{"id":29511,"date":"2024-02-12T10:21:51","date_gmt":"2024-02-12T10:21:51","guid":{"rendered":"https:\/\/smallbusinesshub.in\/?p=29511"},"modified":"2024-02-12T10:24:32","modified_gmt":"2024-02-12T10:24:32","slug":"scrap-business-in-india","status":"publish","type":"post","link":"https:\/\/smallbusinesshub.in\/scrap-business-in-india\/","title":{"rendered":"Things to know before starting a Scrap Business in India"},"content":{"rendered":"\n<p>Until a few years ago, the scrap business in India was considered a low-class occupation. However, times have changed.<\/p>\n\n\n\n<p>Rapid urbanization in India has led to a surge in demand for scrap metal and other recyclable materials.<\/p>\n\n\n\n<p>The Indian government is also supportive of the scrap business, introducing various policies and schemes to promote its growth.<\/p>\n\n\n\n<p>If you are looking to start a low-cost, sustainable business, the scrap business is definitely worth considering. In this article, we will share some important information you need to know before starting a scrap business in India.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_64 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >In this Post<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/smallbusinesshub.in\/scrap-business-in-india\/#Ideal_Locations_for_Starting_a_Scrap_Business\" title=\"Ideal Locations for Starting a Scrap Business\">Ideal Locations for Starting a Scrap Business<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/smallbusinesshub.in\/scrap-business-in-india\/#Type_of_Scrap_to_Collect\" title=\"Type of Scrap to Collect\">Type of Scrap to Collect<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/smallbusinesshub.in\/scrap-business-in-india\/#The_Licenses_and_Permits_required\" title=\"The Licenses and Permits required\">The Licenses and Permits required<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/smallbusinesshub.in\/scrap-business-in-india\/#Investment_Required_to_Start_a_Scrap_Business\" title=\"Investment Required to Start a Scrap Business\">Investment Required to Start a Scrap Business<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/smallbusinesshub.in\/scrap-business-in-india\/#Government_Support_for_Scrap_Business\" title=\"Government Support for Scrap Business\">Government Support for Scrap Business<\/a><\/li><\/ul><\/nav><\/div>\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Ideal_Locations_for_Starting_a_Scrap_Business\"><\/span>Ideal Locations for Starting a Scrap Business<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"536\" src=\"https:\/\/smallbusinesshub.in\/wp-content\/uploads\/2024\/02\/Scrap-business-in-India-1024x536.jpg\" alt=\"Scrap business in India\" class=\"wp-image-29516\" srcset=\"https:\/\/smallbusinesshub.in\/wp-content\/uploads\/2024\/02\/Scrap-business-in-India-1024x536.jpg 1024w, https:\/\/smallbusinesshub.in\/wp-content\/uploads\/2024\/02\/Scrap-business-in-India-300x157.jpg 300w, https:\/\/smallbusinesshub.in\/wp-content\/uploads\/2024\/02\/Scrap-business-in-India-768x402.jpg 768w, https:\/\/smallbusinesshub.in\/wp-content\/uploads\/2024\/02\/Scrap-business-in-India.jpg 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Residential areas, construction zones, and industrial hubs are ideal locations to start this business.<\/p>\n\n\n\n<p>Residential areas primarily generate paper and plastic scrap. Construction zones generate metal scrap and construction debris, while industrial hubs generate metal, plastic, and e-waste.<\/p>\n\n\n\n<p>Ensure you have enough space to store collected and sorted scrap. Your location should also have good road connections for transporting and collecting scrap.<\/p>\n\n\n\n<p>Ideally, locate your business near recycling plants or scrap buyers. Otherwise, you may spend most of your profits on transportation costs.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Type_of_Scrap_to_Collect\"><\/span>Type of Scrap to Collect<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>There are different types of scrap that can be recycled. Before starting your business, it&#8217;s important to decide which types of scrap you&#8217;ll collect. Here are some popular options:<\/p>\n\n\n\n<p><strong>Metals:<\/strong> Iron, steel, copper, brass, aluminium, lead, etc. This is the most common type of scrap business in India. Scrap metal can be recycled into new products, such as steel, aluminium, and copper.<\/p>\n\n\n\n<p><strong>Plastic:<\/strong> PET bottles, HDPE and LDPE plastics, etc. Plastic waste is a major problem in India. Plastic recycling businesses collect and recycle plastic waste into new products, such as bottles, bags, and fibres.<\/p>\n\n\n\n<p><strong>Paper:<\/strong> Cardboard, newspaper, office paper, etc. Paper is a major source of scrap in India. Paper recycling businesses collect and recycle paper waste into new paper products.<\/p>\n\n\n\n<p><strong>E-waste:<\/strong> Old computers, mobile phones, TVs, appliances, etc. E-waste is the fastest-growing waste stream in the world, and India is no exception. E-waste contains a number of valuable materials, such as gold, silver, and copper, which can be recycled.<\/p>\n\n\n\n<p>Analyse what types of scrap materials are readily available in your area and what types of scrap materials are in high demand in your area, then decide your scrap niche.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Licenses_and_Permits_required\"><\/span>The Licenses and Permits required<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The Licenses and Permits required to start a this business may vary from state to state and municipality to another. So it is better to consult a local chartered accountant to know the exact documents.<\/p>\n\n\n\n<p>Generally, to start a scrap business, you will require:<\/p>\n\n\n\n<ul>\n<li>GST registration<\/li>\n\n\n\n<li>Shop and Establishment certificate<\/li>\n\n\n\n<li>Business Registration<\/li>\n\n\n\n<li>Trade License<\/li>\n<\/ul>\n\n\n\n<p>In special cases, you may also require:<\/p>\n\n\n\n<ul>\n<li>Pollution Control Board (PCB) Certificate<\/li>\n\n\n\n<li>E-waste Handling Authorization (if you are collecting E-waste)<\/li>\n<\/ul>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0);color:#ee1c1c\" class=\"has-inline-color\"><strong><span style=\"text-decoration: underline;\">Also Read:<\/span><\/strong><\/mark><br><br><a href=\"https:\/\/smallbusinesshub.in\/electrical-shop-business\/\" data-type=\"post\" data-id=\"29434\">How to open Electric Shop Business | Complete Guide<\/a><br><br><a href=\"https:\/\/smallbusinesshub.in\/jcb-business\/\" data-type=\"post\" data-id=\"28048\">JCB Business in India | Complete Guide<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Investment_Required_to_Start_a_Scrap_Business\"><\/span>Investment Required to Start a Scrap Business<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"600\" height=\"188\" src=\"https:\/\/smallbusinesshub.in\/wp-content\/uploads\/2024\/02\/investment-for-scrap-business.jpg\" alt=\"investment for scrap business\" class=\"wp-image-29517\" srcset=\"https:\/\/smallbusinesshub.in\/wp-content\/uploads\/2024\/02\/investment-for-scrap-business.jpg 600w, https:\/\/smallbusinesshub.in\/wp-content\/uploads\/2024\/02\/investment-for-scrap-business-300x94.jpg 300w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><\/figure>\n\n\n\n<p>You can start a small-scale scrap business with an investment of 3 to 4 lakh rupees. Your major investment needs will be as follows:<\/p>\n\n\n\n<ul>\n<li>Purchase of basic tools and equipment (eg. weighing scales, handcarts, power tools, safety gear, magnets, metal files, etc.)<\/li>\n\n\n\n<li>Permits and licenses<\/li>\n\n\n\n<li>Vehicle for scrap collection and transportation<\/li>\n\n\n\n<li>Warehouse or storage space security deposit<\/li>\n\n\n\n<li>Ongoing monthly expenses will include warehouse rent, utility bills, labour salaries, and maintenance work.<\/li>\n<\/ul>\n\n\n\n<p>Starting a medium to large-scale scrap business with a <a href=\"https:\/\/www.indiamart.com\/proddetail\/scrap-sorting-line-2852171694448.html\" target=\"_blank\" rel=\"noopener\">scrap sorting machine<\/a> will require more investment. Scrap storage requires more space, so your investment needs will also vary depending on your location.<\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0);color:#ee1c1c\" class=\"has-inline-color\"><strong><span style=\"text-decoration: underline;\">Also Read:<\/span><\/strong><\/mark><br><br><a href=\"https:\/\/smallbusinesshub.in\/hardware-business\/\" data-type=\"post\" data-id=\"27827\">How to open a Hardware Shop in India | Complete Guide<\/a><br><br><a href=\"https:\/\/smallbusinesshub.in\/building-material-business\/\" data-type=\"post\" data-id=\"27812\">Building Materials Business | Complete Guide<\/a><\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Profit Margin in the Scrap Business<\/h4>\n\n\n\n<p>The typical profit margin for a scrap business in India is generally between 30% and 60%. Different types of scrap have different market values. For example, metals like copper and brass typically have higher margins than plastics or paper.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Government_Support_for_Scrap_Business\"><\/span>Government Support for Scrap Business<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The Indian government recognizes the importance of small-scale scrap businesses for their contribution to the economy and environment. Here are some ways they offer support<\/p>\n\n\n\n<ul>\n<li><strong>MUDRA Loan Scheme:<\/strong> This government-backed scheme offers various loan products for MSMEs, including small scrap businesses.<\/li>\n\n\n\n<li><strong>Prime Minister&#8217;s Employment Generation Programme (PMEGP): <\/strong>This scheme provides subsidized loans to individuals and groups for establishing new small businesses, including scrap processing units.\u00a0<\/li>\n\n\n\n<li><strong>Credit Guarantee Fund Scheme for MSMEs:<\/strong> This scheme provides credit guarantees to MSMEs from Commercial Banks, Financial Institutions, and SIDBI. This can help scrap businesses access loans at easier terms.<\/li>\n\n\n\n<li><strong>National Skill Development Corporation (NSDC):<\/strong> NSDC offers various skill development programs relevant to the scrap industry, such as waste management, metal processing, and sorting.\u00a0<\/li>\n<\/ul>\n\n\n\n<p>We hope this article has provided enough information about starting a scrap business in India. If you find this article helpful, kindly share it with your friends. If you have any additional questions, you can mention them in the comments section<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Until a few years ago, the scrap business in India was considered a low-class occupation. However, times have changed. Rapid urbanization in India has led to a surge in demand for scrap metal and other recyclable materials. The Indian government is also supportive of the scrap business, introducing various policies and schemes to promote its&hellip;&nbsp;<a href=\"https:\/\/smallbusinesshub.in\/scrap-business-in-india\/\" class=\"\" rel=\"bookmark\">Read More &raquo;<span class=\"screen-reader-text\">Things to know before starting a Scrap Business in India<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":29516,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"[\"title\",\"meta\",\"content\",\"tags\",\"post-navigation\",\"comments\"]","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","_ti_tpc_template_sync":false,"_ti_tpc_template_id":"","footnotes":""},"categories":[13],"tags":[],"_links":{"self":[{"href":"https:\/\/smallbusinesshub.in\/wp-json\/wp\/v2\/posts\/29511"}],"collection":[{"href":"https:\/\/smallbusinesshub.in\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/smallbusinesshub.in\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/smallbusinesshub.in\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/smallbusinesshub.in\/wp-json\/wp\/v2\/comments?post=29511"}],"version-history":[{"count":8,"href":"https:\/\/smallbusinesshub.in\/wp-json\/wp\/v2\/posts\/29511\/revisions"}],"predecessor-version":[{"id":29521,"href":"https:\/\/smallbusinesshub.in\/wp-json\/wp\/v2\/posts\/29511\/revisions\/29521"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/smallbusinesshub.in\/wp-json\/wp\/v2\/media\/29516"}],"wp:attachment":[{"href":"https:\/\/smallbusinesshub.in\/wp-json\/wp\/v2\/media?parent=29511"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/smallbusinesshub.in\/wp-json\/wp\/v2\/categories?post=29511"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/smallbusinesshub.in\/wp-json\/wp\/v2\/tags?post=29511"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}