§1What this business is

The unit makes two products that are sold together. Dust bins with lids are made by injection moulding: HDPE or PP granules are melted, injected into a mould under high pressure, cooled and released. One machine moulds the bin and a second moulds the lid. Garbage bags are made from rolls of biodegradable plastic film on an automatic C-fold bag-making machine that draws out the film, heat-seals it and cuts it into bags at 70 to 140 pieces a minute. The profile was written in June 2020 for safe disposal of solid waste from hospitals and housing, and names IS/ISO 17088 as the standard for the bags.

Capacity: 90,000 kg of biodegradable garbage bags and 1,59,000 dust bins (10 litre, with lid) a year; two shifts of 8 hours, 300 days. Annual sales value ₹5.70 crore.

§2Is it right for you?

Who it is for

A plastics processor or trader who already supplies housekeeping or hospital goods.

Who it is not for

Someone who cannot fund a month or more of costly film stock.

Advantages

  • Two products for the same buyers — bins and the bags that go in them
  • Hospitals, housing societies and municipal bodies buy all year
  • The same moulding machines can make other household items with new moulds
  • Compostable bags are allowed where thin plastic carry bags are banned

Drawbacks

  • Biodegradable film costs ₹300 a kg in the profile, five times HDPE
  • Raw material is 97% of the monthly cost, so margins depend on polymer prices
  • Many moulders already make dust bins
  • Compostable bags need certification before sale

Skills you need

  • Running and setting an injection moulding machine
  • Mould changing and upkeep
  • Heat sealing and bag-making settings
  • Selling to institutions and through tenders

Why difficulty 3/5: Standard moulding and bag-making, but certification and raw material cost need care.

§3Market

Who buys

  • Hospitals, clinics and health centres
  • Housing societies and households
  • Municipal bodies and housekeeping contractors

How it sells

  • Hospital and housekeeping supply dealers
  • Direct institutional orders and tenders
  • Household goods wholesalers and retailers

Good to know

  • The profile prices bags at ₹280 a kg and bins at ₹200 each.
  • Machine prices in the profile are before 18% GST, which it adds separately.

§4Raw material & machinery

ItemQtyCost
Automatic C-fold garbage bag making machine, 70–140 pieces a minute1₹9,00,000
Semi-automatic injection moulding machine (bins)1₹15,00,000
Semi-automatic injection moulding machine (lids)1₹7,50,000
Air compressor1₹95,000
Weighing machine1₹18,000
Office furniture and computer with printer—₹2,00,000

From: MSME-DI Chennai project profile — Garbage Bins (2020)

  • Biodegradable plastic film rolls10 tonnes a month at ₹300 a kg = ₹30,00,000
  • HDPE or PP granules15 tonnes a month at ₹60 a kg = ₹9,00,000

From: MSME-DI Chennai project profile — Garbage Bins (2020)

§5Licences & registration

  1. Udyam registration
  2. GST registration
  3. Registration as a producer under the Plastic Waste Management Rules
  4. Central Pollution Control Board certificate for making compostable plastic bags
  5. Consent from the State Pollution Control Board
  6. Factory licence where the worker and power limits apply

We can do this registration for you

§6Schemes & subsidies

At ₹81.04 lakh the project is above the PMEGP ceiling of ₹50 lakh for manufacturing. CGTMSE can cover the bank loan without collateral.

§7Money

How the investment is worked out: Plant and machinery ₹40,65,100 (machines and office equipment ₹34,45,000 + 18% GST ₹6,20,100) + working capital for one month ₹40,38,707 = ₹81,03,807. The shed is rented.

Working capital: One month of recurring cost, ₹40.39 L, of which ₹39.00 L is raw material. The profile says up to 3 months may be needed.

Prices from 2020 — check current machine and polymer prices.

How to prepare a loan file

§8Export potential

Confirm the HS code in the DGFT ITC(HS) lookup before you export

3923Plastic articles for conveying or packing goods, including sacks and bags3924Household and hygienic articles of plastics

Export council / board: Plastics Export Promotion Council (PLEXCONCIL)

  • The profile is written for the domestic health care and household market and does not discuss exports.

§9Risks — where people fail

  • Polymer prices rising after a fixed-price order is taken
  • Bags failing a compostability test
  • Mould damage stopping bin production
  • Slow payment by hospitals and local bodies

§1030 / 60 / 90-day plan

A general plan that applies to any business. A plan for this business will be added after research.

  1. Days 1–30: Visit a working plastic dust bins and biodegradable garbage bags unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
  2. Days 31–60: Udyam and the licences you need (Udyam registration, GST registration), a project report (DPR), and the scheme or loan file.
  3. Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.

§11Who to connect with

§12Watch

There is no episode on this business yet. Shows are coming soon on the Podcast page.

Want to start Plastic Dust Bins and Biodegradable Garbage Bags?

DPR, loan file or registration — ask us on WhatsApp.

Get a DPR / loan file made

Sources

  1. MSME-DI Chennai project profile — Garbage Bins (2020)

Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.