Compostable Plastic Packaging Production Unit Setup

Disastrous outcomes are inevitable if proper action is not taken against the excessive usage of plastic materials. Traditional plastics are made of fossils. The process used for extracting and processing it from natural gas causes a significant amount of GHG emissions. To minimise the carbon footprints from these activities we need to shift from these traditional plastics to better alternative compostable plastics. A huge amount of plastic is used as packaging material and setting up Compostable Plastic Packaging Production Unit can be proved very beneficial from the business point of view as well.

What is Compostable Plastic?

Compostable Plastic is a variant of plastic that is produced in such a manner that it can be disintegrated into substances that are safe for the environment. The process involved is called composting. Composting is possible at home as well as some industries also compost such plastics on a bigger scale which is known as industrial composting. For different materials, different composting techniques are used and the time taken to complete the composting process also differs based on the material.

Considering the various benefits of using compostable plastic packaging, the government often takes necessary steps to eliminate the use of traditional plastic. Ban on such harmful plastic is implemented in various places. Some major benefits of compostable plastic packaging over traditional plastic are as follows-

• Pollution Control

Compostable plastic packaging will save the environment from the pollution caused by traditional plastics if used as an alternative. Traditional plastics are not degradable while the compostable plastic packaging materials can be composted using due composting process.

• Natural Resources

The compostable plastic packaging production unit uses raw materials that are obtained from organic renewable resources. It saves our precious natural non-renewable resources and further reduces the emissions contributing to global warming and climate change.

• Growth of Industries

The use of this new kind of plastic will also encourage their production as well as composting. It will provide opportunities for young entrepreneurs to set up compostable plastic packaging manufacturing plants and disposal facilities.

• Employment Opportunities

New industries will also require the workforce and hence it will be responsible for the growth of employment opportunities.

To set up the compostable plastic packaging production plant you need to have some resources including land, financial investment, machinery, workforce etc. The major machinery that a compostable plastic packaging manufacturing plant requires, are as follows-

• Material Processor
• Rolling Machine
• Cutting Machine
• Sealing Machine

Automatic machines are available in the market that can perform all tasks by themselves. They include the roller, cutter and sealer in single equipment. The process goes like this-

• The raw material goes through the processor.
• It gets rolled by the roller which makes a thin sheet.
• These sheets are cut according to the size and shape of the packaging you wish to produce.
• Then the sealing machine seals the open ends and finally gives it the shape of a bag or other packaging material.

You need the following documents to set up a compostable plastic packaging manufacturing unit-

Business and Personal Details

• Identity Cards of the Owner or Responsible Person
• PAN Card of the Responsible Person
• PAN Card of the Business Entity
• CIN (in the case of the company)
• GST Registration
• Udyog Aadhaar (for MSME)
• DIC Registration (for small industries)
• Proof of Ownership or Possession of Land

Licences and NOCs

• Factory Licence
• Trade Licence
• Fire NOC
• Municipality NOC
• Consents from SPCB

Other Documents

• EPR Registration from CPCB
• Indian Standard Certification IS/ISO 17088
• EPR Certificates from Recyclers and Disposal Facilities

The process to set up the compostable plastic packaging production unit includes various stages. It should start with the search for the perfect location, resource collection, documentation and finally the operations. These steps are given below-

The Location for Plastic Packaging Plant

The location of the production unit should be selected after due consideration as it will be crucial for many other factors. It should be where human resource is easily available. It should also be close to your target consumers to facilitate transportation. Transportation and logistics should also be considered when deciding the location for your business.

Machinery for Compostable Plastic Packaging

The machinery should be acquired from the sellers. It should be selected according to your requirement. After this, human resources should be hired for the operations. But before starting the operations you must have all the requisite documents and permits.

Obtain IS/ISO 17088 Certification

The product should conform to Indian Standards unless the raw material is acquired from an ISO-certified manufacturer. It is required to obtain other documents and permits for the compostable plastic packaging manufacturing unit. This certifies whether the material used is actually compostable or not.

Documentation for Plastic Packaging Production Unit

You should possess all the above-mentioned documents and if you lack any document, the process to obtain the same shall be initiated without further delay. The following steps should be taken to acquire the documents related to the compostable plastic packaging production unit registration-

• Get your documents ready and register the company with the Registrar and obtain CIN (Corporate Identification Number).
• Get GST registration for your company online from the GST Portal.
• If you are establishing the business on a small scale, you can register it under MSME and claim the benefits available for new businesses under the scheme.
• You can either get land on rent or purchase it. In either case, you must have a proof of possession. This document will define the business address.
• You must acquire a factory licence, trade licence, NOC from Fire Department, Municipality and consents from the State Pollution Control Board regarding the establishment and operation.
• The Plastic Waste Management Rules prevent anyone from managing plastic waste without EPR Registration on the EPR Portal managed by the Central Pollution Control Board. It is also known as EPR Authorisation for Plastic Waste.

Operations of Compostable Plastic Packaging Production Plant

You can at this stage start the operations of your factory but you need to follow the compliances prescribed by various legislations. These guidelines include the SOPs of the Central Pollution Control Board, Waste Management Rules, Factory Rules etc. While complying with the plastic waste management rules, you can produce a compostable plastic packaging production unit and distribute it to the consumers. Ensure the filing of annual returns.

Extended Producer Responsibility (EPR Liability)

The plastic waste management rules prescribe the EPR for Compostable Plastic Packaging Production Units. Under these rules, the producers of plastic packaging must dispose of the plastic waste thus produced. The producers of these compostable plastic packaging manufacturing units need to purchase EPR Certificates every year for their production value. These targets are adjusted and renewed every year.

Ensure the Composting of this Plastic Packaging

Setting up plastic packaging will not be the complete solution but the stakeholders should also ensure the environmentally safe and sound treatment of the compostable waste separately. It should not be mixed with non-compostable waste. The plastic should be separated from the waste and segregated into different types and accordingly recycled or disposed of using composting techniques.

The costs of the machinery to set up a compostable plastic packaging production plant vary from five to fifteen lakhs depending on the efficiency. You may need to set up multiple machines to boost productivity. In addition to that you have other expenses including the wages to the labourers, factory maintenance costs, utility bills, raw materials, rent for the land etc. It may cost approximately fifty lakh rupees to start the compostable plastic packaging production unit. You also need to ensure the renewal of related documents before their expiry.

When it comes to running a business and ensuring its growth, it is crucial to not only focus on infrastructure and capital but also on complying with the rules and regulations of the country. Non-compliance can lead to legal issues that can negatively impact your business. That is where Corpseed can assist you. With our years of experience and in-depth knowledge of Business Laws and Plastic Waste Management Rules, our dedicated team at Corpseed understands the complexities involved in the setup process of a compostable plastic packaging production unit. We provide comprehensive assistance to our clients, conducting thorough desk-based research, handling documentation, and facilitating coordination to ensure compliance with the waste management rules in India. Corpseed is your all-in-one solution for meeting your business needs.