The
extruders are single screw type with or without increasing root diameter from feed to metering
zones. The vented extruders are rarely used as the cost of such machines is manyfold higher than
the non-vented ones.
The temperature range for melting particular type of Polymer is fixed on the basis of practice.
There are two ways of temperature control: manual off and on of heaters or cooling with water
manually. The automatic temperature control systems known as Pyromatric temperature control
system which automatically disconnects when temperature exceeds the prescribed limit are
rarely used. The second system of temperature control, wherein heating can be stopped for set
timing, say 10 % or 20 % of the heating time, are also not commonly used as they are difficult to
maintain. Generally, manually switching on and off systems are used in addition to cooling the
barrel manually with water.
Flakes or chips are preheated in high speed mixer and fed into the hopper. The matter is then
pushed into the barrel with long spade or wooden stick to maintain continuous flow with
relatively high pressure. The process normally starts with hot barrel to achieve maximum benefit
of the heat generated due to shear and heat conducted through barrel. A high screw speed and
low temperature setting is the ideal condition when all the heat may come from viscous
dissipation. The heating of the barrel creates the thin film of the melt on the solid bed and once
this is formed the heaters can be disconnected. Acheivemtn of this equilibrium demands lot of
efforts and in most of the reprocessing cases is not achieved simply because the process is
interrupted number of times due to contaminants clogging the wire mesh. Hence, manual cooling
the barrel with water in addition to switching off the power supply in extreme condition is the
only means of temperature control. The machine operator keeps a jug of water handy and ready
and pours it on barrel now and then.
Aarriving at a right kind of processing temperature suited to particular kind of Polymer is also a
task of the skilled operator. Although type of the Polymer being reprocessed is known, the
characteristic features like number of times reprocessed before, level and types of contaminants,
molecular weight (with each reprocessing the molecular weight of the Polymer is likely to
decrease by 30 % to 40 %) which influence the actual processing are largely unknown. Hence,
arriving at right kind of reprocessing conditions is an art more than the science. The rate of out
59
flow and homogeneity of the plastic coming out are indicators to decide the correct temperature
which may differ widely for the same type of polymer.
Breaker Plate
A wire mesh is attached to the breaker plate to remove contaminants. There is invariably a fair
amount of impurities in the shredded material loaded into extruder. The mesh placed before
breaker plate is meant to trap these impurities. In normal operation the mesh gets clogged very
fast, and needs to be replaced almost every minute. This causes frequent, though very short,
stoppages of extrusion, and again results in variations in temperature and a reduction in
production. As a result the actual production is about 50% of the total capacity. Thus most units,
which have a production capacity of 400 Kgs per day, actually produce only 200-250 Kgs per
day. The increased energy losses in turn lead to uncomfortable working conditions. Wire mesh is
changed manually and then burnt to remove impurities. The breaker plate is also burnt at least
once a day.
Power Shutdowns
Bangalore faces a severe shortage of power supply. As a consequence there is a power shutdown
of 2 hours each every morning and afternoon. In addition, industries are barred from using
power from 6 P.M. to 10 P.M. This has a considerable impact on the production and the
extrusion process. Extrusion is usually a continuous process, and in ideal conditions the machine
runs non-stop for a run of one week or more.
Frequent stoppages for replacing the mesh do not cause a large drop in the temperature of the
barrel and the die. Production is thus interrupted only when the stoppage occurs. However, in
case of power shutdowns, the barrel and the die cool down considerably, and take about an hour
to heat up. This causes, first, a considerable drop in the production and second, material in the
barrel of extruder solidifies and needs to be reheated, leading to degradation and loss. This
particularly causes problems in case of PVC as long residence time at elevated temperature in
the extruder leads to degradation. When the degraded material is removed from extruder after
power is restored, highly odorous volatile matter is emanated which may contain toxic vinyl
chloride, hydrogen chloride in addition to carbon monoxide and other products of incomplete
combustion.
Pelletising or Lump Making

Actual extrusion is through a cylindrical die, with usually 6mm diameter holes through which
the plastic is squeezed out. As the semi-solid material emerges, it is passed through a trough of
water to harden, and then passed into a chopper which chops it into small pellets. During this
pulling through water the cord thins further, to reduce the diameter to about 2mm at the chopper.
In case of PP, first lumps are made which are again ground and extruded to make granules.
Finally the granules are again extruded to be molded into appropriate product shape.
60
Plastic thus recycled is passed through the extruder 2-3 times before reshaped into final
product.
4.3 Environmental Impact of Recycling
Physical Environment:
Grinding scrap is a noisy operation. Some times noise level may go up to 95 db. Small scale
enterprises are often not designed for the reprocessing purpose. Adequately designed
ventilation to quickly remove the gaseous products and heat is generally not present. Lack
of space for easy movement makes it further congested.
Cleaning:
Caustic Soda and other cheap detergents are used for cleaning. The flakes or chips are soaked
in detergent for anywhere between 1 to 3 days. Before rinsing they are washed with hands.
This operation would require a worker to keep her/his hands in soap solution for 6 to 8 hours
a day.
Grinding:
Major products of grinding are RPM2 (respirable particulate matter) and SPM (suspended
particulate matter). Air quality monitoring (the results are attached as annexure) in one of the
plastic reprocessing unit in Bangalore revealed RPM = 241 mcg/cu.m and SPM = 1491 mcg/cu.
m.
Coloring
With the addition of color in the form of masterbatch the harmful effects of powder pigments
are curtailed. Nevertheless, the leaching out effect of pigments in the final product is a
complex phenomenon and it has to largely do with the conditions of reprocessing and type of
the pigments used.
Extrusion
Impact of Heating
It involves the mechanical scission of polymer chain in its viscous environment. This
produces highly reactive microradicals that in the presence of small amount of oxygen
dissolved in the polymer can form peroxyl radicals and hydroperoxides. As a result
hydrogen is abstracted from each C-H bond leading to rapid reduction in molecular
weight. This has two manifestations, one, the polymer becomes more susceptible to
2
Smoke arising of heating and grinding processes comprise soot, fine dust and ash in a mixture of gases. Size of
particles range from 0.5 to 100 micron particle size. Particles above 10 micron size known as suspended particulate
matter (SPM) do not enter human breath, between 5 to 10 micron size are retainedin upper respiratory tract and
particles less than 5 microns, known as respirable paniculate matter (RPM) reach lungs. 75 mcg/cu.m. is the
proposed higher limit for RPM in India (Agrawal, 1996).
61
degradation and second, its tensile strength is considerably reduced making subsequent
product life shortened.
Overheating can lead to degradation and gaseous matter generated as a result can even
cause extruder blow up. This was reported particularly in case of PP. Thin carry bags
made of PP are carefully separated from PE and extruded into lumps. Here the presence
of air, moisture or even other polymer can lead to degradation and clogging of the screw
channel. When there is no venting point point for volatile matter, there can be explosion
given high temperature (Papaspyrides, 1996; Chanda, 1987).
Impact of Pigments
The pigments used are mostly based on inexpensive metal oxides that acts as
prooxidants at high temperature at the time of extrusion. Some of the pigments, for
instance chromium based green pigment, can catalyse the thermooxidative degradation
of HDPE when present even in trace quantities. Virgin PE is usually stabilised to prevent
in-service degradation but with processing this antioxidants are consumed and these
pigments may exert prodegradant effect. Since reprocessed Polyolefins are rarely
stabilised the pigments further promote degradation when the product is subjected to
heat, light and pressure in service (Scheirs, 1996).
Impact of Contaminants
The various contaminants present may be due to labelling content, packaging content,
the products with which plastic come in contact with during the service life,
contamination with other polymers and contamination due to environment and
additives. During the in service use plastic may be photodegraded and can form low
molecular weight oxygenated products like aldehydes, acids, ketones, waxes etc. These
low molecular weight impurities can lead to segregation at the time of reprocessing and
further sensitise the reprocessed polymer to photodegradation (Scheirs, 1996).
Volatilisation
Polymer passes through the mechanochemical changes each time it is heated to be

extruded. In the most common form the polymer passes through the molecular chain
scission and eventual cross linking. Depending upon the material, the temperature and
the presence or absence of oxygen and other harmful gases may also evolve. These
include HC, HCN, NO2 , SO2, carbon monoxide and chlorinated gases. The impact of
additives and pigments on the composition of products of heating is not much known as
it varies widely (Deutcher, 1980).
Degradation
The stability of the polymer against thermal degradation and chemical nature of thermal
decomposition vary widely from one material to another. The stability of the polymer
62
depends upon heat history it has been subjected to, the contaminants present and
molecular weight (Williamson, 1992). It is absolutely impossible to know the heat
history of the polymer being recycled given the level of technology used for both
processing and reprocessing. Each time it is heated to be molten it becomes more prone
to degradation unless the previous heat history ( rate and intensity of heating and
cooling) is repeated. First or second time recycled plastic contains fair amount of
contaminants and that makes it more susceptible to degradation. Lastly, each time the
polymer is subjected to heating to be molten its average molecular weight decreases
which also has profound effect on its stability against degradation. Hence, even under
the normal conditions of reprocessing part of the plastic is subjected to degradation
unless heat stabilisers are added (which are rarely added in case of polyolefins).
Besides, there are low flow regions in the machine known as "hang up" zones where,
material is likely to be stuck up and degrade.
The real threat is posed by frequent power fluctuation in Bangalore. If there is power
failure when the machine is in running condition there is no way that the matter stuck
up inside can be removed. The machine has to be reheated to process the matter after
power is restored. In such a situation material degrades being subjected to repeated
heating particularly in case of PVC.
Lastly, the contaminants filtered by assembly of wire mesh and breaker plate are
removed by burning. These contaminants also contain gels or black specks and
unplasticised particles. When burnt these elements are subjected to decomposition.
Products of Degradation
This is highly unpredictable part of the polymer science. Various additives and other
contaminants present may produce complex mixture of toxic and non toxic matter in specific
processing conditions which are largely unknown. On the basis of the experiments conducted in
controlled conditions the following products are at least expected of degradation of the polymers.
Form the point of view of identification there are three types of products of thermal degradation:
substances of the lowest molecular dimension known as monomers, volatile substances produced
at degradation temperature and involatile residue. The specific products of thermal degradation
of some important polymers are as follow. In addition to volatile matter like carbon monoxide,
carbon dioxide, NOX, particulate matter and suit.
Polymer Degradation Products

Polyethylene, Polypropylene Chain fragments of various size, small amount of
volatile saturated and unsaturated hydrocarbons
Poly(vinyl Chloride) Quantitative yield of hydrogen chloride, small amount
of benzene, colored tars, carbonaceous residue and
saturated and unsaturated aromatic hydrocarbons
Source: Ohtani, 1996; Williamson, 1992.
63
The Product Impact
A senior official in IPCL (Indian Petro-chemical Ltd.) reported that products made of recycled
plastic can have leaching out effect wherein the outcome of in service degradation may migrate
to the matter coming in contact with it. This may have serious manifestation, for example,
Kodams ( water pots) made of recycled HDPE has huge market in urban areas facing severe
water shortage. They are not only used to fetch water but are also utilised to store it for drinking
and cooking purposes.
The porosity of the recycled material due to partial degradation during the process of extrusion
helps in both migration of substance into the polymer coming in contact with it (which
eventually behaves as contaminant for the next cycle of reprocessing adding in the degradation)
and extraction of products of in service degradation into the immediate matter or environment
(Briston, 1974).
64
PART II : FINANCIAL ANALYSIS
4.4 Case studies
4.4.1 Universal Industrial Engineers

527 A Thippasandra
Bangalore 560 075
Phone No. 52 89 359
Email : balchand@giasbga.vsnl.net.in
Contact Person : Mr. Kamal Balchandani, Proprietor
History:
The unit was started in 1978 and Mr. Balchandani, a qaulified engineer, is the proprietor. Earlier
he had a machinery manufacturing business. The machinery for the plastic reprocessing business
he eventually set up was fabricated by himself.
Motivation:
While he was in the business of manufacturing machinery for small scale industries, he realised
that there existed a good scope for plastic recycling. After he made an assessment that what it
takes to get into this business he found it may be profitable and was therefore motivated to get
into plastics recycling. He also has a high awareness level of environmental concerns and
thought this was one way to contribute to waste management.
Recycling Process:
This small scale plastic recycling unit uses mainly road waste as raw material. However,
machine waste from plastic processing industries and even virgin material is some times
processed. Sorting and segregation of the road waste is done in-house by women workers,
followed by size reduction, extrusion and pelletization. Sorting is done to segregate the waste by
type of the plastic. Big plastic pieces are broken down manually by beating with a mallet or
hammer and in the process metal parts or other pieces removed. Wastage from sorting is minimal
and accounts for about 1-2% of the total. In case of PP first lumps are extruded which are then
ground again to be extruded and pelletised. Following is the flow chart:
SCRAP => SORT => GRIND => WASH IF NECESSARY =>

HIGH SPEED MIXER => FEED EXTRUDER => PELLETIZING
In addition, the men and machinery are given on hire for external job work. For the job work raw
material belongs to the customer. The customer sends scrap he wants to be pelletized and the
unit will convert it to pellets for them.
65
Source of Raw Material:
From wholesale plastic dealers and plastic factories who send their waste material for recycling.
Types and quantities of plastic material recycled:
1. Poly Propylene (PP) Black* 5 ton

2. LDPE Black 2 ton
3. Mixed external jobwork 5 tons
* Black PP is the most commonly reprocessed plastic in this unit.
Location and Work Area:

The unit is located in a tile roofed shed of 2,500 square feet in a residential area. The work area
is fairly clean. The ventilation needs to be improved in grinding area and in the area where
process of extrusion takes place. There are no exhaust fans provided and strong smell of burnt
plastic was experienced when visited. The unit has a borewell in-house. The water is used for
cooling plastic wires extruded and some times for washing the plastic pieces before extrusion.
Additives Used:
1. Carbon black
2. Coupling agents
3. Pigments
All additives are used in 1 - 5% by volume of the waste reprocessed.
Type of machinery :
1 Grinder 10hp 1 no
2 High Speed Mixer 10hp 1 no
3 Extruder 75mm 1 no
4 Pelletizer 10hp 1 no
All machinery was fabricated in-house since the proprietor is an engineer and had previously a
machinery fabrication business.
Capacity:
Installed Capacity 15 tons per month
Actual capacity 12 tons per month
66
Time taken to process one ton of plastic is from 15 to 40 hours depending on the contaminants
and the power situation.
Cost of Raw Material
PP Rs. 9000/ MT
LDPE Rs. 8000/MT
Sales price
PP Rs. 20000/MT
LDPE Rs. 17000/MT
Labor costs
Male Rs. 100 per day

Female Rs. 50 per day
Management:
The unit is managed by the proprietor for all practical business purpose. The machine operator is
trained to manage the production and 5 male and two female workers perform sorting and other
work.
67
Financial Analysis
1. Running Cost
Raw Material
Material Type Volume Dealt with Purchase Price Total Purchase Price
PP 5,000 9.00 45,000
LDPE 2,000 8.00 16,000
Total 61,000
Laborers or Staff
Type No. Salary Paid Rs. Per No of Days in Salary per Month
Day Month Rs.
Men 5 100.00 25 12,500
Women 2 50.00 25 2,500
Total 15,000
Inputs
Type Cost Rs. per Month
Power and Utilities 9,000
Others 20,000
Total 29,000
2. Capital cost
Assets Capital Cost Rs. Advance Paid Rs.

Extruder 150,000
Pelletiser 40,000
High Speed Mixer 60,000
Grinder 25,000
Blade Sharp 15,000
Water Pump 5,000
Total 295,000 335,000
68
3. Sales
Type Amount Kgs per Sales Price Rs. per Total in Rs.
Month Kg
PP 5,000 20.00 100,000
LDPE 2,000 17.00 34,000
Jobwork 5,000 8.00 40,000
Total 12,000 174,000
Sales Rs. 174,000 per Month

Marginal cost Rs. 105,000 per Month
Total Rs. 69,000 per Month

10 % of Rs. 2,95,000 / 12 Months = Rs. 2,458 per Month
Rs. 3,35,000 = Rs. 40,200/12 = Rs. 3,350 per Month
Net profit.
Gross profit Rs. 69,000 per Month
Less Interest and depreciation Rs. 5,808 per Month
1. Product ratio = 73,000/174,000 x 100% = 41.95%

Sales price 100,000 + 34,000 = 134,000
Cost price 45,000 + 16,000 = 61,000
Product margin = 73,000
2. Gross profit ratio = 69,000/174,000 x 100% = 39.65%
3. Return on investment = 63,192/335,000 x 100% = 18.86%
69
Interest ratio = 3,350/66,542 x 100% = 5.03%
a) Quality ratio =
PP 41,000/50,000 x 100 = 82%
LDPE 42,000/50,000 x 100 = 84%
b) Fixed costs ratio = 335,000/174,000 x 100% = 192.52%
c) Net Profit ratio = 63,192/174,000 x 100 = 36.31%
4.4.2 Vinayraj Plastics

59, 5th Main, Sreerampura
Bangalore 21
PH: 3350756
Contact Person : Mr Shukla / Mr. Pandey
History:
The unit, a partnership firm, was started in 1974 by Mr Shukla and Mr. Pandey, who have a
background of family business.
Motivation:
Motivation for this business was the increased use of PP woven sacks in the 1970s.
Knowing that large qaunities of waste would be generated from the production of woven sacks,
the entrepreneur found an opportunity to recycle this good quality machine waste and therefore
were motivated to set up this unit.
Recycling Process:
This small scale plastic recycling unit uses waste generated from factories and
manufacturers of PP woven sacks which are used extensively in the cement and fertilizer
industries. The process involves, size reduction (in some instances when the waste is in lumps),
mixed with color master batches, extrusion and pelletization. There is no sorting required since
the waste material is of one type. Following is the flow chart:
SCRAP => (GRIND) => HIGH SPEED MIXER (ADD COLOR) =>
FEED EXTRUDER => PELLETIZING => BALING STRAPS
70
Source of raw material:
From manufacturers of PP woven sacks.
Types and quantities of plastic material recycled:
1. Poly Propylene (PP) white 8 tons per Month
Sanitary and water:
The unit uses very little amount of water since the raw material is clean machine waste. The
water is required only for cooling of extruded plastic.
Location and work area:
The unit is located in a commercial area of the city near the city railway station. Although
the surrounding areas are busy commercial areas, the unit is located in a cross road which is
relatively quiet. The shed common to many small industries in the country, is 3000 sqft and is
moderately ventilated. Being a high roof and large area it does not seem very congested. The
volume of light PP waste occupies much of the space during processing. The work area is fairly
clean.
Additives used :
1. Pigments (Master Batch) 10 kgs/month
Type of machinery:
1. Extruder 75mm 1 no
2. Pelletizer 75mm 1 no
3. Bailing strap plant 1 no
4. Water pump 1 no
All machinery was bought in Bombay.
71
Capacity:

Time required to convert 1 tons of waste 3 days
Working hours 8 hours/day
Working days 25 days/month
Cost of raw material

PP Rs. 35,000/ MT
Sales price
PP Rs. 40,000/MT
Baling straps Rs. 60,000/MT
Management:
The unit is managed by the partners in rotation
Flow chart:
Manager (Partners)
Supervisor
Machine operator
Labor 6 male Labor 4 female
72
Financial Analysis
1. Running Cost
Raw Material
PP White 8,000 35.00 280,000
Total 280,000
Laborers or Staff
Type No. Salary Paid Rs. No of Days in Salary per Month
Per Day Month Rs.
Men 6 25
Women 4 25
Total 17,700
Inputs
Others 25,000
Total 44,000
2. Capital Cost
Assets Capital Cost Rs. Investment Cost Rs.
Extruder 150,000
Pelletiser 35,000
Baling Strap Machinery 190,000
Water Pump 10,000
Total 385,000 885,000
73
3. Sales
Type Amount Kgs Sales Price Rs. Total in Rs.

per Month per Kg
PP Granules 4,000 40.00 160,000
Baling Straps 4,000 60.00 240,000
Total 8,000 400,000
Sales Rs. 400,000 per Month

Less Marginal costs Rs. 341,700 per Month

385,000 = 38,500/12 = Rs. 3,209 per Month

885,000 = 106,200/12 = Rs. 8,850 per Month
Total = Rs.12,059 per Month
Net profit.
Gross profit Rs. 58,300
Less Interest and depreciation Rs. 12,059
Total Rs. 46,241
1. Product ratio = 120,000/400,000 x 100% = 30%

Sales price 160,000 + 240,000 = 400,000
Cost price = 280,000
Product margin = 120,000
74
Interest ratio = 8,850/55,091 x 100% = 16.06%
a) Quality ratio = 20,000/55,000 x 100 = 36.36%
b) Fixed costs ratio = 885,000/ 400,000 x 100 = 221.25%
c) Net Profit ratio = 46,241 / 400,000 x 100 = 11.56%
4.4.3 Munnot Plastics Industries

Nayandahalli
Mysore Road
Bangalore - 560 039
Contact person: Mr.Kewal
Designation : Proprietor
History:
The unit is a proprietorship firm and was started by the proprietor in the year 1991.
Motivation:
The motivation for Mr. Kewal came from his desire to do a small business which does not call
for much sophistication in processes and one which was simple enough for him to do.
Recycling Process:
This unit uses HDPE scrap such as buckets and other household articles. The scrap is sorted into
different colors and then broken down into smaller pieces, ground, washed, dried, extruded and
pelletised.
SCRAP COLOR SORTING SIZE REDUCTION FEED EXTRUDER

PELLETIZING
75
Wholesale dealers.
Types and Quantities of Plastic Material Recycled:
1. HDPE waste 15 tons per month
Sanitary and Water:

The unit uses some water which is drawn from the bore well in the factory and is used to
wash the soiled plastic. The spent water is let out into an open drain in the premises.

The unit is located in the south of the city in an area which is well known for its plastic
recycling units in Bangalore. This area, Nayandahalli is estimated to have nearly a hundred units
which are in some way or the other involved with plastic recycling. There are many small
industrial sheds of about 2000 to 3000 sqft each with AC sheet roofing. The sheds are
haphazardly built with no tarred roads.
This unit occupies one such shed of 2000 sqft with poor ventilation.
The inside of the factory was poorly maintained with swarm of the mosquitoes.
Additives used :
1. Pigments (Master Batch) 10 kgs/month
2. Titanium Dioxide 10 kgs/month
Type of Machinery:
2. Pelletizer 10hp 1 no
3. Water pump 1 hp 1 no
4. Washing machine 5 hp 1 no
All machinery was fabricated locally. The machinery were visibly fabricated from second hand
discarded parts of the old machinery. The wires connected with the extruder for heating were all
open without casing. The grinder also looked very old and was rather throwing the cut pieces
out. The unit had high level of noise with poor ventilation and unhygienic working conditions.
76
Capacity:
Time required to convert 1 ton of waste 2 day
Working hours 8 hours/day
Working days 25 days/month

HDPE Rs. 20,000/ MT
Sales price
HDPE Rs. 32,000/MT
Management:
The unit is managed by the Proprietor
Flow chart
Manager (Proprietor)
Machine operator
Financial Analysis
1. Running Cost
Raw Material
HDPE scrap 15,000 20.00 300,000
Total 300,000
Laborers or Staff
77
Per Day Month Rs.
Men 4 80.00 25 8,000
Women 5 50.00 25 6,250
Machine 1 2,500
Operator
Total 16,750
Inputs
Others 15,000
Total 24,000
2. Capital Cost
Assets Capital Cost Rs. Advance Rs.
Extruder 80,000
Pelletiser 30,000
Grinder 25,000
Water Pump 10,000
Washer and other 20,000
Total 165,000 205,000
3. Sales
Type Amount Kgs Sales Price Rs. per Total in Rs.
per Month Kg
HDPE Granules 15,000 32.00 480,000
Total 480,000
78
Sales Rs. 4,80,000 per Month

Less Marginal costs Rs. 3,40,750 per Month
Total Rs. 1,39,250 per Month

165,000 = 16,500/12 = Rs. 1,375 per Month
205,000 = 24,600/12 = Rs. 2,050 per Month
Total = Rs.3,425 per Month
Net profit.
Gross profit Rs. 1,39,250 per Month

Total Rs. 1,35,825 per Month
1. Product Ratio = 1,80,000/4,80,000 x 100% = 37.5 %

Sales Price = Rs. 4,80,000 per Month
Cost Price = Rs. 3,00,000 per Month
Product Margin = Rs. 1,80,000 per Month
2. Gross Profit Ratio = 1,39,250/4,80,000 x 100% = 29 %
3. Return on Investment = 1,35,825/2,05,000 x 100 % = 66.25 %
4. Financial Capacity Analysis

Interest Ratio = 2,050/1,37,875 x 100 % = 1.5 %
5. Vulnerability Analysis
a) Quality Ratio = 30,000/50,000 x 100 = 60 %

b) Fixed Costs Ratio = 2,05,000/4,80,000 x 100 = 42.70 %
c) Net Profit Ratio = 1,35,825/4,80,000 x 100 = 28.29 %
79
4.4.4 Neha Pladtics
9, Naresha Block
Venkateshpura
PH: 5467019
Contact Person : Mr Damodaran, Proprietor
History:
The unit was started in 1978 by Mr Damodaran and is a proprietorship firm. He got into business
when he came to Bangalore from Rajasthan and at that time milk sachets in plastic pouches were
getting popular.
Motivation:
Considering the increasing daily consumption of milk, he forecasted an opportunity for recycling
the waste plastic and was therefore motivated to set up a unit to recycle the waste milk sachets.
Recycling Process:
This unit recycles milk pouches. The waste plastic pouches are purchased from wholesalers. The
process involves cleaning the waste in a circular drum beater which removes the grit and mud,
this is then fed to a size reduction machine which chops it into small flakes of 5-8mm. It is put
into a large motor driven drum washer to remove the dried milk and other contaminants. Manual
rinsing is then done twice in large basins. It is then spread out onto a large open space to dry
under the Sun. When sufficiently dry, it is put in to a high speed mixer and then fed into an
extruder and a pelletizer.
Being plastic of a single type, there is no sorting done except to check for contaminants by way
of other plastics which sometimes creep in. This is easily sorted.
SCRAP -> REMOVE DIRT (MECHANICAL) -> GRIND (SIZE REDUCTION) ->
WASH (MECHANICAL) RINSE (MANUAL) HEATING (HSM)
EXTRUSION PELLETIZING

From wholesale plastic dealers

HDPE (MILK COVERS) 600 kg/day
80
Sanitary and Water
A fairly large quantity of water is used in this unit since the milk sachets have to be thoroughly
washed. The unit has a borewell for its water supply and is drained out in an open drain out of
the unit.

The unit is located in the east side of town, on tannery road, which is a congested area. There are
many small industries in this locality. The area comprises of two rooms of about 500 sqft each
with a 1500 sqft open area in between which is used to dry the washed plastic flakes. There is
not much ventilation in the rooms though the open area in between helps in some ventilation.
The washing is also done in the open area. Cleaning and grinding is done in the front room and
the pelletisation in the other.
Additives used:
1. Pigments (master batch)
2. Whitener (Titanium Dioxide & Tinopal)
1-5% by volume of plastic reprocessed
Type of Machinery :
1. Rotary drum beater/ cleaner 5hp 1 no
2. Grinder 10hp 1 no
3. Centrifugal washer 5hp 1 no
4. High Speed Mixer 10 hp 1 no
6. Pelletizer 10 hp 1 no
Machinery is fabricated locally and apparently are made of lower quality machinery parts.
Capacity:
Installed Capacity 0.6 tons per day
Actual capacity 0.5 tons per day
Time taken to produce 1 ton of pellets 2 days
Working hours 8
Working days per month 24
Cost of raw material:

Milk Covers (HDPE) Rs. 15,000/ MT
81
Sales price
Pellets Rs. 34,000/MT
Price of virgin HDPE material is Rs. 55/kg
Management:
The unit is managed by the proprietor.
Flow chart
Manager (Proprietor)
Machine operator
Asst. Operator
Financial Analysis
1. Running Cost
Raw Material
HDPE Milk Covers 13,000 15.00 195,000
Total 195,000
Laborers or Staff
Per Day Month Rs.
Men 5 80.00 26 10,400
Women 5 40.00 26 5,200
Machine Operator 1 2,500
Asst. Operator 1 1,500
Manager 1 3,000
Total 20,100
Inputs and Rent

82
Rent 8,000
Others 10,000
Total 31,000
2. Capital cost

Extruder 130,000
Pelletiser 30,000
Grinder 25,000
Drum Cleaner 15,000
Water Pump 3,000
Washer 45,000
Total 288,000 368,000
3. Sales
per Month per Kg
HDPE Granules 13,000 34.00 442,000
Total 442,000
83
Sales Rs. 4,42,000
Marginal costs Rs. 2,46,100
Total Rs. 1,95,900

288,000 = 28,800/12 = 2,400 Rs. per Month
368,000 = 44,160/12 = 3,680 Rs. per Month
Net profit.
Gross profit Rs. 1,95,900
Less Interest and depreciation Rs. 6,080
Total Rs. 1,89,820
1. Product ratio = 2,47,000/4,42,000 x 100% = 55.88%

Sales price Rs. 442,000
Cost price Rs. 195,000
Product margin Rs. 247,000

Interest ratio = 3,680/193,500 x 100% = 1.90%
a) Quality ratio = 40,000/55,000 x 100 = 72.72%
c) Net Profit ratio = 189,820 /442,000 x 100= 42.94%
84
4.4.5 Contact Person: Mr. Ismail Mohamad
Nayandahalli, Bangalore
This was a small unit without any official name. The business is being run without any license.
There are a few such units in Nayandahalli. What is required for such unit is a power connection,
an extruder and minimum 15 ft. x 20 ft. of working space. The following details belong to one
such tiny unit.
History:
The proprietor is a Muslim person and has background of scrape wholesaling. Previously he was
working in pertnership with a plastic recycling unit using HDPE milk covers. He started this unit
in 1994.

The unit is located in Nayandahalli. It has a room measuring 90 ft x 32 ft and the sorting is done
outside the unit under a thatch roof.
Process:
White PP carry bags are purchased from a wholesaler and further sorted to remove any possible
contamination with HDPE, LDPE, LLDPE or HM bags. The skilled laborers mainly use their
judgement for sorting. The common method employed for sorting is based on the sound of the
bag if rubbed between two hands. PP gives cracking sound. If uncertain, the edge of the plastic is
burnt, a sweet, scent smell is emanated if it is PP.
The sorted bags are directly fed into extruder without any washing or chopping. The
extruded lumps are sold. Apparently the lumps are further extruded to make granules. The
granules are used for blow molded suitcase making.
Sources of Raw Material:

Wholesalers of Scrap.
Type and Quantity of the Plastic Material Recycled:

PP white carry bags. 150 kgs/day
Sanitary and Water and Work Condition:

This unit operates in a small congested room. Very little ventilation makes it suffocated. As PP is
recycled by controlled degradation method there was strong smell of burnt plastic when the unit
was visited. We were also told that if the extruder is overheated and if the plastic contains some
85
amount of moisture it is likely that the extruder may explod. Such incidents seems to have
happened in the past.
The work area was occupied with heaps of waste carry bags and house keeping was not very
clean.
Type of Machinery:
Extruder 1 No.
It was locally fabricated, could be from second hand machinery.
Capacity
Actual Capacity 150 kgs/day
Working Days in a Month 26
Working Hours in a Day 8 hours
Financial Analysis
1. Running Cost
Raw Material
Kg/Day Rs./Kg Rs./Month
PP white carry bags 150 15.00 46,800
Total 46,800
Laborers or Staff
Per Day Month Rs.
Men 3 80.00 26 6,420
Women 6 40.00 26 6,420
Total 12,480
86
Inputs and Rent
Others 2,000
Total 6,000
Loan and Borrowing

Source Amount Rs. Interest Rs./month
Private 1,50,000 3,000
Total 3,000
2. Capital cost
Extruder and other Equipments 80,000
Total 80,000 1,55,000
3. Sales
per Month per Kg
PP Lumps 3,900 22.00 858,000
Total 858,000
87

80,000 = 8,000/12 = 666 Rs. per Month
1,55,000 = 15,500/12 = 1,292 Rs. per Month
Total = 1,958 Rs. per Month
Net profit.
Less Interest and depreciation 1,958 Rs. per Month
1. Product ratio = 39000/858,000 x 100% = 45.45%
Sales price 858,000
Cost price 468,000
Product margin 39,000
3. Return on investment = 12628/155,000 x 100% = 8.14%

Interest ratio = 4,292/19854 x 100% = 21.64%
a) Quality ratio = 40,000/55,000 x 100 = 77.00%
( price of the virgin PP = 55,000 Rs./ton)
c) Net Profit ratio = 185,62 /858,000 x 100= 21.63%
88
4.4.6 Hindustan Plastics
285, 8th Cross, 2nd Main
Prakashnagar
Bangalore - 560 021
Contact Person : Mr Rajesh, Proprietor
History:
The unit was started in 1981 by the proprietor Mr Rajesh.
Motivation:
The motivation for this business came from the availability of waste raffia for which he had
access to from known sources. In working out the feasibility he estimated the business to be
profitable and offered him the line he was looking for.
Recycling Process:
This unit processes only Raffia which is waste PP woven sack material. This is largely
machine waste (post industrial) from PP woven sack manufacturing units. The first round of the
process involves extrusion for lumps making. The lumps are then ground for size reduction and
again extruded in pellets. Sorting is hardly ever required since the raw material is uniform
quality, post industrial waste.
SCRAP EXTRUDE (LUMPS) GRIND HSM (HEAT)

FEED EXTRUDER (CORDS) PELLETIZING

From PP woven sack manufacturers.

1. Poly Propylene (PP) raffia waste 15 tons
Sanitary and Water:

The unit has an open well in the premises. The water requirement is not very high and is
used for circulation in the water tank to cool extruded plastic cords. Since most of the plastic
used is post industrial and clean, the waste is not washed.
89
The unit is located in an industrial shed of 2500 sqft in a residential area of the city. Over all
ventilation is poor and there are no provisions for cross ventilation. The work area is fairly clean.
Type of machinery :
1. Grinder 25hp 1 no
2. High Speed Mixer 10hp 1 no
4. Pelletizer 10hp 1 no
5. Water pump 1 no
All machinery was fabricated locally.
Capacity:
Time taken to process one ton of plastic is 2 days.

PP Rs 32,000/ MT
Sales price
PP Rs 42,000/MT
Management:
The unit is managed by the proprietor.
90
Financial Analysis
1. Running Cost
Raw Material
PP Woven Sack 15,000 32.00 480,000
Manufacturing waste
Total 480,000
Laborers or Staff
Per Day Month Rs.
Men 2 100.00 25 5,000
Women 3 50.00 25 3,750
Machine Operator 1 3,500
Secretary 1 2,500
Total 14,750
Inputs and Rent

Others 25,000
Total 37,000
91
2. Capital Cost
Extruder 150,000
Pelletiser 25,000
Grinder 70,000
Water Pump 5,000
Total 320,000 380,000
3. Sales

per Month per Kg
PP Granules 15,000 42.00 630,000
Total 630,000

Marginal costs 531,750 Rs. per Month

320,000 = 32,000/12 = 2,666 Rs. per Month
380,000 = 45,600/12 = 3,800 Rs. per Month
Net profit.
92
1. Product ratio = 10,000/42,000 x 100% = 23.80%

Sales price Rs. 42,000
Cost price Rs. 32,000
Product margin Rs. 10,000

Interest ratio = 3,800/95,584 x 100% = 3.97%
a) Quality ratio =
PP 23,000/55,000 x 100 = 41.81%

6,466/630,000 x 100 = 1.02
c) Net Profit ratio = 91,784/630,000 x 100 = 14.56%
4.4.7 Allied Containers

131, Lalbagh Road 4 th Cross
Near Dilip Road Lines
K.S. Gardens
Bangalore -560 027
Contact Person: Mr. Ramesh Bhatia, Proprietor
History:
Mr. Bhatia was working as an employee before 1979. In 1979 he started a Kodam ( water pots)
making unit which he closed in 1984 due to adverse credit and pay back conditions. From 1984,
he is running his own unit of recycling.
Motivation:
Mr. Bhatia is a first generation businessman and though he was working as an employee earlier,
he had an urge to have business of his own. Plastic recycling at that time, in 1976 was an
emerging area which seemed attractive with its margins and relatively law level of investments.
93
Recycling Process:
This unit processes only machine waste. Much of the production is through job work, wherein
machines, labor and other facilities are given on hire to an outside person who brings the raw
material. A flat amount per tone of the plastic is charged. The process involves size reduction,
high speed mixing followed by extrusion and pelletisation.

From plastic processing units.
Types and Quantities of Plastic Waste Recycled:

1. Job work - PP Woven Sack Machine Waste 10 tons per month
2. Own - PP Woven Sack Machine Waste 4 tons per month
Location and Working Area:

The unit is located in an industrial shed of 1500 sq ft area in a commercial area of the city.
Ventilation is poor.
Type of Machinery:
1. Grinder 15hp 200 kgs per hour 1 No
2. High Speed Mixer 10hp 25 kg 1 No
3. Extruder 75mm/25 hp/ 30 kg/hour 1 No
4. Pelletiser 1 hp 1 No
All machinery was purchased locally.
Capacity:
Actual Capacity 14 tons per month
Time taken to process one ton of plastic is 2 days.
Cost of job work Rs. 8 per kg

Price of raw material Rs. 15 per kg
Price of finished product Rs. 35 per kg
94
Management:
The unit is managed by the proprietor, though all day-to-day supervision and operation of
the factory is done by the machine operator/supervisor.
Financial Analysis
1. Running Cost
Raw Material
PP Woven Sack 4000 15.00 60,000
Manufacturing
waste
Total 60,000
Laborers or Staff:
Per Day Month Rs.
Men 5 100.00 25 12500
Women 2 50.00 25 2500
Over Time at 50 % 7500
Machine Operator 1 3000
Secretary 1 1500
Total 27000
Inputs and Rent

Others 25,000
Total 40,000
95
2. Capital Cost
Extruder 120,000
Pelletiser 30,000
Grinder 45,000
Water Pump 3,000
Total 223,000 268,000
3. Sales
per Month per Kg
PP Granules 4000 35.00 140,000
Job work 10000 8.00 80,000
Total 220,000
Sales Rs. 2,20,000 per Month

Less Marginal costs Rs. 1,27,000 per Month

223,000 = 22,300/12 = Rs. 1,858 per Month
268,000 = 32,160/12 = Rs. 2,680 per Month
Net profit.
Gross profit Rs. 93,000 per Month
96
1. Product ratio = 80000/140,000 x 100% = 57.14%
Sales price Rs. 1,40,000 per Month
Cost price Rs. 60,000 per Month
Product margin Rs. 80,000 per Month
3. Return on investment = 88462/268,000 x 100% = 33%

Interest ratio = 2,680/91142 x 100% = 2.94 %
a) Quality ratio =
PP 20,000/55,000 x 100 = 40.00%
( price of the virgin PP = 55,000 Rs./ton)
c) Net Profit ratio = 88462/220,000 x 100= 40.21%
4.4.8 Apex Polymer Extrusions

7 th Main, Mico Layout
Bangalore: 560 076
Contact Person: Kamal Thakkar
Phone: 66 85 982, 6685983
History
The unit was started in 1984. The proprietor migrated to Bangalore from Gujarat. Mainly PVC is
recycled in this unit. The unit is located in south Bangalore. The factory consists of 2000 sq ft
area for production with two rooms and one godown-cum-sorting place measuring the same area.
The house keeping is exceptionally good.
PVC electric cable wires are recycled. The raw material is obtained through a wholesaler who is
a regular supplier to this unit.
97
Recycling Process:
The electric cables are sorted according to color and then cut into small pieces manually. The cut
pieces are then ground in the grinder and put in the high speed mixer along with color
masterbatch. No additives are used. The ground matter is fed in the extruder at high temperature.
The pellets are either sold or used for manufacturing of irrigation pipes in-house.
Type of Machinery:
1. Grinder 15hp 1 No.
2. High Speed Mixer 10 hp 1 No.
3. Extruder 75mm/25 hp 1 No.
4. Pelletiser 1hp 1 No.
Capacity:
Actual Capacity 12 tons per month
Financial Analysis
1. Running Cost
Raw Material
PVC Electric Cables 12,000 25.00 300,000
and Wires
Total 300,000
Laborers or Staff
Type No. Salary Paid Rs. Per Salary per Month
Month Rs.
Men 4 2,000 8,000
Women 10 900 9,000
Machine Operator 1 2,800 2,800
Total 19,800
98
Inputs and Rent
Power and Utilities, Transportation, Additives 40,000
etc.,
Rent 6,000
Total 46,000
2. Capital Cost
Extruder 175,000
Pelletiser 45,000
Grinder 45,000
Total 310,000 325,000
3. Sales
per Month per Kg
PP Granules 12,000 38.00 456,000
Total 456,000


310,000 = 31,000/12 =2583 Rs. per Month

325,000 = 39,000/12 = 3,250 Rs. per Month
Total = 5,833 Rs. per Month
99
Net profit.
1. Product ratio = 156000/456,000 x 100% = 34.21%
3. Return on investment = 84367/325,000 x 100% = 26%

Interest ratio = 3,250/87617 x 100% = 3.70 %
a) Quality ratio = 21,000/46,000 x 100 = 40.00%
( price of the virgin PVC = 46,000 Rs./ton)
c) Net Profit ratio = 84367/456,000 x 100= 18.50%
References
Agrawal G.D., 1996. Dust and Occupational Diseases in IndiaIn: Jaitli H. Dusty Down, New
Delh: Society for Participatory Research in India
Balachandani N.M. 1980. Extrusion of Plastics, Bangalore: Anit Industrial Publications.
Batiuk M. 1977. Polyvinyl Chloride Extrusion, In: Nass L. (ed). Encyclopedia of PVC, New
York: Marcel Dekker.
Beadle J.D. (ed). 1971. Plastics Forming, London: Mcmillan Engineering Educations.
Brandrup J. (ed). 1975. Polymer Handbook, London: John Wiely and Sons.
Braun K.J. Extrusion, In: Beadle J.D. (ed). Plastics Forming, London: Mcmillan Engineering
Educations.
Briston J.H. 1974. Plastics in Contact with Food, London: Food Trade Press Ltd.
Brydson J.A. 1973. Principles of Plastics Extrusion, London: Applied Science Publications.
Chanda M. 1987. Plastics Technology Handbook, New York: Marcel Dekker Inc.
Mark Heman. et al., (ed)., 1989. Encyclopedia of Polymer Science and Engineering, New York:
John Wiely and Sons.
Deutcher I. 1980. Devolatilisation of Plastics, Germany: VDI-Verlag Gmbh.
Mcmillan F. 1996. Polyolefin Overview, In: Joseph Solomon, (editor in chief), Polymer
Materials Encyclopedia, London: CRC Press.
Nass L. (ed). Encyclopedia of PVC, New York: Marcel Dekker.
100
Ohtani H. 1996. Degradation, In: Joseph Solomon, (editor in chief), Polymer Materials
Encyclopedia, London: CRC Press.
Papaspyrides D.C. 1996. Recycling Plastics, In: Joseph Solomon, (editor in chief), Polymer
Ross J.F. 1996. Plyethylene (Commercial), In: Joseph Solomon, (editor in chief), Polymer
Scheirs J. 1996. Polyethylene Recycled, In: Joseph Solomon, (editor in chief), Polymer
Schenkel G. 1966. Plastic Extrusion Technology and Theory, London: ILIFFE Books Ltd.
Williomson C.J. 1992. 150 Years of Plastics Degradation, In: Allen N.S. et al. (ed). Polymers
in Conservation, London: Royal Society of Chemistry.
101
CHAPTER 5 OCCUPATIONAL HEALTH IMPACT OF PLASTIC
RECYCLING
Dr. Vasundhra3
This chapter outlines the possible health impacts on the various actors involved in the process of
plastic recycling viz. the waste pickers, Junk Dealers and wholesalers involved in the recovery of
plastic from the municipal waste stream and those working in the plastic reprocessing unit. Data
on the possible health impact was collected through observation of the activities performed by
the various actors and through informal discussion with them.
5.1 Health Impact of Waste Recovery
Waste for the reprocessing industry as mentioned in the earlier chapter, is recovered by a chain
of actors starting from the waste pickers, junk dealers and the whole salers. In some
communities, house to house collection of waste has been started employing the waste pickers.
For the purpose of this study, a community based waste collection scheme, a Junk Dealers shop
and a wholesalers shop were visited. The health risks observed during the visit is presented in
table 1
3
This paper is an abridged version of a report prepared by Dr. Vasundhara, commissioned for this Study. Dr.
Vasundhra has served as Prof. Prof, and Head of Department of community medicine since 1980. She is a
consultant with government of India on maternal and child health. She is also an expert on industrial health.
102
Table 1 Health Hazards of Waste Recovery
Actor Activity Possible Health Risks
Waste Picker Collection from the -Cuts and injuries due to presence of broken glass,
bins sharps, needles which may lead to septic wounds and
tetanus.
-Exposure to fumes causing irritation of nose, throat
and lungs. Vulnerability to upper respiratory ailments
like rhinitis, shortness of breath, and asthma.
-Contact with feacal matter and the risk of
contracting gastrointestinal diseases and worm
infestations.
-Vulnerable to blood borne diseases if hospital waste
is collected.
Community Based -Exposure to sun, radiation and rain.
Collection Schemes
-Vulnerable to worm infestation as waste is sorted
bare hand.
Itinerant Buyer --Injuries due to sharps in the waste.
-Callosities4 on the fingers observed .
-Ergonomic problems like body ache, leg ache due to

long distances traveled.
Junk Dealer Sorting and baling -Exposure to dust during sorting and unloading could
cause allergic respiratory disorders.
-Ergonomic problems like body ache, back ache and
fatigue.
- Eyestrain and tenosynovitis.
-Chemical injury depending on the type of chemicals
that they come in contact with and skin allergy.
-Accidents due to sharps.
Whole saler Washing, sorting Health risks can occur during the washing stage as
and baling cheap detergents and caustic soda are used.
Continuos exposure can cause shriveled skin known
as washermans hands/ Contact with washing soda
may produce blisters.
4
Hardening and drying of skin due to repeated fiction.
103
5.2 Health Impact of Plastic Reprocessing
Reprocessing of plastic involves the following stages: size reduction, mixing of additives,
Extrusion and pelletisation. For the purpose of this study four recycling enterprises were visited
and air quality monitoring test was conducted in one of the units.
The possible health impact due to the procedures adopted in the various stages are presented in
the Table 2. and Table 3. presents the case studies of the four units .
Table 2 : Health Impact of Plastic Reprocessing

Stages Possible Health Impacts
Size reduction of During this operation, tiny particles of plastic are ejected at high speed
grinding and the shredder is electrically operated. Dust particles are also
generated during this operation.
Ejection of particles at high speed can cause accidental injuries. Dust

particles may be inhaled and retained in the lung tissue causing upper
respiratory ailments. Further, contact of dust particles with skin can
cause dermatitis or skin disorders.
Effect of Additives Use of stabilisers like lead sulphate or sterate which are highly toxic
(Plasticisers and may enter the food chain if used for food packaging. Plasticers used
coloring pigments) in the industry are highly inflammable and can lead to fire accidents.
The pigments commonly used for coloring are reported to be

cadmium, cobalt,
chromium, lead or selenium, titanium oxide and iron oxide.
Cumulative effect of exposure to this pigment can cause injury to the
body tissue.
Specific health impact of the various pigments used in the industry are
:
Cadmium: Chronic exposure can produce nose bleeding, nausea,

abdominal pain or diahorrea. Loss of weight, cough, dyspnea and
pulmonary emphysema occur due to cumulative exposure. Acute
poisoning can cause dryness of throat, chest pain, headache, diahorrea
and weakness.
Chromium : Possible hazards are dermatitis, chrome ulcers,
perforation of nasal septum and carcinoma of lungs.
Cobalt: Respiratory distress, skin allergy and erythrocytosis occur due
to chronic exposure.
Selenium: Exposure to selenium fumes can cause irritation of eyes,
nose and throat;
Zinc Chloride at high temperature can cause respiratory distress,
104
constriction of chest, dryness of throat and slight cough.
Lead: This gains entry to the body through ingestion, inhalation and
absorption through the skin. Hazards of organic lead sulphide
compound include insomnia, loss of weight, anorexia, nausea and
psychological disorder like restlessness, hallucination and suicidal
tendency.
Extrusion At this stage volatile matter is released. The vapors released are
styrene and benzene. These can cause pharyngitis, rhinitis and
unproductive cough.
Inhalation of fumes released are chlorine and HCL can affect the
upper respiratory tract and lachrynation of eyes.
Vibration and mechanical friction that occur during this process can
cause white fingers and continuous friction may lead to callosities.
It is to be noted that there is a long latency period between the point of exposure and the
occurrence of the disorder which makes it difficult to correlate any illness to the type of
exposure.
Product Manufacturing
As the combustion process during the recycling process is rarely complete and the material is
porous, there is a possibility of lechate of toxic mateirals (eg.pigments) if the products are used
for storing food or water.
105
Table 3. Case studies : The results of the case studies are presented below:.
Parameters Case Study 1: Case Study 2 Case Study 3 Case Study 4
affecting
health
End Product Pellets Pellets Pellets Irrigation pipes
Location Residential area Residential area Industrial area Industrial area

Physical
Envt.
- Congestion No Adequate but not No congested.

well managed.
-Ventilation cross ventilation Inadequate. Smoke Good Not available
provided but and fumes were
inadequate found lingering in
the processing area.
Inadequate
Lighting Adequate Not available Good Adequate
-Washing Not available Not available Not available
facilities for
employees. very high
-Heat very high very high very high very high
-Noise very high very high very high very high
-Smoke high very high high
Safety
Measures:
Use of No gloves or masks Not used Not used Not used
protective given to employees.
equipment.
No safety norms
Safety against followed regarding Fire risk due to Fire risks due to Fire risk exist.
fire electrical electrical electrical
connections. connections exist. connection exist.
106
affecting
health

Identified -Accidental injuries -Heat exhaustion -Accidental injuries -Exposure to
Health like burns, electric and skin disorders due to electric chlorine fumes and
impacts shock, eyeinjury due to excessive shock, burns and HCL fumes causing
and fire accidents heat in the fire. cough, increased
processing area. sputum,
- Respiratory -Postural problems breathlessness,
ailments due to the -Fumes can cause due to loads carried, laryngospasm and
dust levels present. respiratory illness. and sorting for a bronchospasm.
long time.
-Noise level beyond -Loss of hearing -Exposure to
the acceptable limits and nuisance to -Respiratory Carbon Monoxide
.(ref. table 3 for neighbors due to ailments due to fumes may affect
effects). high level of noise. exposure to dust the central nervous
and inhalation of system.
--Dehydration -Shocks, burns and fumes.
possible for fire hazard due to -Sulphur dioxide
employees due to lack of proper -Discomfort and and Nitrogen Oxide
excessive heat. electrical health exhaustion. may cause tremors,
connections. paralysis and
-Skin infections like -Nose irritation and respiratory tract
chlor acne due to -Accidental injuries nausea due to the ailments.
contact with like fall, and burns. smell.
pigments . -Heat exhaustion
-Psychological and heat cramps.
stress
-Possibility of -Headache ,
endangering irritation, fatigue
reproductive health and deafness due to
which need to be the noise level
verified further. present possible.
-Dust particles
present may cause
fibrosis of lungs.
-Possibility of
affecting the
reproductive health
.
107
affecting
health

Suggestions Safety norms Safety norms for Design of shredder
particularly for preventing electrical to be improved. -
electricity to be and fire hazards.
enforced. Safety norms to be
Provision of enforced.
-Improvement in protective
physical equipments and
environment by washing facilities.
providing exhaust
ventilation and Ventilation to be
washing facility. improved.
-Monitoring of air
quality to be made
mandatory.
-Shredder design to
be improved for
preventing
accidents
108
5.3 Air Quality Monitoring
Air quality and noise monitoring test was conducted in one of the units located in a residential
area. The test yielded the following results:
Table 4. Results of Air Quality Monitoring

Threshold Amount
Parameter limit (mg/m ) Health Impact
(mg/m ) present in the
test area
Suspended Respirable particulate matter less than 5microns/m can
Particulate 501 1491 get deposited in the lung tissue. The cumulative effect
matter can result in fibrosis. This would lead to reduction in
lung elasticity and worker may suffer from breathing
problems.
-
Respirable 241 Depending on the type of particulate matter there is a
particulate risk of contracting bronchitis. Allergic rhinitis with
matter excessive lachrynation due to eye irritation, dermatitis
can also occur.
SO <5 11 At 5 pp.m SO causes minor irritation. It can lead to
burning, dryness and pain in the nose with altered sense
of smell. Severe effect will be felt at 20-50 pp.m while
concentration up to 100 pp.m could prove to be fatal.
NO 5 21 NO is a powerful lung irritant. At concentration above
500 pp.m, it may lead to bronchospasm, pulmonary
odema and respiratory failure . The effect of NO at
various levels of exposure is as follows:
Level Effect
Between 1 -5 Lung problems
20 - 50 Minor irritation
100 - 250 could prove to be fatal.
CO 2000 2916 Carbon monoxide has affinity for iron. It can combine
with haemoglobin to produce carboxyhaemoglobin
which can alter the functioning of central nervous
system. This may affect visual & auditory response;
hand and eye coordination; finger dexterity, loss of
memory and alterness.
Hydrocarbon Benzene-0 16 Prolonged exposure to benzene can cause cancer.
CO - 30 Benzene affects bone marrow which could lead to
aplastic anaemia, haemorrage of the gums or retina and
epistaxes.
Noise 75 db 96 db Effects of exposure to noise can cause headache, fatigue
irritation, raised blood pressure and deafness.
109
5.4 Recommendation
The present case studies were limited in observation and a detailed medical examination
is required to confirm the health risks involved.
The growing demand for post-consumption recycled products is increasing exposing
greater number of people to hazards of plastic reprocessing. This calls for a study on
health economics of this venture.
As hospital waste is retrieved by the waste pickers, a study on the life cycle of plastic
waste from hospitals is required.
Impact of plastic recycling on the reproductive health need to be studied in detail.
References
Donald Hunter. 1978. Disease of Occupation, London: Hodder & Stoughton.

DSouza R.S. 1992. Plastics - Today & Tomorrow, A Guide to Plastics, Bangalore: Karnataka
Small Scale Plastic Manufacturers Association.
Hussain Tanveer, Rastogi S.K. 1996. health effect of Indoor Air Polution, Indian Journal of
Industrial Medicine, 42(3).
Inge Lardinois, Arnold Van de Klundert,1995. Plastic waste : Options for Small Scale Resource
Recovery, Gouda, The Netherlands: WASTE.
Moriyama Euchi, Collecive promotion of occupational safety and health in small and medium
sized enterrpises.
Rangegowda N.S, Vasundhara M.K. 1992. A Study of Risk Perception of Hazards by Asphalt
Workers, conference document, National IAPSM conference.
Ratnakar U.P, Rajmohan H.R, Vasundhara M.K. 1991. An Enquiry into Work Environmental
Status and Health of Workers Involved in Production of Incense Sticks in city of
Bangalore, J.I.P.H.A.
Srikant.V, Srikanta L.N, Vasundhara M.K. 1992. Knowledge of Health Professionsl Regarding
Waste Management in Health Institutions, Souvenier, VII Annual Conference KACH
Conference.
110
CHAPTER 6 ISSUES.
This preliminary research suggests that the financial viability of plastic recycling industries may
not be a sole function of inflow and outflow of money. There seems to be various other forces at
work which substantially contribute towards financial effectiveness of these enterprises.
Following is a suggestive overview of such factors which make these industries possible to be
run on profitable level.
6.1 Plastic Recycling Industries as Small Scale Industries

The growth of plastic small scale processing and reprocessing industries, as other Small Scale
Industries (SSI) in India, began in the decade of eighties with the announcement of the new
industrial policy. Policy instruments adopted by the Government to encourage the growth of SSI
comprised various incentives such as reservation of certain sectors for SSI, and financial and
fiscal incentives (Balasubrmanya, 1995). SSI generate 38% of the total employment and has
6.77% of the total capital investment. SSI industry of rubber and plastic products, which are
declared as reserved products5 constitute 4.6% of the total number of SSI units, generate 5% of
employment in SSI and has 8.4% of investment (Pain, 1990). SSI units in India enjoy following
advantages,
They are protected from competition from large scale industries, hence as per SSI policy, no
industry can have more than Rs. 3,00,00,000 of investment in plastic processing and
reprocessing unit.
Many of the SSI units in India are exempted from payment of excise duty on the final
products. Plastic recycled products were exempted from payment of excise duty till two
years back which was increased to 7 % till recently. It is currently kept at 3 % which also is
being lobbied by the plastic association to be removed.
They are also exempted from the tiresome procedural formalities. A plastic recycling unit
needs to have a power point passed by the local electricity board at the least. If they want
they can register with Industrial Development Corporation which is not mandatory. As a
result most of the plastic processing and reprocessing units in Bangalore has an unregistered
existence. Power may be illegally drawn from the neighbouring unit, minimum of 600 sq.m.
of space and an extruder can be enough to start plastic recycling business.
Most of them having less than 5-7 employees can not be covered under labor law.
Plastic processing and reprocessing industries are exempted from monitoring by Pollution
Control Board.
On the one side, plastic recycling industries significantly benefit due to Government's industrial
policy favoring them, on the other, they not only survive but play a crucial role in the overall
5
It means that large scale industries, having more than Rs. 3,00,00,000 of capital investment, can not establish
plastic recycling industries. Hence, these industries are protected from the competition from large scale industries.
111
development of the industrial sector with very marginal institutional support. Following are
some of the issues discussed in this context with reference to plastic processing and reprocessing
industry:
6.1.1 Finance
Majority of the plastic processing and reprocessing units seem to have raised funds for
investment through personal sources and very rarely are dependent on State financing
institutions. Marwari community dominantly has the ownership of plastic reprocessing units in
Bangalore and also in other parts of India. It has a social structure which although is
decentralised in space, is centralized by conventions (Solomon, 1996). As a result it has a vast
and efficient economic networking and not only the business but the skills, ethos, conventions
and contacts are passed from one generation to another. This may be true for any other business
community in India. Not only clustering together, dominance by a particular community in
business plays a crucial role in the development of the industry.
6.1.2 Technology
Though level of technology in the plastic reprocessing unit apparently is primitive, close
proximity of individually managed units promotes a vibrant system of spread of technological
innovation. There exist a collective system through which a new idea is easily picked up and
further developed. For example, a local fabricator developed a method for production of kodam
to avoid an entire round of extrusion, which is widely used by all other industries in Bangalore.
The other case in reference is PVC coated light tension cable production in one of the slums in
Delhi. Here 2000 such firms located in a neighbourhood control 30% of the countrys market.
Highly informal, home based existence of these industries produce 27 different varieties of cable
which require fairly developed technical skills (Solomon, 1996).
6.1.3 Industrial Cluster
Other than playing an important role for technological innovations, clustering of individual units
promotes competition in cooperation. It facilitates interaction among the industries to improve
negotiation with market and authorities. They formulate self-regulatory mechanisms, e.g., the
Karnataka Small Scale Plastic Manufacturers Association in Bangalore or the Tamilnadu
Plastic Manufacturers Association in Madras. This also facilitates trade of machines, material
and promote economy of scale.
All the above factors significantly contribute towards financial viability and profitability of these
enterprises. It is suggested that a judgment about their efficiency and effectiveness based on
inflow and outflow of the money might not prove appropriate.
112
Further Scope for Improvement
Given the not-so-simple nature of this industry, it may not be easy to suggest means for
improvement. However, following points are made which may give clue for the same,
Given their nature, these industries may have relatively higher cost of production
compared to larger industries.
To seek out ways to sustain their profit they may use cheaper inputs, pay low wages, and
hire temporary or casual labor.
Further technical improvements which may influence working environment or even
quality of the product (unless it has market) may not be adopted.
This can have two fold impact on workers health and on quality of product. Simple process
control measures and technological improvement can largely avoid pollution and health hazards.
some example of which are suggested below,
Washing of waste materials thoroughly before extrusion which substantially makes it less
susceptible to degradation and reduces emission of hazardous gasses.
Use of vented extruder which can remove moisture and gasses at the early stage of
extrusion and further reduces chances of degradation.
However, it would be appropriate to mention that these measures may not be adopted by large
section of plastic recyclers, not due to lack of knowledge or awareness but for the
simple reason that they increase cost of production manyfold. Cost of production being
function of various other factors it might not be easy task to influence plastic recyclers to
change their practices.
Role of Government Agencies and NGOs
Plastic Recovery
Plastic is one of the most sought after waste items as it has huge business at waste trading and
recycling level. It is high time that both waste recovery and trading activities are recognised and
legitimized by the Municipal or Government authorities to at least minimise harassment of those
dependent on it for livelihood. There are various ways by which municipal or government
authorities can provide support to these activities, for example, provision of space for sorting and
cleaning at subsidized or reduced rent. At more advanced level, it would be highly desirable if
design of waste management technology and system take into consideration these informal
activities and create more space for them.
NGOs can play crucial role by organizing those dependent on waste recovery and trading into
cooperatives or any other organisational form which may be felt suitable. However, it would be
important to note that such efforts should make the stakeholders more equipped instead of
dependent on the organizing agency. For example, it is felt that provision of micro credit and
113
subsidized place for sorting, cleaning and storing waste materials can prove highly appropriate
for a group of waste pickers or IWBs to improve their socio-economic and living standards.
NGOs' support may be in terms of training in accounting and management and lobbying with the
official agencies. At broader level, w NGOs can lobby for enactment of legislation in support of
waste recovery and trading activities.
Plastic Recycling
Development of safe and low cost technology for which it might not have capacity. At
least it can provide institutional and scientific support for such innovations.
Development and dissemination of safety, process and product standards in consultation
with plastic associations and made mandatory.
The entire organisation of plastic recycling business may be much more complex than what it
may be grasped through limited exposure for this research. Information generated for this
research at least indicate that various forces such as national and international industrial policies,
traditional community structure and its influence on financial viability of these industries are at
work. Understanding of the interplay of these forces may take much more detailed study and
wider sample, particularly before any suggestions are made for the improvement.
The real support may be provided to minimise occupational health hazards to which not only
workers but the owners of the premises are also exposed, though in lesser degree. Here, probably
NGOs can play a catalytic role in generating and disseminating information through its
networking. They can also help by providing multidisciplinary consultation to the recyclers and
their workers.
Basel Convention
The International Regulation of Transboundary Traffic in Hazardous Wastes, The 1989 Basel
convention of which India is one of the signatories prohibits transboundary movement of
Wastes from production, formation and use of resins, latex, plasticisers, glues and adhesives,
Wastes collected from households (Kummer, 1992)
This is an important aspect as it influences issue of import of plastic waste and their
environmental health impact and hence discussed here.
The Basel Ban Proposal sponsored by Nordic countries which prohibits transboundary trade of
all waste including those meant for recycling, was unanimously adopted in March 1994. The
amendment, although, did not include distinction between disposable and recyclable waste, it
offers several loopholes which India could exploit in order to ensure continuous import of
recyclable waste (EPW, 1995). The amendment also provides that the movement of the
disposable waste be banned with immediate effect, while movement of recyclable waste be
114
prohibited from 1 January 1998. Hence India still continues to provide licenses for import of
waste used as raw material. Although, recently a division bench of Supreme Court passed an
interim order banning import of hazardous and toxic waste. The Court has directed the Center
and the States not to issue any fresh import licenses for this purpose (Down to Earth, 1997).
However it is important to note that definition of hazardous waste adopted by Basel convention
differs from what is included in the Hazardous Waste (Management and Handling) Rules, 1989
of Environment (Protection) Act, 1986 of Government of India. In fact, India had earlier voted
for the alternative draft of Basel Ban Proposal proposed by OECD countries, which made
distinction between disposable and recyclable waste.
However within India, plastic processing and reprocessing industries are exempted from
monitoring by Pollution Control Board. It is ironical enough that those requirements of
International agreements which will affect the transnational movement would be better
monitored, while those that have an impact at the local level - local consumers or workers or
environment - would continue to be neglected.
Import of Plastic Waste
In reality import of plastic scrap for recycling may not be very attractive as it is projected. The
entrepreneur who buys this plastic waste has to purchase it in large quantities viz. a container
weighing 22 tons for which he /she requires enough storage space and capital to pay $260 per
ton (1994 rates) (Saskia, 1994). However the case of PET bottles is different. Two plants in
India has the technology to recycle PET bottle waste and they import waste for that purpose.
Interestingly, PET waste from the municipal waste stream is not collected by the waste pickers
as it has no market value due to limited capacity of both plants and cheap availability of clean
waste from abroad. It is a point for discussion whether import of plastic waste would have any
impact on domestic plastic recovery and recycling.
115
References
M.H. Balasubramaniya. 1995. Reservation Policy for Small Scale Industry: How it Delivered
the goods?, Economic and Political Weekly, May 17.
Editorial. 1995. Waste Pact, Economic and Political Weekly, Oct. 7.
Katharina Kummer, 1992. The International Regulation of Transboundary Traffic in Hazardous
Wastes: The 1989 Basel Convention, International and Comparative Law Quarterly, July.
G.C. Pain. 1990. A Manual on Occupational Health in Small Scale Industries of India, Calcutta:
All India Institute of Hygiene and Public Health.
Saskia Jordens. 1995. Plastic Recycling Enterprises in Bangalore, India, Thesis Submitted to
Universiteit van Amsterdam.
Solomon Benjamin. 1985. Neighbourhood as Factory: the Influence of Land Development and
Civic Politics on an Industrial Cluster in Delhi, India, Ph.D. Thesis Submitted to
Massachusetts Institute of Technology.
1997. Tirade Against Toxins, Down to Earth, May 31.
The Tamil Nadu Plastics Manufacturers Association. 1995. Proceedings of the Seminar on
Energy Savings and Ecofriendly Processing in Plastics, Madras.
116
117
ANNEX 1 EXAMPLE OF CERTIFICATE
118
119

Plastics 2

Uploaded by

Plastics 2

Uploaded by

Plastic Recycling in

Nieuwehaven 201 fax: +31 182 550313

Code: CS-pla ind

Inge Lardinois, UWEP research coordinator

CHAPTER 2 PLASTIC INDUSTRY IN INDIA .........................................................................8

CHAPTER 3 PLASTIC RECOVERY : PROCESS, PRACTICES AND FINANCIAL

CHAPTER 4 PLASTIC REPROCESSING: PROCESS, PRACTICES AND FINANCIAL

CHAPTER 5 OCCUPATIONAL HEALTH IMPACT OF PLASTIC RECYCLING.........102

ANNEX 1 EXAMPLE OF CERTIFICATE........................................................................118

1.1 Research Methodology

1.1.1 Plastic Recycling Units

2.1 Plastic Recycling Industry in India

2.1.2 The Spread

Figure 2. Recycling Industry: Regionwise

Region PVC HDPE LD/LLD/H PP Other Total

Region PVC HDPE LD/LLD PP Others Total

2.2.2 Amount of Plastic Waste Recycled

2.2.3 Nature of Plastic Recycling Units

2.2.4 Types of Plastic Waste

Grade A: This waste is produced during plastic manufacturing and compounding.

2.2.5 Types of Reprocessing Units

Table 3. Application of Recycled Plastics

Type Method Application

2.3 Associations/Organisations Dealing with Plastics

2.4 Recycling Technologies

2.5 Policy Issues

Part I: PROCESS AND PRACTICES

3.1 Recovery of Plastic Waste

3.1.1 Waste Picker

3.3 Middle Dealer

Lowest Level of Sorting

Highest Level of Sorting

PART II: FINANCIAL ANALYSIS, CASE STUDIES

3.5 Waste Picker

Table 1.1 Quantity and Type of Material Collected

3.7 Middle Dealer

3.7.1 Sharvana Paper Mart

Financial Data Analysis

Table 3.1.1. Waste Material and Purchase Price

Table 3.1.3 Assets

Material Type Amount Selling Price Total Selling Price

Gross profit before depreciation and interest

Depreciation 10% on plant and machinery

1. Product ratio = 16140/65628 x 100% = 24.59%

2. Gross profit ratio = 10540/65628 x 100% = 16%

3. Return on investment =10105/37400 x 100% = 27%

4. Financial capacity analysis

a) Quality ratio = 47000/52000 x 100 = 90.38 %

b) Fixed costs ratio =37400/65628 x 100% = 56.98 %

c) Net Profit ratio = 10105/65628 x 100 = 15.39 %

Financial Data Analysis

Table 3.2.1 Raw Material

Table 3.2.3 Assets

Gross profit before depreciation and interest

Sales 30,036 Rs. per Month

Depreciation 10% on plant and machinery

1. Product ratio = 9821/30036 x 100% = 32.66%

2. Gross profit ratio = 6012/30036 x 100% = 20%

3. Return on investment = 5937/6000 x 100% = 99%

4. Financial capacity analysis

a) Quality ratio = 45333/52000 x 100 = 87 %

b) Fixed costs ratio = 6000/30036 x 100% = 20 %

c) Net Profit ratio = 5937/30036 x 100 = 20 %

3.7.3 Gora Babu

Financial Data Collection

Table 3.3.2 Other Inputs

Type Total Rs./Month

Table 3.3.3 Assets

Table 3.3.4 Sale after Sorting

Sales 30,440 Rs. per Month

Depreciation 10% on plant and machinery

1. Product ratio = 10304/30440 x 100% = 33.85%

2. Gross profit ratio = 6644/30440 x 100% = 21.82 %

3. Return on investment = 6565/6500 x 100% = 101%

4. Financial capacity analysis

a) Quality ratio = 47000/52000 x 100 = 90.38 %