Waste Textile Fabric Recycling Project Report



The Waste Textile Fabric Recycling Project Report is useful for every individual who wishes to explore details about this business. The chartered accountants, tax consultants, students, and businessmen who wish to set up this business can get all the crucial and significant details about the textile recycling business plan.

You can use the waste textile fabric recycling project report to make wise decisions till the time you can set up your new venture. It is also helpful to avail bank loan as it is compulsory to present the project report first. You can download the project report in PDF format by making the payment and later it can be converted to Word or excel format as per your need.

People these days are moving away from quick fashion changes and demand products that are circular. Textile recycling is the latest trend that involves innovation driving significant changes in the fashion sector. A large number of clothes annually go to landfills out of which only 125 can be recycled. The remaining is recycled to make products like insulation. Fast fashion items are not in use.

Textile recycling is a process that involves the recovery of material and the reusing of old fabric from clothes. It is later reprocessed to make useful products. One can recycle 90% of the textile and it is estimated that the global textile recycling market can grow at a CAGR of 19% in upcoming years. If you as a businessman can manage to recycle 100% of textiles, then we can reduce 20% of carbon, water and waste footprints from the globe.

A study says that 82% of textile waste can be recycled and resold. Thus, it can be a great supply chain management for big and leading brands.

Waste Textile Fabric Recycling Project Report

The textile recycling business requires a well-written project report so that all the details can be included in it and explored while you are in doubt. A Roadmap is very important to be there when you are experiencing a new thing. This is a new business that you want to establish to make good profits thus a project report can help. You can get a personalized project report where you can get a business plan as per your needs. It will include the financial statements, investment details, staff hiring, land, machinery, manufacturing process and a lot more.

Big companies are ready to invest in hydrothermal and mechanical waste fabric textile recycling business so that it can enable them to cellulose from textiles to recycle it efficiently. It can be brought to use in spinning, knitting, dyeing, weaving etc. and then covering the entire fashion chain value. Textile fabric recycling is among the top textile business ideas in India.

Fabric waste recycling business involves sorting old clothes and processing used fabric, and discarded textiles so that the raw material they contain can be recovered. The by-product can be used in clothing in the form of rags, scraps or fibres. You can even resell them again to the fashion industry and they can be used as raw material by them. You can earn a very good income in this business.

Textile waste recycling business size has reached US$ 296.5 Million and is expected to reach US$ 365.3 Million in the upcoming years. It is going to witness a growth of 3.6% soon. You should henceforth download the waste textile fabric recycling business project report and set up this ever-green and profitable business venture in India.

What is the Waste Textile Fabric Recycling Business?

Textile recycling refers to the method of reprocessing and reusing fibrous waste materials, scraps, and old clothes. The most common sources of these materials are carpets, discarded clothes, tyres, furniture, footwear, and other non-durable goods like sheets and towels. Textile recycling offers economic and environmental benefits, such as preventing the use of chemical dyes, reducing water and land pollution, and minimizing dependence on virgin fibres. As a result, it finds extensive application in various end-use industries across India.

A high increase in environmental issues has an impact on the demand for recycling fabric waste to reduce waste, depletion of raw materials, and industrial discharge that comes out of textile industries and this has an impact on the market growth in the country.

Many companies are in the recycling business and non-government organizations are also undertaking plans to promote fabric waste recycling in India.

Types Of Textile Waste

Textile Waste business is of two types that depend on the origin. They are post-industrial waste and post-consumer waste. Post-consumer waste is the one that is no longer needed by the customer, and he discards it from the household. Post-industry waste is the one that is generated as a by-product of home furnishing or apparel industries. They are a pure form of waste as they are not contaminated. Textile waste is a popular business idea in Delhi.

Textile Waste Recycling Business Includes clothes, cushions, bags, pillows, bedsheets, curtains, tablecloths, shoes etc.

Benefits Of Textile Waste Recycling

It results in 20% saving of energy and water. Less pollution is caused as new fibres are not transported or purchased. The need for landfill space is reduced. Environmental load and greenhouse gas emissions are reduced too by using the resources efficiently.

This can reduce the demand for dyes. Less use of chemicals can make the environment better. Any new entrepreneur can take up this opportunity and start a new venture to earn profits. When you start a recycling business in India, it can provide nature a helping hand to preserve it and make good money too. We are going to give you a detailed guide on the waste textile fabric recycling business.

How much Space is required to start a textile recycling business in India?

You can start this business by buying your land or arranging one on lease or rent. Land on lease is enough for a clothing intake, sale or sorting. You will require a land of 1000 square feet as it is enough to start your new business.

How To Arrange Supply of Discarded Textiles?

You need to arrange waste textile drop boxed and put them in the right places near your location like neighbourhoods, markets, and schools. worship places is a good idea. Then you can start a campaign informing the residents to drop their old clothes in drop boxes.

Another way is to put textile banks on high streets or near car parking. You can advertise in local newspapers to get clothes donations. The bins can be painted in bright colours and you can mention the clothes you accept. The bins can also be placed in high-traffic areas so that you can more donations.

You can add GPS tracking on the bins and weight sensors so that you can get to know when they get overfilled.

How To Collect Waste Fabric?

An innovative way to collect the waste fabric is to start curb curb-side pick-up system that is similar to trash pickup. You can employ staff and a truck for the same. Training is required for the driver to go and pick up the clothes by hand and put them in the truck. It is then brought to your warehouse.

Another strategy that you can use is collecting clothes by visiting door to door. You can hire staff to do so. It is significant to know that wet clothes should be kept away from dry clothes and all clothes should be away from moisture as mildew can grow on wet clothes.

You can also keep drop boxes covered and protected from moisture or water contact. You can collaborate with retailers and collect their unsold stock or samples. Thus, these clothes won’t go to landfills.

Sorting Of Clothes

If you are planning to do the sorting of clothes manually then you will have to hire experienced staff for the same. The staff should be able to distinguish between the useful and varied fibres. For example, cashmere or woollen should be recognized well.

If you have a heavy bulk of clothes, then you require conveyor belts and bins as equipment to sort the new fabrics. Similar fabric and similar colour clothes can be sorted and kept in one place. When you have sorted out the stuff that can still be worn can be segmented separately and the balance needs to be separated into other categories.

One category can be the clothes that can be used in making new clothes. Another category of good quality clothes can be sent to the secondhand market for further selling. Around 45% of the clothes collected are usable and 10% can be worked again. One category of clothes can be cut down to make wiping rags and sold.

Old T-shirts can be preferred to make rags. They need to be made of absorbent fibre. The low-quality fabric can be ground to make carpets or can also be converted into fibres. The buttons and rivets are also removed from the clothes. Heavy items like blankets and coats need to be separated. You can recycle cotton and polyester too thus you can label these fabrics.

Connection with the Fashion Industry

The fashion industry is a source of textile waste in the world, and also in buying recycled textiles. If you plan to enter the textile recycling business, then the fashion industry will be your buyer source as it is the industry that uses fabric the most.

Being active in the textile recycling business means working in contact with fashion as your unit will provide raw materials to the fashion industry. You need to henceforth decide which fabric you are interested in selling. First, decide whether you want to sell which fabric type after recycling. It is a very crucial decision to start your business and needs to be taken as a first step.

Cost Estimation

You must calculate the cost of collecting old textiles and the cost of transportation that you have utilised in selling. If I talk about the cost of establishing this business, then it is mentioned here.

Financial planning is an important thing to do as the first step when you plan to do this business. How much capital do you need to arrange and from where you will arrange it? It will depend on the scale of business and the production capacity of your staff.

Here are the basic costs of this business.

Recycling Facility Rent Rs 20,000.

Pick and Drop expenses 15000 Rs.

The wages of 5 employees is Rs 13,000 per person. You also need to spend funds on tax, insurance and social security as well.

Recycling equipment can cost you Rs 1 Lakh. Utilities will require Rs 2 to 3 lakh rupees.

This business has major expenses on machines that can be recycling machines and others that we have mentioned in the Machinery section.


The textile recycling business is capital-intensive. To manage this business, you will have to incur a lot of expenses like chemicals, staff, energy, transport, cost of equipment etc. You need to have a solid financial plan and for that, you must arrange startup capital and working capital.

Identifying the Buyer

Once the old clothes are collected the next step is to get someone who can buy your clothes. It can be a textile mill, art or craft store or a shop. Remember to negotiate the price because you have also incurred the cost of collecting clothes and then transportation costs too. Also, you need to think about your profit margin and then you have to quote the price of the clothes. One-half of the clothes that are donated can be used to sell in developing countries.

Investment of Machinery

You have enough funds, or you can arrange you buy the textile recycling machines to set up your plant. For this, you have to invest in a cutting textile machine and shredding machine too that will convert the left-over textile to useable fibres. They can be used for insulation or soundproofing.

The recycling machine has a high percentage of polyethene terephthalate (PET) that can transform into clear plastic bottles. You can also buy a machine that can granulate the items. They can further be melted and used to make new polyester fibres. You need to get multiple recycling machines to set up this business. A recycling machine can process 200 kg of textiles per day. Balers can compress waste items into blocks. It is a big business opportunity that is profitable and can make you earn crores.

Re-Designing Used Clothes

It is a popular concept to redesign the used clothes. You can hire a designer who can convert used clothes into designer clothes.

Production Unit

You can even set up a factory where fabrics are opened, carded, spun to make yarns or transformed into knit fabrics. Fabrics can be compressed to be used as textile filling in mattresses. Recycled yarns are used to make luxurious blankets and new wool and it all depends on the quality of the fabrics.

Recycling Old Waste Clothes

You can start a website and add information related to the importance of waste clothes recycling and this will educate the public. It is estimated that 7% of the household trash is of clothes. Textile recycling offers economic and environmental benefits. It is a social business so you can surely start it to earn handsome money.


Marketing is the last step in this startup. Before you start your business, you have to start publicising it so that people get to know what you are entering into. Marketing your business initially will help your business get a good place in the market. For example, vendors and residents who are aware of what your business is about will give you used clothes for free and will even bring them to you at low prices. A good marketing strategy will allow you to reach to a wide range of people and you will have to invest little. You can henceforth create an eco-friendly image that can appeal to the local community to provide you with the raw material that is used in clothes. This model will turn out to be a winning formula in this business for years.

Planning For Future

Future planning involves many things. Saving profit percentages for the rainy season is a way to plan for the future. Another way is to plan for threats so that when your business is in threat then you have a backup plan to save yourself. Some threats that may arise are as follows.

  • Scarcity of raw materials
  • Drop in price of recycled fabrics
  • Government rules and regulations
  • A rise in the price of equipment
  • Environmental threats

These are the challenges that you can face from time to time. How you react to these threats will tell how your success will be. An effective and well-written plan will insulate this business from the shocks of the market and other threats. You may also switch from one fabric type to another seeing the rise in demand in the market and current price that can help you earn profits.

You also need to watch the current market trends and adapt them as they come. If you do it, then your business will help you earn more money.

Sample Project Report Format for Textile Recycling Project Report

In our project report format, we cover technology details, diagrams, flow charts etc. as and when required or deem fit to include. Also, prepare in-depth financial calculations which are necessary for the Investor/bank. 

Contents of Textile Recycling Business Project Report
Sr. No.Particulars
1Project at A Glance
2Highlights of The Project
3General Information and Location
4Promoters Background
5Project Introduction
6The Project Proposal
7Prospect for Investment
8Potential Target Customers/Market
9Marketing Strategy
10Critical Success Factors
11Process Details and Technical Aspects
12Process Flowchart
13Installed and Operational Capacity
14Raw Materials and Consumables
15Power And Manpower
16Tentative Implementation Schedule
17Basis & Presumptions
18Financial Estimates
20Power And Utility
21Computation of Working Capital Requirement
22Estimated Cost of The Project
23Production and Output
24Estimated Annual Sales Turnover
25Projected Profitability Statement
26Depreciation Schedule
27Debt Service Coverage Ratio
28Term Loan Repayment Schedule
29Projected Cash Flow Statement
30Projected Balance Sheet
31Permits and Business Licenses
32Important Steps to Start the Project
33Tips To Identify Suitable Project Location

Setting up a waste fabric textile recycling business is a smart investment that you can make to earn money. It is the best decision to start this venture and so you will require a project report that is effectively written and contains all important details. However, you have to make a substantial investment in this business so that you can make good money and gain success. With the business of textile fabric recycling, you can get information about the following industries related to textile and recycling on our website.

Frequently Asked Questions On Waste Textile Fabric Recycling Project Report

Where can I get waste fabric textile recycling sample project report for bank loan pdf?

Well, you can explore the best textile recycling business project report PDF on our website and take help by checking out all the important details for your new business from it. It will serve as a guide using which you can write your fabric recycling business project report and submit it to the bank to avail a loan for your new venture.

What is the right fabric textile recycling project report format for a bank loan?

We have clearly stated the right format for fabric recycling start-up in our project report. You can check out the project report details by downloading it after making a nominal payment to us. We have covered every important aspect of this venture in our report.

Can I download waste textile fabric recycling business project report in the format of excel or word file?

You can easily download used cloth recycling project report from our website in PDF Format and use it for writing your project report. If you want to get it in a word or Excel file. It is very simple to later convert the pdf to Word or excel using free file converting tools.

Can I download textile recycling project report and use it for bank loan under pmegp mudra and other government scheme?

The main objective of this project report is to highlight all important aspects of this business for your new set up and to provide sample format for preparing project reports for other purposes. However, according to your need, we will prepare a customized project report for your set-up so that you can get a loan from the bank under any scheme.

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