Aluminium Can Recycling Business in 2025: Cost, Profit & Complete Setup Guide

Introduction, What is Aluminium Can Recycling?, How to Start?, How to Select the Right Place, Equipment, Staff, Materials & Cost, Licenses or Permits Required, Aluminium Can Recycling Process, Marketing Areas and Ideas, Packaging, Overall Investment, Profit in Aluminium Can Recycling Business, Risk Factors, Final Words

Introduction

Introduction

The aluminium can recycling business is one of the most profitable and eco-friendly ventures in today’s circular economy. Aluminium is 100% recyclable without losing quality, and the demand for recycled aluminium ingots is growing rapidly in packaging, automotive, and construction industries. With rising awareness of sustainability and government incentives, entrepreneurs are searching for how to start aluminium recycling plant and turn waste cans into cash. This guide covers the aluminium can recycling process, plant cost, equipment, licenses, profit margin, and risks — everything you need to start a successful business.

What is Aluminium Can Recycling?

What is Aluminium Can Recycling?

Aluminium can recycling is the process of collecting, sorting, shredding, melting, and recasting used beverage cans into new aluminium products or ingots. Recycling aluminium saves 95% of energy compared to producing aluminium from raw bauxite. Globally, billions of beverage cans are consumed every year, and setting up an aluminium recycling plant provides both financial benefits and environmental impact reduction.

How to Start Aluminium Can Recycling Business

How to Start Aluminium Can Recycling Business

Here’s a step-by-step plan:

  • Conduct market research and understand aluminium scrap price today.
  • Source aluminium can scrap from vendors, collection centers, and households.
  • Choose the right industrial area for your aluminium recycling plant setup.
  • Buy the required aluminium recycling equipment (shredder, furnace, moulds).
  • Get all licenses and pollution control permits.
  • Hire skilled operators and general labor.
  • Partner with aluminium scrap buyers and industries that use recycled aluminium ingots.
  • Promote your business as a sustainable recycling solution.

How to Select the Right Place

How to Select the Right Place

  • Select an industrial zone with reliable electricity and water supply.
  • Keep the plant away from residential areas to meet pollution control board (PCB) requirements.
  • Ensure transport access for raw scrap collection and ingot delivery.
  • Stay close to scrap aluminium suppliers and bulk aluminium buyers.

Equipment, Staff, Materials & Cost

Equipment, Staff, Materials & Cost

To set up an aluminium can recycling plant, you’ll need:

  • Shredder Machine – ₹5–8 lakh
  • Furnace (Melting Unit) – ₹10–15 lakh
  • Ingot Casting Machine – ₹4–6 lakh
  • Sorting/Conveyor Systems – ₹3–5 lakh
  • Baling/Compacting Machine – ₹3–5 lakh
  • Safety Gear & Tools – ₹50,000
  • Raw Material (scrap aluminium cans) – ₹40–60/kg
  • Staff: 1 manager, 2 operators, 3–4 workers (₹1.5–2 lakh/month for salaries).

Licenses or Permits Required

Licenses or Permits Required

Aluminium Can Recycling Process

Aluminium Can Recycling Process

  1. Collection & Sorting – Gather aluminium cans from households, shops, scrap dealers.
  2. Baling/Compacting – Compress cans for easy handling.
  3. Shredding – Break cans into smaller pieces.
  4. Melting – Heat in furnace at 660°C.
  5. Purification – Remove impurities.
  6. Casting into Ingots – Recycled aluminium turned into ingots or billets.
  7. Supply to Buyers – Industries reuse recycled aluminium for packaging, vehicles, and more.

Marketing Areas and Ideas

Marketing Areas and Ideas

  • Partner with beverage companies for bulk can collection.
  • Sell to automobile manufacturers, packaging companies, and exporters.
  • Register on B2B platforms to reach aluminium scrap buyers and ingot suppliers.
  • Promote as eco-friendly recycling business through digital marketing.
  • Offer scrap pickup services near me to households and businesses.

Packaging

Packaging

Recycled aluminium is usually supplied in the form of ingots or billets. These are packed in wooden or metal pallets for safe transport. For direct industrial buyers, simple bundling works.

Overall Investment

Overall Investment

  • Small Scale Plant: ₹30–50 lakh
  • Medium Scale Plant: ₹60 lakh–₹1 crore
  • Large Scale Unit: ₹1.5–3 crore

Profit in Aluminium Can Recycling Business

Profit in Aluminium Can Recycling Business

  • Profit Margin: 15–25%
  • A medium plant can earn ₹2–5 lakh monthly net profit.
  • Profit depends on scrap aluminium price per kg, plant efficiency, and buyer contracts.

Risk Factors

  • Fluctuating scrap aluminium prices.
  • High electricity/fuel costs for furnaces.
  • Strict compliance with PCB regulations.
  • Competition from large-scale recycling units.
  • Raw material supply inconsistencies.

Final Words

Final Words

The aluminium can recycling business is more than just a profit-making idea — it’s a sustainable opportunity that helps reduce waste, save energy, and promote a circular economy. With proper plant setup, licenses, equipment, and marketing, you can build a high-demand business that ensures long-term profitability while contributing to the environment.

FAQs on Aluminium Can Recycling

Q1. Is aluminium can recycling profitable in 2025?
Yes, with demand for recycled aluminium growing, profit margins of 15–25% make it highly profitable.

Q2. What is the cost of starting aluminium recycling plant in India?
A small-scale plant costs ₹30–50 lakh; medium-scale ₹60 lakh–₹1 crore.

Q3. How much money can you make recycling aluminium cans?
A medium unit can earn ₹2–5 lakh per month net profit.

Q4. What licenses are needed for aluminium recycling business?
You need a trade license, GST, PCB clearance, factory license, and fire safety certificate.

Q5. What is the aluminium scrap price today?
It generally ranges between ₹40–60/kg depending on purity and market demand.

Q6. How much energy does aluminium recycling save?
Recycling aluminium cans saves up to 95% energy compared to producing new aluminium.

Q7. Where can I sell aluminium cans for cash near me?
You can sell to local scrap dealers, recycling centers, or aluminium scrap buyers online.

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