Plastic waste has become one of the most pressing environmental issues of our time. Bangladesh, like many developing countries, faces a growing challenge in managing post-consumer plastics. However, this problem has also created a profitable and sustainable business opportunity—plastic recycling and pelletizing.
The demand for recycled plastic pellets is rising steadily across the packaging, textile, furniture, and construction industries. These pellets are the raw material for manufacturing new plastic products, offering both economic gain and environmental benefit.
This article outlines the complete project profile of a Plastic Recycling and Pelletizing Plant in Bangladesh, including investment cost, production process, machinery list, and profitability analysis—all in Bangladeshi Taka (BDT).
1. Business Overview
Project Name:
Plastic Recycling and Pelletizing Plant
Business Type:
Recycling and Manufacturing Industry
Location:
Suitable for industrial zones in Dhaka, Gazipur, Narayanganj, or Chattogram where logistics and waste collection are convenient.
Project Objective:
To collect, clean, and recycle used plastic materials such as PET, HDPE, LDPE, and PP into reusable plastic pellets.
Target Market:
- Plastic furniture manufacturers
- Packaging industries
- Pipe and sheet producers
- Export buyers (India, China, Vietnam, etc.)
2. Importance of Plastic Recycling in Bangladesh
Bangladesh generates over 800,000 tons of plastic waste annually, of which nearly 50% can be recycled. With increasing restrictions on single-use plastics, recycled plastic has become a cost-effective alternative for manufacturers.
Besides that, recycled pellets reduce dependence on imported virgin plastics, saving foreign currency and contributing to circular economy goals.
3. Project Capacity and Output
| Particulars | Details |
|---|---|
| Production Capacity | 2,500 kg plastic pellets per day |
| Working Days | 300 days per year |
| Annual Production | 750,000 kg (750 tons) |
| Raw Material (Waste Plastic) | 1,000 kg input = 850 kg output |
| Daily Waste Plastic Requirement | 2,950 kg/day |
4. Raw Materials and Sources
| Raw Material Type | Source | Approx. Price (BDT/kg) |
|---|---|---|
| Mixed Waste Plastic (PET, PP, LDPE, HDPE) | Local collection centers | 25–30 |
| Water & Chemicals (for cleaning) | Local suppliers | 10 |
| Electricity & Fuel | Local grid / Diesel | As per consumption |
| Packaging Bags | Local plastic industry | 20–25 each |
Most raw materials can be sourced locally through waste collectors, municipal dumps, and plastic scrap dealers.
5. Production Process
The production process involves six major stages:
- Collection & Sorting – Waste plastics are collected, sorted by type and color.
- Cleaning & Washing – Removing dirt, oil, and labels using water and detergent.
- Drying – Removing moisture through mechanical dryers.
- Shredding – Breaking plastics into small flakes.
- Extrusion & Pelletizing – Melting and extruding flakes into pellets using an extruder.
- Cooling & Packaging – Cooling pellets and packing in 25–50 kg bags.
6. Machinery and Equipment List
| Sl | Machinery Name | Quantity | Approx. Price (BDT) |
|---|---|---|---|
| 1 | Plastic Crusher / Shredder | 1 set | 12,00,000 |
| 2 | Washing Tank with Conveyor | 1 set | 6,00,000 |
| 3 | Dryer (Centrifugal + Hot Air) | 1 set | 8,00,000 |
| 4 | Plastic Extruder (Pelletizer) | 1 set | 22,00,000 |
| 5 | Cooling Tank | 1 set | 2,50,000 |
| 6 | Pellet Cutter | 1 set | 3,00,000 |
| 7 | Water Treatment Unit | 1 set | 2,00,000 |
| 8 | Electric Control Panel | 1 set | 1,50,000 |
| 9 | Weighing and Packaging Machine | 1 set | 2,00,000 |
| 10 | Miscellaneous Tools & Installation | – | 3,00,000 |
Total Machinery Cost: ≈ ৳62,00,000 (6.2 million BDT)
7. Land and Building Requirements
| Particulars | Area (sq.ft) | Rate (BDT/sq.ft) | Total Cost (BDT) |
|---|---|---|---|
| Land (Leased 10 years) | 10,000 | 20 | 20,00,000 |
| Factory Building | 5,000 | 2,500 | 1,25,00,000 |
| Office, Store & Utilities | 1,500 | 2,000 | 30,00,000 |
| Boundary, Drainage & Misc. | – | – | 10,00,000 |
Total Civil Cost: ≈ ৳1,85,00,000 (18.5 million BDT)
8. Manpower Requirement
| Designation | No. of Employees | Monthly Salary (BDT) | Annual Salary (BDT) |
|---|---|---|---|
| Factory Manager | 1 | 70,000 | 8,40,000 |
| Technician / Operator | 4 | 30,000 | 14,40,000 |
| Helpers / Laborers | 8 | 18,000 | 17,28,000 |
| Accountant / Admin | 1 | 35,000 | 4,20,000 |
| Supervisor | 1 | 25,000 | 3,00,000 |
| Security / Cleaner | 2 | 15,000 | 3,60,000 |
Total Annual Salary: ≈ ৳50,88,000 (5.1 million BDT)
9. Utility and Overhead Expenses
| Particulars | Monthly (BDT) | Annual (BDT) |
|---|---|---|
| Electricity | 2,00,000 | 24,00,000 |
| Water | 20,000 | 2,40,000 |
| Maintenance | 50,000 | 6,00,000 |
| Office & Admin | 50,000 | 6,00,000 |
| Transportation | 1,00,000 | 12,00,000 |
| Miscellaneous | 30,000 | 3,60,000 |
Total Annual Utilities: ≈ ৳54,00,000 (5.4 million BDT)
10. Project Cost Summary
| Category | Amount (BDT) |
|---|---|
| Land & Building | 1,85,00,000 |
| Machinery & Equipment | 62,00,000 |
| Installation & Testing | 8,00,000 |
| Furniture & Fixtures | 5,00,000 |
| Pre-Operating Expenses | 10,00,000 |
| Working Capital (3 months) | 60,00,000 |
| Total Project Cost | ৳3,30,00,000 (33 million BDT) |
11. Financial Analysis
Estimated Production and Sales
| Particulars | Quantity (Kg) | Selling Price (BDT/kg) | Total (BDT) |
|---|---|---|---|
| Recycled Plastic Pellets | 7,50,000 | 85 | 6,37,50,000 |
Annual Raw Material Cost
| Material | Quantity (Kg) | Rate (BDT/kg) | Total (BDT) |
|---|---|---|---|
| Waste Plastic | 8,85,000 | 28 | 2,47,80,000 |
| Chemicals & Utilities | – | – | 25,00,000 |
Total Raw Material Cost: ≈ ৳2,72,80,000
Operating Cost Summary
| Particulars | Amount (BDT/year) |
|---|---|
| Raw Materials | 2,72,80,000 |
| Labor & Staff | 50,88,000 |
| Utilities | 54,00,000 |
| Maintenance | 6,00,000 |
| Admin & Others | 6,00,000 |
| Total Operating Cost | ৳3,89,68,000 |
Gross and Net Profit
| Description | Amount (BDT) |
|---|---|
| Annual Sales Revenue | 6,37,50,000 |
| Operating Cost | 3,89,68,000 |
| Gross Profit | 2,47,82,000 |
| Interest & Depreciation | 60,00,000 |
| Net Profit (Before Tax) | ৳1,87,82,000 |
| Net Profit Margin | ≈ 29.5% |
12. Break-Even Analysis
| Particulars | Amount (BDT) |
|---|---|
| Fixed Cost | 1,10,00,000 |
| Variable Cost Ratio | 61% |
| Break-Even Sales | 1,10,00,000 / (1 – 0.61) = 2,82,05,000 |
The plant reaches break-even at ৳2.82 crore annual sales, typically achievable within the first year of operation.
13. Projected Cash Flow (First 5 Years)
| Year | Sales Revenue (BDT) | Net Profit (BDT) | Cumulative Cash (BDT) |
|---|---|---|---|
| 1 | 6,37,50,000 | 1,87,82,000 | 1,87,82,000 |
| 2 | 6,69,37,500 | 2,10,00,000 | 3,97,82,000 |
| 3 | 7,02,84,000 | 2,35,00,000 | 6,32,82,000 |
| 4 | 7,37,98,000 | 2,60,00,000 | 8,92,82,000 |
| 5 | 7,74,88,000 | 2,85,00,000 | 11,77,82,000 |
14. Environmental Impact
Plastic recycling directly contributes to waste reduction, pollution control, and energy saving. Recycling 1 ton of plastic saves nearly 2,500 liters of fuel oil and prevents landfill accumulation.
Therefore, the project has strong environmental, economic, and social value in Bangladesh’s green industrial movement.
15. Government Support and Incentives
The Bangladesh government and organizations like BSCIC, BEPZA, and IDCOL encourage recycling businesses through:
- Tax exemptions for eco-friendly industries
- Low-interest industrial loans
- Export incentives for recycled raw materials
Besides that, the Department of Environment (DoE) offers registration and clearance support for recycling plants following environmental guidelines.
16. SWOT Analysis
| Strengths | Weaknesses |
|---|---|
| High demand for recycled pellets | Requires strong waste collection network |
| Local availability of raw materials | Energy consumption is high |
| Environmentally sustainable | Needs skilled technical staff |
| Opportunities | Threats |
|---|---|
| Export potential in Asia | Price fluctuation of virgin plastic |
| Growing local plastic industry | Import competition |
17. Conclusion
Setting up a Plastic Recycling and Pelletizing Plant in Bangladesh is both profitable and sustainable. With growing plastic consumption, waste management challenges, and industrial demand, this project stands as a future-proof investment.
Besides profit, it contributes to green growth, employment creation, and national resource efficiency. Entrepreneurs can start with a medium-scale setup and expand as demand grows.
18. Call to Action
If you’re planning to establish a Plastic Recycling and Pelletizing Plant, you need a bankable project profile to secure bank loans or attract investors.
✅ We, China Bangla Engineers & Consultants Ltd. (CBECL), prepare complete, bankable, and customized project profiles for industries in Bangladesh and abroad.
Our project profiles include:
- Feasibility study
- Cost and profitability analysis
- Machinery sourcing
- Bank loan documentation support
📞 Contact us today to get your Plastic Recycling Plant Project Profile or any industrial project plan tailored to your budget and goals.
Email: [email protected]
Website: www.cbecl.com
Let’s build a cleaner, greener, and more profitable Bangladesh together. 🌱