Complete Guide: How to Setup a Profitable Tyre Recycling Plant in India

India generates over 2.75 million tonnes of scrap tyres annually, making waste tyre management both an environmental priority and one of the fastest-growing industrial sectors. With strict regulatory mandates enforced by the Central Pollution Control Board (CPCB) under the Extended Producer Responsibility (EPR) framework, setting up a tyre recycling plant in India has evolved from an informal scrap trade into a highly structured, lucrative industry.

Whether you are looking to start a new tyre recycling business, expand an industrial recycling footprint, or collaborate with leading tyre recycling companies in India, this comprehensive guide covers everything from market potential, recycling technologies, and plant setup costs to CPCB EPR registration and regulatory compliance.

Tyre Recycling Industry in India: Quick Snapshot

Key Metric

Details & Benchmarks

Annual Scrap Tyre Volume

~2.75+ Million Tonnes (3rd largest globally)

Primary Recycling Methods

Crumb Rubber Granulation, Pyrolysis, Reclaiming

Key End-Products

Crumb rubber, Pyrolysis oil, Carbon black, Reclaimed rubber, Steel wire

Investment Range

₹50 Lakhs – ₹3.5+ Crores (depends on scale & technology)

EPR Obligation Target

100% mandatory recycling requirement for tyre producers

Primary Regulators

CPCB, State Pollution Control Boards (SPCBs), MoEFCC

Why Invest in the Tyre Recycling Business in India?

The tyre waste recycling market in India is driven by strong regulatory backing, rising raw material costs in manufacturing, and a national push toward a circular economy.

      [ Scrap Tyre Collection ]

                  │

                  ▼

   [ Waste Tyre Recycling Plant ]

                  │

  ┌───────────────┼───────────────┐

  ▼               ▼               ▼

[ Crumb Rubber ] [ Pyrolysis Oil ] [ Steel Wire ]

  │               │               │

  ▼               ▼               ▼

Bitumen/Roads   Industrial Fuel  Steel Mills


1. Mandatory CPCB EPR Compliance

Under Schedule IX of the Hazardous and Other Wastes (Management and Transboundary Movement) Amendment Rules, tyre manufacturers and importers must fulfill 100% EPR targets. To meet these obligations, tyre producers purchase EPR certificates directly from authorized tyre recyclers in India, creating a guaranteed, secondary revenue stream for compliant recycling plants.

2. High Demand for Derived End-Products

Products manufactured in a waste tyre recycling plant enjoy high demand across multiple sectors:

  • Crumb Rubber: Used in rubberized asphalt road construction, sports turf, playground surfacing, and molded rubber products.

  • Pyrolysis Oil (Fuel Oil): Purchased as an industrial furnace fuel by glass factories, boiler plants, and steel re-rolling mills.

  • Recovered Carbon Black (rCB): Utilized in masterbatches, paints, rubber compounding, and ink manufacturing.

  • Steel Wire: Recycled directly by steel mills and foundry units.

  • Reclaimed Rubber: Blended back into new tyre manufacturing, conveyor belts, and automotive components.

Types of Tyre Recycling Plants & Technologies

Depending on your capital expenditure (CapEx) and target market, a tyre recycling company can choose from three main plant configurations:

1. Crumb Rubber & Granulation Plant (Mechanical Shredding)

  • Process: Uses heavy-duty primary shredders, secondary granulators, magnetic separators, and fiber air-classifiers to process tyres into fine rubber granules (10 to 80 mesh) at ambient temperatures.

  • Outputs: Clean crumb rubber, steel wire, and textile fluff.

  • Best For: High eco-compliance, steady market demand for road asphalt and molded rubber goods.

2. Pyrolysis Plant (Thermal Cracking)

  • Process: Heats shredded scrap tyres in an oxygen-free reactor chamber (350°C–500°C) to break down complex polymer chains into liquid oil, gas, and solid carbon residue.

  • Outputs: Pyrolysis oil (35-45%), Carbon black (30-35%), Steel wire (10-15%), and Syngas (recycled internally for fuel).

  • Best For: Industrial fuel generation and high-yield energy recovery.

3. Reclaimed Rubber Manufacturing Plant

  • Process: Combines crumb rubber with devulcanizing chemicals, heat, and mechanical shear to restore plasticity, producing reclaimed rubber sheets.

  • Best For: Direct supply to automotive component makers and domestic tyre manufacturers.

Step-by-Step Guide to Setting Up a Tyre Recycling Plant in India

Setting up an operational tyre recycling plant in India requires strategic planning across plant design, equipment selection, and regulatory approvals.

Step 1: Conduct Feasibility & Feedstock Mapping

Assess local scrap tyre availability (from local mechanics, fleet operators, municipal transport corporations, and scrap dealers) and secure off-take agreements with buyers for crumb rubber or pyrolysis oil.

Step 2: Site Selection & Infrastructure Setup

  • Land Requirement: Minimum 5,000 sq. ft. to 15,000 sq. ft. in designated industrial areas.

  • Power & Water: High-tension (HT) electrical connection (100–200 kVA depending on shredder tonnage) and adequate industrial water supply.

  • Zoning: Must be located away from dense residential zones as mandated by SPCB norms.

Step 3: Equipment Procurement & Installation

Procure heavy-duty equipment including hydraulic bead wire removers, primary tyre shredders, granulators, vibrating screens, magnetic separators, pneumatic conveyors, dust collection systems, and pollution scrubbers.

Step 4: Regulatory Approvals & Clearances

Obtain all mandatory state and central statutory clearances before commercial commissioning.

Step 5: CPCB EPR Registration & Commercial Launch

Register on the CPCB Waste Tyre Management Portal (eprtyres.cpcb.gov.in) as a certified recycler to generate and trade EPR certificates.

Mandatory Licenses & Compliance Checklist

To run a compliant waste tyre recycling plant, you must secure the following licenses:

[ Company Registration (Pvt Ltd / LLP) ]

                 │

                 ▼

 [ Consent to Establish (CTE) - SPCB ]

                 │

                 ▼

  [ Fire NOC & Factory License ]

                 │

                 ▼

  [ Consent to Operate (CTO) - SPCB ]

                 │

                 ▼

   [ CPCB EPR Recycler Registration ]


  1. Company Incorporation & Business Registration: Private Limited, LLP, or Partnership firm with GST and MSME Udyam registration.

  2. Consent to Establish (CTE): Granted by the State Pollution Control Board (SPCB) prior to plant construction.

  3. Consent to Operate (CTO): Issued by the SPCB after site inspection, verifying installed air/water pollution control devices.

  4. CPCB EPR Recycler Authorization: Mandatory registration under the CPCB portal to issue valid EPR recycling certificates to brand owners and producers.

  5. Fire Safety NOC & Factory License: Compliance with local industrial safety, fire suppression, and labor standards.

  6. Import-Export Code (IEC): Required if importing scrap tyres or exporting processed crumb rubber/pyrolysis oil.

Estimated Investment Breakdown

Investment Category

Small-Scale (Crumb Rubber)

Mid-to-Large Scale (Pyrolysis / Advanced)

Plant Machinery & Equipment

₹25L – ₹45L

₹65L – ₹1.5 Cr+

Civil Works & Shed Construction

₹8L – ₹15L

₹35L – ₹60L

Pollution Control Equipment

₹3L – ₹8L

₹15L – ₹30L

Electrical Utilities & Setup

₹3L – ₹6L

₹10L – ₹20L

Licensing, Consultation & Registration

₹2L – ₹5L

₹4L – ₹8L

Initial Working Capital

₹8L – ₹15L

₹25L – ₹45L

Total Estimated Budget

₹50 Lakhs – ₹1 Crore

₹1.5 Crores – ₹3.5+ Crores

Prominent Tyre Recyclers and Market Players in India

The landscape of tyre recycling companies in India includes both established industrial players and emerging tech-driven recycling startups:

  • Tinna Rubber and Infrastructure Ltd: One of India's largest crumb rubber and rubberized bitumen manufacturers.

  • Gujarat Reclaim & Rubber Products Ltd (GRP Ltd): Leading manufacturer and global exporter of reclaimed rubber.

  • Taurus Petrogas & Recyclers: Specialized in tyre pyrolysis and industrial fuel extraction.

  • KSL Cleantech: Active in waste-to-energy and tyre processing setups.

How Corpseed Streamlines Your Tyre Recycling Plant Setup

Establishing a waste tyre recycling plant involves navigating complex CPCB portal registrations, state pollution board CTE/CTO approvals, and technical machinery alignment.

Working with expert regulatory advisors ensures smooth execution without costly compliance delays. You can explore complete end-to-end advisory, licensing, and turn-key consultation services at Corpseed Tyre Recycling Plant Setup Assistance.

Frequently Asked Questions (FAQs)

What is the minimum land requirement for a tyre recycling plant in India?

A basic crumb rubber plant or small pyrolysis unit requires at least 5,000 to 10,000 sq. ft. of industrial land to accommodate shredding machinery, material storage, and pollution control equipment.

Is CPCB EPR registration mandatory for tyre recyclers?

Yes. Under CPCB regulations, every tyre recycling company must register on the CPCB e-portal to legally process scrap tyres and trade EPR credits with tyre manufacturers and importers.

What are the main products obtained from tyre waste recycling?

The major end-products include crumb rubber granules, recovered carbon black, pyrolysis oil, reclaimed rubber, and scrap steel wire.

Is a tyre recycling business profitable in India?

Yes. Revenue comes from two streams: selling recycled outputs (crumb rubber, pyrolysis oil, steel) and trading CPCB EPR certificates with tyre producers. Typical payback periods range between 18 to 36 months depending on operational efficiency.

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