Tyre shredding business

Overview

How about we tell you that we’ve got a business opportunity for you which involves making some good bucks but not by producing or manufacturing anything rather shredding the already exiting product?

One of such businesses is “Tyre shredding business”. Did you know? That around 73,632 passenger vehicles were sold per day in India in 2018 or that the tire production volume in India stood at 192 million units in FY 2019

Infact,  the Indian automobile industry sold over 3.4 million units of passenger cars and 21 million units of two wheelers in 2021.

It’s a well known fact that over one billion tyres are produced worldwide every year and the equal number of those are removed from vehicles, becoming waste and because they are non-biodegradable in nature they need to be recycled.

The tire recycling is yet another issue which requires to be dealt with. The “pyrolysis” method of tyre recycling is a thermal degradation process which causes combustion of material and is leading to huge carbon emissions causing harmful exposure to environment and leading to health issues.

That’s where you’d come in, by taking by this tyre shredding business opportunity, helping your environment remain free of unnecessary pollution, in cusp of hazardous emissions while  making some business for yourself.

Market potential and uses

Tyre shredding is a process of shredding the tyres which are no longer required because of a degradation in their quality, in particle size while separating most of their metals.

The market potential for tyre shredding business is vast contributing to the applications which the shredded tyre provides across various sectors of the economy.

Keeping in mind the environmental constraints and the need for optimum utilisation of resources, tyre recycling has become of major importance in India, that’s because:

•  7% – waste tyres being recycled on site
• 11%- burned for fuel
• 5%- exported for processing some place else than in India
• 77%- illegally dumped, stockpiled, or sent to landfills

In fact, it was  in 2011 that India produced 90,000 metric tonnes of reclaimed rubber from tyre wastes. Further the market potential for this tyre shredding business can be elaborated on the following basis:

On the basis of tyre shredding methods used

Ambient mechanical grinding : Tyre shredders, breaking tyres into chips at an ambient temperature

Cryogenic grinding  : Grinding scrap  tyres into granules near minus 80°C using liquid nitrogen

Pyrolysis  : Thermal decomposition of scarp tyres in the absence of oxygen into synthetic Gas and char

On the basis of uses of tyre shredding

• Can be used as a replacement to coal or coke in steel mills
• As a foundation for race tracks, playground and garden beds
• Used in road beds for minimising vibration
• Increasing the burning value of of RDF(Refuse-derived-fuel)in incineration plants
• Used by Asphalt companies to make the pavement cheaper
•  Used my tyre manufacturers to make new tyres by recycling the scrap one through           shredding
• Used in civil engineering

 Process of tyre shredding

• Collection of used or worn out tyres
•  Whole tyre processing
• Mechanical system
• Cryogenic system
•  Steel liberation stage
• Screening and milling stage
• Cleaning stage

Licenses required

The licenses required to run a tyre shredding business is

• NOC by the state pollution control board
• Trade license
• GST registration
• Factory license

Investment required

The investment required to start up a tyre shredding business is ₹50 lakhs

Profits made

The profits which one is likely to earn from this tyre shredding business is ₹9 lakhs per month

Target consumers

The target consumers for the tyre shredding business is

Cement Industry: The cement industry would have an ample requirement of shredded tyres as they can be used as an alternative fuel to manufacture Portland cement, an important element in concrete.

Civil engineers: The shredded tyre is also required by the civil engineers having applications like back-fills for wall and bridge abutments, sun grade insulation for roads, landfills projects, sub grade fills and embankments etc

Asphalt industry: The asphalt industry makes use of the shredded tyres for the purpose of carpet padding, flooring materials, icky bumper, patio decks, livestock mats, side walks, rubber tiles, rail road crossing blocks etc

Steel mills: The steel mills also make use of shredded tyres as a source of carbon for the purpose of replacing coal of coke in steel manufacturing

Tyre industry: The tyre manufactures sometimes require shredded tyres for the purpose of producing recycled tyres

Construction materials: various spaces and homes can be built with whole tires by filling them with earth and covering them  with concrete

Others: The shredded tyres are also used for the purpose of constructing basketball courts and as a raw materials in manufacturing shoes

Area required

The area required for a tyre shredding business is 700-1000 sq ft

Also read :

• How to start MRF Tyres Dealership Business
• How to start Royal Enfield Franchise

Raw materials required

The raw materials required in this tyre shredding business are

• Waste tyre
• Waste plastic
• Rubber
• Oil sludge
• Heating materials: charcoal, wood, fuel oil, LPG

Machinery required

The machinery required to start up a tyre shredding business is

• Pyrolysis plant
• Electric cable jacketing
• Shredded
• Heat isolators

Manpower required

The manpower required to set this business is

• 2-skilled workers
•  3-unskilled workers

Moreover ample training in terms of the following must also be provided with

• Machine usage
• Equipment handling
• Safety and precautions

Business model and growth

The business model of a tyre shredding business can be defined using these four variants

Value proposition: The value which this business is likely to provide to you is

• Easily available raw materials
•  Multiple target consumer niches
• Low operational work

Target consumers: The target consumers for this busines are as follows

• Civil engineers
• Construction industry
• Cement industry
• Shoe industry
• Steel mills
• Asphalt industry
• Tyre industry

Competitor review: The competitors for you in this tyre shredding business are as follows

• Granutech Saturn
• Biotic waste solution
• Anjali exim
• SSJ
• Goyum shredder

Marketing strategy: The marketing strategy that can be implemented by your tyre shredding busines is

Advertising: Through billboards and hoardings

 Print media: Through blogs, articles on tire recycling

PR: Tie ups with tyre companies like MRF

Growth

The tyre shredding business has witnessed and has the potential for the following growth prospects

• The Indian tyre industry has doubled from ₹ 30,000 crores in 2010-2011 to  ₹59,500 crores in 2017-2018 increasing the tyre disposal and therefore the need for tyre shredding

Profit margin

The profit margin which this tyre shredding business is likely to yield to you is 30%-40%

Suggestions

Put them tyres into the shredders not your decision to whether or not to take up this business and here’s why

• Firstly, increased growth of automotive industry calls for more disposal of tyres which leads to tyre recycling for the purpose of emptying the landfill for constructional purposes in an environmentally acceptable manner

• Secondly, the raw materials required to set up this business are available in abundant quality and the demand for tyre shredding for the purpose of recycling from global regions is also huge

• Lastly, the tie-ups with huge automotive companies is likely to let you prosper in terms of the expansion of your business