§1What this business is
Scrap from old products and factory waste is collected, sorted, shredded, cleaned, melted, purified and cast into metal bars that factories reuse. Non-ferrous scrap (aluminium, copper, brass) fetches better prices than iron. The report plans 180 kg of metal bars a day with a segregation, cleaning, melting, refining and shaping machine line.
Capacity: 180 kg of metal bars a day on a 10-hour shift; year 1 at 55%.
§2Is it right for you?
Who it is for
Someone already in the scrap trade with a steady scrap supply and foundry buyers.
Who it is not for
Someone who cannot invest in pollution control or follow environmental rules.
Advantages
- Scrap is available in every town
- Recycled metal saves energy and has steady factory demand
- Metals can be recycled again and again
- Fits green and circular-economy goals
Drawbacks
- Melting causes smoke and needs pollution control
- Scrap prices follow global metal prices
- Sorting mixed scrap needs skill
- Strict pollution and hazardous-waste rules
Skills you need
- Identifying and grading scrap
- Furnace operation and metal refining
- Safety and pollution control
- Selling to foundries and factories
Why difficulty 4/5: Scrap trade knowledge and pollution compliance are the hard parts.
§3Market
Who buys
- Foundries and metal product makers
- Building, automotive and electrical industries
How it sells
- Direct sale to factories
- Metal traders
Good to know
- The report names building and construction as the largest end user and electronics as the fastest-growing source of scrap.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Metal segregation machine | 1 | ₹3,55,000 |
| Metal cleaner machine | 1 | ₹2,65,000 |
| Metal melting machine | 1 | ₹3,80,000 |
| Refining machine | 1 | ₹5,30,000 |
| Shaping machine | 1 | ₹2,00,000 |
From: PMEGP sample project report — Metal Recycling (prepared by Udyami/Samadhan)
- Scrap aluminium, copper, steel, brass and ironfrom end-of-life products and factory waste
From: PMEGP sample project report — Metal Recycling (prepared by Udyami/Samadhan)
Suppliers in Building Business Bazaar
Earth Sense Recycle Private Limited · Chengalpattu →Sez Recycling · Chengalpattu →Aer Worldwide India Pvt Ltd · Chennai →E Cycle Solutions Private Limited · Chennai →Rescalex · Chennai →Green E-Waste Pvt Ltd · Chennai →ASM Era Recycler · Chennai →Green Era Recyclers · Coimbatore →Green India Recyclers · Coimbatore →Techazar E-Cyclers Private Limited · Coimbatore →Dustman Waste Management & Recycling Pvt · Kancheepuram →Tes-Amm (India) Private Limited · Kancheepuram →
In our raw material database
Iron and steel scrap (melting scrap) →Aluminium scrap →Copper scrap →
§5Licences & registration
- Consent to establish and operate from the state pollution control board
- Authorisation under the Hazardous and Other Wastes Rules (where applicable)
- Factory licence
- Udyam registration
- GST registration
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
PMEGP (the report is a PMEGP sample), CGTMSE for loans without collateral, and Stand-Up India for SC/ST and women founders.
§7Money
How the investment is worked out: Report: plant & machinery ₹17.30 lakh, furniture ₹1.50 lakh, working capital ₹4.63 lakh = ₹23.43 lakh. Land own or rented (not costed).
Working capital: Working capital ₹4.63 lakh, of which bank finance ₹4.17 lakh; 15 days of raw material and 15 days of finished stock.
Year not printed on the report — check current machinery prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
- Confirm the 8-digit ITC(HS) line with DGFT or your customs broker.
- You need an Import Export Code (IEC) from DGFT before the first shipment.
- Import of metal scrap is regulated; check DGFT and hazardous-waste rules before buying imported scrap.
§9Risks — where people fail
- Pollution board action
- Sudden falls in metal prices
- Contaminated or stolen scrap
- Fire and burn injuries
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working metal scrap recycling unit unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Consent to establish and operate from the state pollution control board, Authorisation under the Hazardous and Other Wastes Rules (where applicable)), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
Associations, clusters and training institutes — the directory is being built. Connect
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Metal Scrap Recycling Unit?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.