Textile waste recycling business plan. A comprehensive guide


Textile exports to India have seen tremendous growth since July, which increased by 50.86% in June 2021, even after the challenges of the COVID-19 pandemic.

However, fast fashion and social media are leading people to throw away clothes after single use, which generates 5.7% of the solid waste stream.

The emerging global demand for sustainability has increased the value and need for textile waste recycling companies as a green alternative.

What is textile recycling?

The recovery of fibers, yarns or fabrics and the reprocessing of the textile material into fresh products for reuse and waste reduction is part of the textile recycling process.

Technically, all fibers can be recycled, but the current rate is only one percent, possibly because natural fibers are unfortunately more difficult to recycle than synthetics.

The donation, collection, sorting and treatment of textiles followed by transport to end users of used clothing or recovered materials are the necessary steps in this process.

The basis of the textile recycling industry is the textile industry which has emerged globally as a trillion dollar industry.

Besides reducing the consumption of fresh raw materials, it has secondary advantages such as low energy consumption, decrease in air and water pollution, etc.

Choice of textile company

Depending on how the textile waste is handled, there are three choices for the type of textile company to choose before opting for a textile company credit:

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Mechanical textile recycling company

The minimal amount of research and development required for this process makes it the simplest and most common option. To ensure profitable upcycling, choosing the right type of machine according to the absolute requirement becomes imperative.

Garnett machines would be the ideal choice for making recycled fibers for the manufacture of rags, rugs, upholstery or insulation materials.

Panipat in Haryana is home to a giant recycling center that uses such machines to make undercycled recycled products. There are very few conditions in the waste requirements and, any textile waste could be used on the machine since the purpose of these machines is to decommission the waste.

The poor quality fibers released at the exit can then be used to make coarser yarns, rags, carpets, insulation materials, fillers, etc., mixing them with other fibers.

You have to buy machines with different production capacities depending on the scale of the company. Considering a continuous supply of raw material, the amount of output that the machine can produce in fibers is expressed in kg / h.

Another factor to consider during equipment financing is the fiber quality because poor quality fibers cannot be made into finer yarn and decrease the value of reprocessed fibers.

Chemical textile recycling company

Before planning the chemical textile recycling business or exploring different textile business loans, recognize that this requires active knowledge of textile materials and chemistry. Most of the technologies suitable for this method are either in various stages of testing or under development.

The key should be to convert the fiber to the new one without downgrading the recycled product through a chemical process that would differentiate and extract the fibers from the blends.

Huge investments and partnerships from apparel giants, academic institutions etc. are essential as most of the work is based on research and development.

But you shouldn’t be overwhelmed by the numbers as there is easy credit available through facilities like Ziploan that can process your request within three days and hassle-free.

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Clothing upcycling and recycling company

The clothing recovery / recycling business takes on post-consumer products to convert them by rebuilding and redesigning them into valuable products such as fashionable clothes, accessories, home decorations etc. .

Since it is feasible enough to be done through shops, online brands, social enterprises, cooperatives with NGOs, etc., this business is the easiest to set up and requires minimal investment costs.

A skilled workforce is essential to establish this business, as each waste is unique and an individual must be able to visualize new items from the available waste itself. Also consider investing in different sewing machines that can help you create unique products.

Hence, there must be a thorough study of the recycling market to estimate the price of the product, requirements, etc. to determine your need for a textile business loan.

The main end goal of this business is to be recognized as a sustainable and conscious brand while challenging the apparel industry.

Cost of setting up a textile business

Any planning or business idea is incomplete without considering the estimated cost and financial requirements. How much you would need up front is determined by the scale of your operations.

Along with this, calculate the cost of collecting old textiles and transporting them for sale, recycling units, the recycling plant, and wages for a minimum of five employees.

You may consider a textile commercial loan to fuel the creation of your business.

This would be the overhead of a micro recycling plant and it can be more expensive to start a plant from scratch. However, you can offset some costs by working with the local community or by applying for easy loans such as CGTMSE diagrams.

Start-up capital and working capital must be in place. The setup process can consume up to 5-10 lakh rupees in India excluding machines.

What to keep in mind when starting a business

  1. Seek technical advice from experienced professionals and active textile recyclers.
  2. Understand demand and different types of market to an above average degree.
  3. Familiarize yourself with the current prices of different textiles and identify your community’s competitors and their business practices.
  4. Look for cost-effective ways to research and perform in-depth financial planning to determine your source of working capital. This can come from personal savings, asset conversion or loans to textile companies you can easily benefit from ZipLoan with no prepayment fees and no basic eligibility criteria.
  5. Identify and locate your buyers to scale quickly by indicating how to reach them.
  6. Plan for a profitable source of supply, consider available programs such as CGTMSE and how you will transport raw materials to your factory.
  7. Maintain healthy and regular accounts to stay afloat and track your cash flow, EMI on your textile commercial loan if you have any, and the expenses for each period.

Keep up to date with the latest market trends, government regulations, recycled fabric prices, new methods of equipment financing and environmental developments.

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Textile waste recycling – FAQ

How can textiles be recycled?

How are specific textiles recycled? Here are a few examples: Soft toys and pillows become car seat fillings and automotive insulators. T-shirts, sheets, towels and clothing become wiping rags.

How much textile waste is recycled?

15.6% of clothes and shoes discarded in the United States end up being recycled, while India throws away an average of 37 kg of clothing each year. 12% of the materials used for clothing end up being recycled.

What is textile waste recycling?

Textile recycling is the process of recovering fibers, yarns or fabrics and reprocessing the textile materials into useful products. Textile waste comes from different sources, then is sorted and processed according to its condition, composition and resale value.

Why is textile recycling important

Every piece of clothing you wear has gone through a complex manufacturing process that uses a large amount of electricity, water, and other energy sources. Recycling clothing saves energy by reducing or eliminating the need to make materials from scratch.

Where does textile waste go?

Their lot is not so pretty. Globally, 80% of discarded textiles go to landfill or incineration. Only 20% is actually reused or recycled. Clothing that ends up in landfills can stay there for over 200 years and, as it decomposes, emits methane, a greenhouse gas that is more potent than carbon.

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