Entrepreneurs set up tyre recycling plants to turn end-of-life truck, bus, car and two-wheeler tyres into chips, granules, crumb rubber and reclaimed rubber. Buyers include tyre makers who need EPR certificates, road contractors, rubber goods makers and cement plants. A tyre recycling plant consultant helps you choose between a plain crumb line and a reclaim or cryogenic setup, then prepares the numbers a bank will read. NPCS has done this since 1994.
Tyre Recycling Plant at a Glance
| Typical capacity | ~10–100 TPD |
|---|---|
| Land | ~1–5 acres |
| Power load | ~300 kW–2 MW |
| Water | Low, cooling |
| Manpower | ~20–80 |
| Indicative investment | ~₹2–10 crore (crumb line) to ₹15–40 crore (with reclaim or cryogenic) |
Investment basis: excludes land.
Figures are indicative ranges. Your project report works them out for your capacity and location.
Market Demand for Tyre Recycling Plants in India
Demand for recycled tyre products comes mainly from waste-tyre EPR targets, road construction and the circular-economy commitments of tyre makers. Crumb rubber modified bitumen is used in roads, while reclaimed rubber goes back into tyres, footwear and belts. Units are concentrated in Gujarat, Maharashtra, Tamil Nadu, Uttar Pradesh, Punjab and Karnataka. Seasonality is low, and export potential for reclaim and crumb is medium.
- Tyre makers buying EPR certificates
- Road contractors using modified bitumen
- Rubber goods makers and flooring producers
- Reclaim buyers in footwear and belts
- Cement plants using tyre-derived fuel
Tyre Recycling Plant Products You Can Make
A crumb line suits you if you want lower capital and sales to road contractors or flooring makers. Reclaimed rubber needs a devulcaniser and buyer approvals, but it opens tyre and footwear customers. Steel wire and fibre add smaller side revenue.
- Tyre-derived fuel chips
- Rubber granules
- Crumb rubber powder (various mesh)
- Reclaimed rubber (whole tyre, butyl, EPDM)
- Steel wire
- Textile fibre
Tyre Recycling Plant Process Explained
The tyre recycling plant process starts with removing bead wire, then shredding tyres into chips and granulating them. Magnets pull out steel, and separators remove textile fibre. Fine grinding then produces powder, either by ambient or cryogenic methods, and screens sort it by mesh size. Cryogenic grinding gives finer powder at higher cost.
For reclaim, crumb is mixed with agents, devulcanised, refined and sheeted. Quality checks cover particle size, residual steel and fibre, moisture and ash. Reclaim is tested for Mooney viscosity and tensile strength, and crumb for bitumen follows IRC/IS specifications.
- Collection
- Bead-wire removal
- Primary shredding
- Granulation
- Magnetic steel separation
- Fibre separation
- Fine grinding (ambient or cryogenic)
- Screening
- Bagging; reclaim: crumb + agents
- Devulcanisation
- Refining
- Sheeting
Raw Materials and Machinery for a Tyre Recycling Plant
Your main input is end-of-life tyres, plus process oils and reclaiming agents if you make reclaim. You can source from tyre dealers, retreaders, fleet operators, scrap aggregators and tyre makers' EPR channels. Waste-tyre imports are restricted. The machines that decide output and quality are the primary shredder, granulator, separators and cracker mill.
- Bead-wire puller
- Tyre cutter
- Primary shredder
- Granulator
- Magnetic and fibre separators
- Cracker mill/pulveriser
- Screens
- Devulcaniser
- Refiner mill
Licences and Approvals for a Tyre Recycling Plant
Start with business registration and site selection, then apply for consent to establish from the State Pollution Control Board before construction. Mechanical crumbing is generally Green or Orange depending on dust control and DG use, while devulcanising is generally Orange. Before operations, plan for the factory licence, fire NOC and consent to operate.
- CPCB EPR portal registration as a waste-tyre recycler
- Hazardous waste authorisation
- Fire NOC for tyre storage
| Pollution category | Mechanical crumbing (shredding, grinding) is generally Green or Orange depending on dust control and DG use; devulcanising for reclaim is generally Orange |
|---|---|
| HSN code | 4004 (rubber waste, scrap and granules incl. crumb); 4003 (reclaimed rubber) |
| GST | Reclaimed rubber: 5%; crumb rubber and rubber waste: 18% |
| BIS / quality control order | No QCO; IRC/IS specifications for crumb rubber used in bitumen |
| Other licences | Registration as waste-tyre recycler on the CPCB EPR portal (waste-tyre EPR under the Hazardous and Other Wastes Rules) to issue EPR certificates; hazardous waste authorisation; factory licence; fire NOC for tyre storage |
Securing Tyre Supply for Your Plant
Collection logistics often decide whether a tyre recycling plant stays profitable. Build supply from several channels: tyre dealers and retreaders, fleet operators, scrap aggregators and tyre makers' EPR channels. Since waste-tyre imports are restricted, local contracts matter. Collection cost and informal competition can squeeze margins, so locate the plant close to dense tyre sources and plan covered, fire-safe storage.
Choosing the Right Tyre Recycling Plant Size
Indicative capacity runs from ~10 to 100 TPD, and investment moves from ~₹2–10 crore for a crumb line to ₹15–40 crore with reclaim or cryogenic grinding. A smaller crumb unit limits collection pressure and capital. Larger plants need more land, power and tyre supply, so match capacity to tyres you can actually collect.
Government Schemes and Project Finance for Tyre Recycling
Revenue support comes from EPR certificates sold to tyre producers, use of crumb rubber modified bitumen in roads, and state incentives. NPCS reports are used for bank loans and government programmes such as PMEGP, MSME schemes, Mudra and NABARD-linked projects, subject to each lender's requirements. A clear project report helps lenders see your costs and EPR income assumptions.
What Decides Success in a Tyre Recycling Plant
Good operators secure tyre collection, earn steady EPR certificate revenue, hold powder quality and win buyer approvals for reclaim. They also sell steel wire to steel mills and fibre as fuel or insulation material. Plan for these risks:
- Informal competition and collection cost
- Dust and fire safety
- EPR certificate price swings
How NPCS Helps You Set Up a Tyre Recycling Plant
Our team supports the decisions that shape this project: crumb only or reclaim, ambient or cryogenic grinding, and which machinery and vendors fit your capacity. We prepare a tyre recycling plant project report, guide plant layout and process, and assist with installation and commissioning. We also help you map approvals and finance.
NPCS's published client list records 9 assignments on tyre recycling and reclaim rubber projects between 2011 and 2026 for clients in 6 states, including bankable project reports and techno-economic feasibility studies.
What Your Tyre Recycling Plant Project Report Covers
- Project introduction and BIS specifications
- Manufacturing process with flow sheet
- Market survey (demand, imports/exports, existing units)
- Personnel
- Plant and machinery with suppliers
- Land and building with layout
- Raw materials with sources and rates
- Financials (project cost, working capital, cost of production, profitability, break-even, 5–10 year cash flow, projected balance sheet, IRR/NPV/payback)
Tyre Recycling Plant: Frequently Asked Questions
What is the tyre recycling plant setup cost in India?
Indicative investment is ~₹2–10 crore for a crumb line and ₹15–40 crore with reclaim or cryogenic grinding. These figures exclude land. Your final cost depends on capacity, technology and location, which a project report works out.
Which licences and pollution category apply to a tyre recycling plant?
Mechanical crumbing is generally Green or Orange depending on dust control and DG use, and devulcanising is generally Orange. You'll also need CPCB EPR portal registration, hazardous waste authorisation, a factory licence and a fire NOC.
How much land and power does a tyre recycling plant need?
Plants typically need ~1–5 acres and a power load of ~300 kW to 2 MW, depending on capacity. Water need is low and mainly for cooling. Dust control and tyre storage space affect the layout.
How to start a tyre recycling plant business?
Begin by fixing capacity, choosing crumb or reclaim, and securing tyre supply. Then prepare a project report, apply for consent to establish, register on the CPCB EPR portal, order machinery and arrange finance.
How does NPCS help with a tyre recycling project?
NPCS prepares detailed and bankable project reports and feasibility studies, supports machinery and vendor selection, and guides plant layout and commissioning. Share your capacity and location, and our team will outline costs and approvals.