Metal Scrap is India’s one of the most profitable businesses. Scrap Vehicle Business has gained traction after the “New Vehicle Scrappage Policy” was approved by the government of India. This policy has various lucrative perks for both – Scrap Vehicle Business Owners and Individual Vehicle Owners. A benefit of Vehicle Scrapping in India is that one requires minimal investment. In these difficult economic times, what else can one ask for!
Modern India demands advanced solutions for everything. Vehicle Scrapping in India now will do the same. It is rightly said – Being a good entrepreneur does not only revolve around making money but also having a positive impact in this environmentally woke world. Now, Scrap Car Buyers will significantly contribute to metal recycling while making a positive environmental impact. It sounds like a win-win situation, right!
“Hit while the iron is still hot” is a perfect example of describing the Scrap Vehicle business in India at present. Having said that, we want to shed more light on this topic. Let’s get started!
Answers to Your Questions – What is Scrap Vehicle Business All About?
What else could be better than having your queries resolved! Below is a list of some intriguing questions that would have already been popping into your head. Well, get ready to bid goodbye to the doubts in 3,2,1…
Q: What does Scrap Vehicle Business mean?
A: Typically, the term “Scrap” in the Industrial sector is used to describe metal goods and other materials that can’t be repurposed. If we talk about scrap vehicles in particular, then commercial and personal vehicles – older than 15 and 20 years respectively fall under this category. People (Scrap Car Buyers) who are involved in this business collect such means of transport and use them to obtain new raw materials.
Q: Is Vehicle Scrapping in India a profitable business?
A: As per recent research, by 2025, more than 21 million vehicles will become ELVs. These figures also indicate that demand for legitimate Scrap Car Buyers will rapidly increase. A feather to the cap is – with thorough research and minimal investment you can thrive in this business line. If you want in-depth information about how to set the right foot in the Scrap Vehicle business, the team at Scrap Yard India is always here to your aid.
Q: Do Scrap Car Buyers benefit the environment?
A: Scrap Car Buyers are not just earning money but also having a significant impact on mother nature. The End of Life Vehicles drastically pollute the environment. When destroyed in the open, it poses a threat to human life as they emit poisonous substances in the process. Legitimate scrap car buyers follow the environmental guidelines set by the government in India and make sure that irresponsible activities are eliminated.
Q: Is End of Life Vehicle Recycling / Old Car Recycling possible?
A: Yes, it is. People usually assume that if a vehicle gets old, then it won’t be of any use. Some people even try to sell it but fail to fetch a reasonable amount. You must be wondering what else to do? The answer is simple – sell it to scrap car buyers as there are plenty of options available. They not only get rid of your scrap vehicle but are also involved in End of Life Vehicle Recycling / Old Car Recycling and obtaining new raw materials. This will significantly reduce the cost of metal import in India.
Q: How to start a Scrap Vehicle Business on the right foot?
A: Scrap Yard India will be the right choice to help you understand this in detail. We have experienced experts who will solve all your queries in the most professional manner. However, dive in here to get a gist of what you should be aware of before venturing into this business!
Factors to be Aware of Before Venturing into the Scrap Vehicle Business in India
Research is what you shouldn’t be missing out on. Consider it as your first stepping stone on the path of success. You should have knowledge about recognizing and sorting different kinds of metals. The ferromagnetism of metals can be determined by magnets. Also, you must know that the scrap most likely includes some key metals as listed below –
Only possessing knowledge about metals isn’t enough. There are many other aspects to take care of. Let’s know about them one by one.
1] Finding and Finalizing a Space to Operate Your Scrap Vehicle Business
You will require a space to disassemble, sort and store the scrap from vehicles and the raw materials to carry out various activities. After finalizing the space, you can set your scrap yard. A particular property can be either rented or leased. If it’s situated in a locality that is easily accessible, it would add a feather to the cap. Ensure to choose a place that can avoid theft and maintain security.
2] Figuring and Fulfilling Legal Formalities
Any license in specific is not required to start the scrap business. However, Scrap Car Buyers must abide by the set of rules laid by the legal authorities. They should consult with the Local Municipal Authorities and know of necessary permits that are needed. Taking care of licensing taxes, insurance is also crucial. The state government changes the rules and regulations timely so they can vary from state to state.
3] Learning About Products and Trade
A crucial step, to begin with, is to identify the target customers. You must also know to identify metal scrap based on its appearance, weight, origin. This will help you in determining the price of various scrap materials. Try visiting the nearby markets and learn techniques for deciding and negotiating scrap prices. Such effort will keep you a step ahead in the competitive race.
4] Arranging for Equipment and Vehicles for Day-to-day Operations
Scrap business requires vehicles that can carry huge amounts of materials from one place to another. For day-to-day operations, not one but many types of equipment will be needed for various processes. You will need to finalize dealers who can provide quality-grade equipment at an affordable price.
5] Finding Ways of Transporting Scrap
Transportation is an integral part of this business as materials will be needed to be transferred from time to time. So, arranging for vehicles is definitely vital, initially, you can choose to use rented vehicles. Later, you can make different arrangements as per your convenience and preference.
6] Finding Out Sources for Collecting Scrap Materials
Sources play an important role in many businesses, and vehicle scrapping is no exception to this. You must know of appropriate sources to get the scrap from. Depending on your requirement, you can target areas such as – factories, residential homes, or other similar places.
However, this shouldn’t be your only motive. In advance, you should decide what kind of products you want to make from the waste. Other vital things to know are listed below –
- The cost of transporting the collected scrap waste to the recycling centers (the shorter the distance, the better)
- Quantity of scrap to be purchased (thorough research is required to do this)
- Scrap Price and market demand for scrap, and so on
7] Learning Techniques to Deconstruct various Objects
Some parts of the scrap vehicle can be dismantled using standard equipment. However, in other cases, a metal saw or such a similar tool will be required. At times, some larger objects need to be sorted out into smaller components of scrap metal. In the disassembling process, tiny threats may be possibly lurking. While separating electrical products, hard plastic, metals, glass injury can be caused. Hence, before you begin with scrapping business, ensure to conduct thorough research and take precautions at every step. Safety should be your utmost priority.
8] Locating Recycling Centres Nearby
You must know of the recycling centers in the surrounding areas where you want to operate from. It will also help in reducing transportation costs. Understanding how the items should be priced to earn profits is equally important.
9] Taking Care of Caution and Arranging for Safety Equipment for Staff
Many dangers are hidden in this business, so taking precautions is extremely important. Serious accidents may occur while pressing or opening bottled-up chemicals and gases. The daily operations may be hazardous at times, considering factors like bruising and cutting because of sharp metal objects. Hence, investing in getting the best safety gear for people associated with your business is crucial to cut the risk of injury.
10] Getting a Business Partner
To go all out to venture into any business won’t be a smart choice. Starting with low investment is far better. A partnership in this situation will give better results as expanding will be much more feasible. Many experts claim that this approach is the best of all. The scrap vehicle business has become lucrative and will continue to do so in the foreseeable future. If you successfully seize the opportunity, it is actually possible to get the best returns as time passes.
An additional tip that we want to give is to focus on Promoting and Marketing your Scrapping Vehicle Business. This step is essential to ensure that you establish an evident mark of your business by letting people know about it. Seeking help from professionals will be a smart choice here.
This was just a sneak peek into the aspects that you should be aware of. To gain in-depth information about Scrap Vehicle Business in India, feel free to knock on our door. We’re always ready to help entrepreneurs like you!!
About Scrap Yard India
We are the 1st class destination for your scrap vehicle. SYI is a single stop where you can let your old car rust in peace. We know that this entire process can be daunting. Our team is here to get things done at the comfort of your home, at your convenience. You just need to provide some details and leave the entire burden of concern and hassle on our shoulders.
End of Life Vehicle Recycling / Old Car Recycling is a sign of intellectual creativity. Scrap Car Buyers contribute to recycling old items that can’t be repurposed while protecting the environment. If you’re thinking of stepping foot into this business, at present, you will undoubtedly make a desirable profit. A missing step to your entrepreneurship journey is – getting a thorough understanding and a rigid plan to start a vehicle scrapping business in India.
Our professionalism and transparency in operations have made us a go-to-name in the scrap vehicle business. We always attempt to offer only the best services to the people associated with us. Delighted Clients and Customers = Delighted Us. So, if you firmly believe that you want to venture into this business line, seek help from our experts and get to know the missing pieces.
A message from SYI’s team – Reduce, Recycle, Repeat!
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– The Blog Topic has been modified from “Things to be Aware of……” to “Factors to be Aware of……”
– Reason being: There was plagiarism in the blog topic itself.