How to start Tyre Recycling Business?

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The Tyre Recycling Business has emerged as one of the most promising and sustainable industrial opportunities in today’s environmentally conscious world. With the automotive sector expanding rapidly and millions of vehicles hitting the roads annually, the volume of discarded tyres is growing at an alarming rate. These non-biodegradable waste materials pose a serious threat to landfills and ecosystems. This makes Tyre Recycling Business not only a highly profitable initiative but also a much-needed environmental solution.

Tyre recycling converts waste tyres into usable products like crumb rubber, rubber powder, pyrolysis oil, carbon black, and steel wire. These materials find application in multiple industries, such as construction, road paving, sports surfaces, footwear, and even renewable energy generation. With the Indian government pushing for sustainable development and waste-to-wealth initiatives under the Swachh Bharat and Atmanirbhar Bharat missions, the Tyre Recycling Business is gaining momentum as a viable MSME and startup idea.

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Scope and Potential of the Tyre Recycling Industry

The global tyre recycling market is estimated to surpass USD 9.5 billion by 2030, growing at a CAGR of over 5.3%. In India alone, more than 300 million tyres are discarded every year, and only a fraction of them are processed scientifically.

The Tyre Recycling Business taps into this massive volume of waste to produce high-demand raw materials like:

Crumb Rubber for roads and rubberized products
Rubber Powder for mats, tiles, and synthetic turf
Pyrolysis Oil used as industrial fuel
Carbon Black reused in plastics and inks
Steel Wire melted and resold to foundries

By reducing dependency on virgin materials and petroleum derivatives, tyre recycling also contributes toward a circular economy.

Raw Materials and Collection Sources

The primary input for the Tyre Recycling Business is used or scrap tyres, including:

Passenger car tyres
Truck and bus tyres
Two-wheeler tyres
Aircraft tyres (in some advanced setups)
Manufacturing scrap from tyre companies

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These can be sourced through:

Municipal solid waste collection units
Local garages and automobile service stations
Government auctions
Bulk tie-ups with logistics and transport fleets

Proper segregation and pre-processing are essential for efficient recycling and maximum yield.

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Tyre Recycling Methods

There are mainly two popular methods used in the Tyre Recycling Business:

Mechanical Recycling (Crumb Rubber Production)
- Tyres are shredded using crushers
- Steel and fiber are separated
- The rubber is ground into various mesh sizes (10–120 mesh)
- Used for roads, tracks, mats, and asphalt modification
Pyrolysis Recycling
- Tyres are heated in an oxygen-free reactor at 300–450°C
- Products include pyrolysis oil (fuel), carbon black, and steel wire
- This method offers high-value outputs and energy recovery

Advanced technologies also include devulcanization and chemical recycling, though they require higher investment.

Related Feasibility Study Reports: Crumb Rubber Powder From Waste Tyres

Machinery Required for Tyre Recycling Business

To establish a Tyre Recycling Business, the following machinery and equipment are typically needed:

Tyre cutting machine
Shredding unit
Granulator or crusher
Magnetic separator (for steel)
Vibro screen
Pyrolysis reactor (for pyrolysis-based units)
Oil-condensing and storage tanks
Dust collector and pollution control unit

The average cost of setting up a crumb rubber unit ranges from ?30 lakh to ?1 crore, depending on the capacity and automation level. Pyrolysis units may need ?50 lakh to ?2 crore in investment.

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Legal and Environmental Compliance

Due to the hazardous nature of tyre waste and emissions during recycling, proper licensing and approvals are essential:

Consent from State Pollution Control Board (SPCB)
Factory License and MSME Registration
Import License (if dealing in imported tyres)
Fire and safety compliance certificate
Environment Impact Assessment (for large units)
GST Registration

Additionally, the unit must comply with MoEF&CC norms, maintain a proper emissions control system, and safely manage any residual waste.

Market Demand and Buyers

Products from the Tyre Recycling Business are in high demand from various industries:

Pyrolysis Oil – used as a substitute for furnace oil in boilers
Crumb Rubber – utilized in road surfacing, tiles, and sports arenas
Rubber Powder – preferred by footwear, rubber, and plastic manufacturers
Carbon Black – repurposed in pigment and filler industries
Steel Wire – resold to foundries and scrap metal dealers

You can also supply directly to:

PWD and road contractors
Construction material manufacturers
Paint and ink companies
Fuel-based industries (brick kilns, chemical units)

Profitability and ROI Analysis

The Tyre Recycling Business offers excellent profitability with proper process and market linkage. Here’s an approximate analysis for a small unit processing 2 tons/day:

Monthly Revenue: ?8–?12 lakhs
Monthly Operating Costs: ?4–?6 lakhs
Net Profit: ?3–?5 lakhs
ROI Period: 12–18 months

With the government offering incentives under the Startup India, MSME, and Green Industry schemes, capital subsidies and tax exemptions are also available in some states.

Challenges and Solutions

Common challenges:

Unorganized sourcing of raw tyres
Pollution and odor control in pyrolysis
Product quality consistency
Regulatory approvals

Solutions:

Build a strong sourcing network locally
Invest in emission-control systems
Use automated quality monitoring tools
Stay updated with environmental regulations and circular economy trends

Conclusion

The Tyre Recycling Business is a future-ready opportunity that blends profitability with sustainability. As awareness about environmental hazards and resource conservation increases, tyre recycling will play a critical role in waste management and material reuse. Entrepreneurs who invest wisely in the right technology, regulatory compliance, and market linkages can create a scalable and impactful business model.

Select and Choose the Right Business Startup for You

Niir Project Consultancy Services (NPCS) has prepared project report on – Tyre Recycling Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities, Cost and Revenue, Plant Economics. The project report provided by NPCS gives a detailed market review. The report analyses the market confirms the availability of various necessities such as plant & machinery, raw materials and tells about the forecasting financial requirements. A lot of professionals have taken benefit from the project reports if you are interested in the business of Tyre Recycling Unit or any other business get in contact with us from the official website of NPCS.

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