Aluminium Recycling Project Report



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Aluminium recycling is a great illustration of how to make efficient use of secondary materials. The melting behaviour of several categories of aluminium scrapings was studied in laboratory furnaces. Scrap type, surface conditions, size, and impurities all impact metal yield and scrap recyclability.

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Aluminium Recycling Plant Project Report

If you are planning to start your entrepreneurial journey by initiating a new business, then you have made the right choice by choosing the aluminium recycling business set up from many profitable business ideas in India. You can easily start your aluminium recycling plant with the required capital investment.

Due to its cheaper cost and reduced energy use, recycling aluminium has significant advantages over initial aluminium manufacturing. It is becoming increasingly essential in the overall supply of aluminium. The share of secondary aluminium production has been steadily increasing around the world. Secondary aluminium has been employed in a variety of industries, including transportation, construction, and packaging. Aluminium scrapings are separated into two categories: 

Categories Of Recycling Aluminium

Fresh Or Manufacturing Scrap And Old Scrap

New scrap is generated during the production and fabrication operations. They are simple to recycle and can be re-melted almost entirely without any preparation. The old scrap is contaminated with foreign elements and organics and comes from a variety of sources.

Secondary aluminium has been used in a variety of industries, including transportation, construction, and packaging. Aluminium scraps are divided into two categories: fresh or manufacturing scrap and old scrap. They are simple to recycle and can be re-melted almost entirely without any preparation.

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Principles Of Recycling Aluminium

Recycling scrap aluminium accounts for roughly 31% of all aluminium produced in the United States. The technique merely entails re-melting the metal, significantly less expensive and energy-intensive than producing fresh aluminium. It consumes only 5% of the energy required to manufacture new aluminium.

The melting process, usually done in a rotary furnace or hearth furnace, is an essential aspect of the secondary aluminium sector. Salt flux is used to preserve aluminium metal from burning while also absorbing and removing impurities and oxides. As a heat source, natural gas is burned with oxygen. The scrap and melts are mixed in the furnace as it rotates. Normally, the operating temperature is around 800oC.

Melting experiments of various aluminium scraps were carried out to evaluate the scrap’s recyclability and to study the melting behaviour of scrap metal in molten melts. A process model based on Computational Fluid Dynamics (CFD) was built to anticipate the melting rate and energy distribution.

Market Potential

Aluminium plays a significant role in the modern world through its numerous applications. Secondary aluminium production is the recycling of aluminium scrap into usable metal. It is an environmentally friendly process that uses 92 percent less energy than primary production. The capital cost of producing recycled aluminium is significantly lower than that of producing new aluminium. Along with collecting waste aluminium, you can also collect waste glass and start waste glass recycling business with the same business and make more money by manufacturing glass items or selling them either way for further manufacturing.

The aluminium industry works hard to stimulate consumer recycling by educating people about reducing their carbon footprint and increasing their chances of finding aluminium-based products.

Cubes are the material that is moulded into a shape that can be processed further. Various grades of cubes are created, which are used in the auto industry and electrical applications. Aluminium cubes are re-melted and processed into a wider range of products for downstream uses.

The ingots are then put through a series of processes or flattened into thin sheets, ultimately used to create new cans. Aluminum cubes can be utilised in various industries, including automotive, lighting, construction, mechanics, and consumer goods. Architects and builders are increasingly favouring aluminium, which opens up the possibility of more metal utilisation in the construction industry.

Applications Of Product

  • Gravity Die Casting and Pressure Die Casting for the automotive industry.
  • Machinery Spares Casting for Engineering Industries.
  • For the electrical industry: locks, clamps, panels, heat shrinks, and so forth.
  • To be used in an aluminium extrusion plant.
  • For aluminium powder manufacturing unit.
  • For aluminium utensil manufacturing unit.
  • As a de-oxidant in aluminium rolling mills and steel melting practices.

Types Of Aluminium Scrap 


This comes with a mixed mill finish and painted and anodized extrusions: Zinc, iron, felt, plastic, paper, cardboard, dirt, and other impurities should not be present in the material. Buyer and seller must agree on the percentages of mill finish to be coated.


Foil, Venetian blinds, castings, hair and screen wire, food containers, radiator shells, bottle caps, plastic, dirt, and other non-metallic items must be removed from clean, mixed old alloy sheet aluminium. Oil and grease should not account for more than 1% of the total. Tale may be used up to 10% of the time.


Baled or briquette aluminium cans: Used aluminium beverage cans that have been baled or briquette are iron-free and non-metallic. Before shipment, the customer and seller should agree on any changes to the specifications.


Clean Aluminum Lithographic Sheets: Alloys from the 1000 and 3000 series must be free of paper, plastic, highly inked sheets, and other impurities.8cm in any direction is the minimum size.


Mixed Aluminum Castings: Must be free of iron, brass, dirt, and other non-metallic objects and must contain all clean aluminium castings, which may contain car and aviation castings but no ingots. Oil and grease should not account for more than 2% of the total.


Aluminum castings with iron attachments: Must be made of aluminium and include auto and aeroplane castings. Buyer and seller must agree on the amount of iron and contaminants.

Aluminium Recycling Business Plan

The strategy for recycling aluminium is straightforward. You, like any other recycling firm, must provide some fundamental services. Here’s a rundown of what you’ll need to get started recycling aluminium.

  • Recycling space, infrastructure, and machinery are all resources.
  • Waste aluminium is used as input material.
  • Machines, equipment, and gadgets from the modern era.
  • Manpower and expertise.
  • Funding requirements.
  • The time it takes to get the first return.
  • Other relevant considerations.
  • Investment return.

These are just a few of the most crucial things to think about when launching an aluminium recycling company.

How Much Space Is Needed To Start Aluminium Recycling Plant In India?

Recycling aluminium does not take up a lot of room. An aluminium recycling facility can be run in as little as 100 square feet. You can start your recycling plant even at home if you have the space in the open after getting permission from the relevant authorities. Renting the area or using your land might be a preferable alternative. If you have more space available with you, you can even start aluminium extrusion plant and make huge profits. 

Set Up Of Aluminium Recycling Plant In India

A well-ventilated room in which to install your recycling machine and have all of the necessary safety features, as well as power, ventilation, tech support, and other equipment. Aside from that, it required a large room to store your recycled goods and rubbish that needs to be recycled. Make sure there is no congestion, which could lead to an accident.

Utilities Required:

A good power connection is always available, as a power outage could stymie your business’s output. Also, enough clean water for your recycling is available. Cleaning discarded aluminium cans necessitates a substantial amount of water. As you see, usage is relatively high. It would help if you had special clearance from the water authorities.

Raw Material Needs:

Waste Aluminum is used as input material. The most significant thing is aluminium scrap, which will be recycled and sold as a product. You need to partner up with local scrap pickers who also pick aluminium cans, which sell for a lot more money than other wastes like paper or plastic. If your demand is large, you can contact scrap dealers near the dumping ground who can supply you with tones of aluminium can debris to meet your needs. 

Machinery And Equipments Needed To Start Aluminium Plant In India

Modern Machinery, Equipment and Tech Gadgets for Aluminium Recycling: If you want to recycle old aluminium cans into only an aluminium sheet, you only need a few tools and equipment; however, if you want to recycle fresh cans, you need a few more. Here are some of the necessary machines and equipment. You can even arrange machinery to recycle, electronic e-waste and make good money as it is a highly profitable start-up. Electronic E-Waste Recycling Business project report has all required information for your use. 

Baler Compressor: is a hydraulic machine that compresses aluminium cans that take up a lot of space, and this compresses the cans into a square-shaped, thick, and heavy solid made up of thousands of cans. Simple to recycle.

Smelter: is a device that melts aluminium to remove it and separates the pure aluminium from the dross, an undesired waste product associated with aluminium cans.

Furnace: The aluminium is heated in a furnace at a temperature of 800 degrees Celsius.

Sheet Maker: After the metal is heated, it is shaped according to specifications. Because aluminium is a pliable metal, it is usually drawn into sheets. Large rolls of sheets are used to make the sheets.

Aluminum Can Shaping Machines: Many additional machines are necessary to shape aluminium cans, polish them, print the sticker around the can, clean them to fill the items, and so on.

Other Equipment: You’ll need a power generator, a heater to provide heat to melt aluminium, a container, coolant, and a boiler, among other things.

How Much Money Do I Need To Start Aluminium Recycling Business In India?

The amount of capital invested is determined by the number of resources, expertise, people, technological devices, machinery, and other miscellaneous items required. The cost of space for a recycling facility, infrastructure, and utilities can be calculated based on their location.

The second necessity is for machinery, which can be hired or purchased. Balers, for example, are sold at a reasonable cost and can even be developed. It is also available to rent; however, it is preferable to buy. Melting machines, sheet-making machines, and other important machines should be purchased or hired in the same way. If you are interested in purchasing such equipment, they would cost between Rs 2 and Rs 15 lakhs. It will also depend on how much of the material you plan to recycle. The entire equipment for creating recycled cans will cost you between Rs 30 lakhs and Rs 1 crore at the very least.

The remaining investment will go into securing expertise, technicians, and labour. You can figure out their pay monthly. The next step would be to package the recovered product and bring it to market, which may cost anywhere between Rs 2 and 5 lakhs per month.

Target Market

What you’re selling will establish your target market. Your profit margins and market share will be influenced whether you offer melted solid aluminums or recycled polished aluminium sheets. Selling strong and durable aluminium cans for keeping food and beverages will yield the best results. However, you’ll need a conventional and complex recycling system, as well as production, which will require additional investment. Network with people in the industry to better understand your market and then collaborate with them. Begin with small production and grow your business based on the results.

How Much Time Is Needed To Set Up Aluminium Recycling Plant In India?

From the first day of commencing to the result of receiving returns, an expected duration of 6-12 months will be required. Be patient in your business because it is a time-consuming process, particularly in terms of returns.

Licenses Needed To Start Aluminium Recycling Plant In India

To start your recycling firm, you also need some approvals like:

  • Approval from the environment authority,
  • The recycling authority approval.
  • Approval from the local municipality and the industrial authorities.
  • Also, register your company.
  • Register for GST tax, Water, transportation, packaging, and power taxes, among other things. 

Profit Margin

Recycled aluminium sells for a high price when compared to garbage cans and other aluminium debris. Aluminum sheets are highly expensive, but you may make a significant profit if sold in large quantities. The price of aluminium sheets ranges from Rs 250 to Rs 3000, depending on the grade. Aluminium can cost between Rs 2 and Rs 5 depending on the grade.

If you sell at least 10,000 cans each day, your daily earnings will vary between Rs 25,000 and Rs 35,000. Overall, the recycled end product will decide the return, plus the selling market plus total production plus total time invested. Your net profit will be after deducting investments in different needs such as packaging, taxes, and shipping.

Contents Of Aluminium Scrap Recycling Plant Project Report 
Sr. No.Particulars
1Purpose of the Document
2Project at A Glance
3Recycling Process Chart
5Application of Products
6Types of Aluminium Scrap
7Aluminium Extrusion
8Taint Tabor
9Used Beverage Cans UBC
12Irony Tense
13Plant & Machinery Chart
14Process Flow Chart
15Project Infrastructure
16Land and Building
18Power and Fuel
19Bank Term Loan and Working Capital
21Licences and Registrations
22Implementation Schedule
23Cash Flow Statement
24Projected Balance Sheet
25Projected Profitability Statement
26Computation of Manufacturing
27Closing Stock
28Computation of Working Capital
29Breakup of Labour
30Breakup of Salary
31Computation of Depreciation
32Repayment Schedule of Term Loan
33Calculation of D.S.C.R.
34Computation of Sale
36Break Even Point Analysis
37Financial Indicators / Ratio Analysis
Sample Project report format of recycling aluminium business

In our project report format, we cover technology details, its diagrams, flow chart etc. as and when required or deemed fit to include. Also, we can help you prepare in-depth financial calculations which is necessary for the Investor/bank.

You will get the project report data in PDF or MS word which you can use easily. You can also modify the information according to your need. You will be able to access the data easily according to the your requirement. Additionally you can easily convert the data to PDF format.

For whom is recycled aluminium plant detailed project report useful?
  1. CA Chartered Accountants
  2. Tax Consultants
  3. Small Business Owners
  4. Students
  5. Engineers
  6. Who want to self study 

In addition to those who want to prepare project reports themselves.

frequently asked questions on aluminium recycling plant project report pdf
How is aluminium recycled?

Aluminum recycling is a process that involves converting scrap aluminum into new aluminum products. It is an environmentally sustainable practice that helps conserve natural resources and reduces energy consumption compared to the production of aluminum from raw materials. Here is a general overview of the aluminum recycling process: Collection: Aluminum is collected from various sources such as used beverage cans, automotive parts, household items, construction materials, and industrial scrap. Collection methods include curbside recycling programs, drop-off centers, and commercial collection from businesses. Sorting: The collected aluminum is sorted to separate different types and grades of aluminum alloys. This sorting process may involve manual sorting, magnets, and eddy current separators to separate aluminum from other materials. Shredding: The sorted aluminum is mechanically shredded into small pieces or chips. This increases the surface area and facilitates further processing. Melting: The shredded aluminum is then melted in a furnace at high temperatures. The melting point of aluminum is relatively low (660 degrees Celsius or 1220 degrees Fahrenheit), making it energy-efficient to melt and recycle. Purification: To remove impurities, the molten aluminum is purified. This is often done through a process called fluxing, where chemicals are added to the molten metal to remove unwanted elements or compounds. Casting or Forming: Once purified, the molten aluminum is cast into different forms, such as ingots, billets, or sheets. These forms can be used as raw materials for various manufacturing processes. Rolling or Extrusion: The cast aluminum is further processed through rolling mills or extrusion machines to produce sheets, plates, bars, rods, wires, or other desired shapes. This step may involve heating and shaping the aluminum to achieve the desired properties. Manufacturing: The recycled aluminum products are then used in various industries to manufacture new products. These can include beverage cans, automobile parts, building materials, electrical components, and more.

Why is it important to recycle aluminium?

Recycling aluminum is important for several reasons: Conservation of natural resources: Aluminum is derived from bauxite ore, which is a non-renewable resource. By recycling aluminum, we can reduce the need for extracting and refining new bauxite, conserving valuable natural resources. Energy savings: The production of aluminum from raw materials requires a significant amount of energy. Recycling aluminum consumes only about 5% of the energy required for primary production. By recycling, we can conserve energy and reduce greenhouse gas emissions associated with the extraction and refining processes. Reduction of landfill waste: Aluminum is highly recyclable and does not degrade during the recycling process. When aluminum ends up in landfills, it takes a long time to break down and occupies valuable space. By recycling aluminum, we can divert it from landfills and reduce waste. Economic benefits: Aluminum recycling contributes to the economy by creating job opportunities in recycling facilities, collection systems, and manufacturing industries that use recycled aluminum. It also reduces the reliance on imported aluminum, promoting local production and reducing trade deficits. Environmental impact: The production of aluminum from raw materials generates greenhouse gas emissions and contributes to air and water pollution. Recycling aluminum significantly reduces these environmental impacts by minimizing the need for mining, refining, and transportation. Promoting a circular economy: Recycling aluminum is a key aspect of a circular economy, where materials are continuously reused and recycled rather than discarded after a single use. By participating in aluminum recycling, we can contribute to a more sustainable and resource-efficient society.

How do I start an aluminum recycling plant in India?

Starting an aluminum recycling plant in India involves several steps and considerations. Here is a general guide to help you get started: Research and Planning: Conduct market research to assess the demand for recycled aluminum in your target area. Evaluate the competition and identify potential customers such as manufacturers, construction companies, or scrap dealers. Determine the scale of your recycling plant, considering factors such as available space, investment capital, and processing capacity. Business Plan: Develop a comprehensive business plan that outlines your objectives, target market, financial projections, and operational strategies. Include information on the required permits, licenses, and regulatory compliance specific to the recycling industry in India. Determine the sources of your aluminum feedstock (e.g., scrap collection centers, industries, or households) and establish partnerships or contracts for a consistent supply. Legal and Regulatory Requirements: Register your business entity with the appropriate authorities, such as the Registrar of Companies, to establish your legal presence. Obtain the necessary licenses and permits required to operate an aluminum recycling plant. These may include environmental clearances, waste management authorizations, and pollution control certificates. Comply with local labor laws and regulations regarding employment, safety, and social security. Infrastructure and Equipment: Identify a suitable location for your recycling plant with sufficient space for storage, processing, and administrative activities. Set up the required infrastructure, including sorting and processing areas, shredders, furnaces, casting machines, and material handling equipment. Ensure that the facility meets safety standards and provides a comfortable working environment for employees. Financial Considerations: Assess the initial investment required for infrastructure setup, equipment purchase or lease, and working capital for operational expenses. Explore financing options, such as bank loans, government subsidies, or private investors. Develop a financial projection for the business, including revenue streams, operating costs, and return on investment. Operations and Quality Control: Develop efficient processes for aluminum collection, sorting, melting, purification, and forming. Implement quality control measures to ensure that the recycled aluminum meets the required specifications and standards. Establish systems for inventory management, record-keeping, and documentation. Marketing and Sales: Create a marketing strategy to promote your recycled aluminum products to potential customers. Highlight the environmental and economic benefits of using recycled aluminum in your marketing materials. Build relationships with manufacturers, construction companies, and other potential clients to secure contracts or long-term partnerships. Environmental and Social Responsibility: Implement sustainable practices in your operations, such as energy efficiency measures, waste management, and responsible disposal of by-products. Educate your employees and stakeholders about the importance of environmental conservation and the benefits of recycling. Engage in corporate social responsibility initiatives that benefit the local community and create a positive image for your business.

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