Paper Recycling Business Plan

Paper recycling  is the circular process of turning old waste paper into new paper. Here is a solid paper recycling business plan you should consider.

Paper is widely used material in today’s world and it’s a 100% natural  and recyclable resource made of wood fibers. Paper is considered to be the major component of solid waste. Every year, over 400 millions metric ton of paper and its products are produced globally.

Startup plan:

Are you interested in starting a paper recycling business, then you have to understand the below points,

  • Firstly you have to understand the basics of recycling a business, and also make a clear plan is essential to make a successful business.
  • you have a good knowledge of where to collect the waste paper, technical and mechanical operating, and where to sell your finished goods, these points are mainly included. 
  • Market research is the first and most important task and you have to know if the companies in your location are willing to buy the products from you.
  • And also concentrate on a strategy plan for a successful recycling business, resources required to open a recycling plan, cost of setting up a waste paper plant, investments and return, requirement of total capital, arrangement etc.


  • Papers from different garbage bins are stored in a large garbage container. 
  • The collected paper is taken to the recycling plant and washed with soap solution and water to remove unwanted waste so that you can create a slurry. Next, add some specific materials and chemicals. 
  • Now the raw material is ready. To start paper recycling, you need a pulper. A pulper is a machine used to mush old paper through the use of water and chemicals and turn it into new paper through a process of pulping, screening, cleaning, drinking and bleaching. 

Industry: Manufacturing, recycling industry.

Related costs:

  • Depending on the type of the plant, a recycling plant can cost up to 2000000$, there are many maintenance costs involved like marketing costs of the finished products. 
  • The waste paper collection doesn’t cost much. Nearly 4-5 rupees is spent to buy 1kg of waste paper.
  • The amount you would spend depends upon how large your operation would be.
  • The costs  involved in many criteria are equipment, materials, machinery expenses, current and water bills, expenses of land buildings, marketing charges, advertising charges and operational costs and expenses.

Suitable for : Anyone, it is a margin based business you have to try to sell which product has the biggest profit margin.

Permits: safety certification, quality certification.

  •  The permissions from the concerned authorities and you will need to register for a variety of state of  taxes before you start your business,you need to pay taxes on your space under commercial space.
  • The register of business by GST registration for payment of tax.


  • washing soap, cleaning equipment, bleaching powder, tanks, containers, machines, jets, paper printers, paper packaging, place to store paper, later  job of printing, labeling and so on. 
  • And you need to have permanent standard power connection with stable water supply and also the constant supply of waste paper for your recycle plant.

Marketing plan:

  • Marketing and distribution is the most important process and before starting Your recycling business, please conduct a market survey and feasibility studies.
  • You have to create a strategy that will enable you to reach out to the various manufacturing/production companies.


  • Paper can be recycled up to 7 times which saves 70% of energy.
  • Paper recycling helps the environment by not polluting and dumping trash into landfills.
  • Recycling helps us to reuse materials, so it is not necessary to take raw materials from nature again.
  • It saves trees by not cutting trees down to make paper and it prevents gases from entering the atmosphere when burning paper.


  • Recycling uses energy to move and separate recycling items.
  • Paper recycling industry can cause serious environmental problems if not treated carefully. 
  • It takes toxic chemicals to recycle items and it takes time to move the recycle bin.

Franchise opportunity: There are not many franchise opportunities for paper recycling businesses.

Hope this article helps you. Please checkout other awesome business ideas mentioned in our blog. If you want to know about starting a plant nursery, click here . You can also checkout our other agriculture related posts here.

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