How to Start Used Oil Recycling Business

Oil Recycling Business

Used Oil Recycling Business is one of the Unknown Business which has a Parallel market share in Lubricant Business. In these days Engine oil is a very important factor for the Automobile industry as when the prices of petroleum products gone up, used Refine oil is necessary to be used to save the cost. According to the recent market, the survey shows that there are a huge demand and consumption of the engine oil and this shows that the Recycle of used Engine Oil Business has a great scope in the market. With Nominal Investment anyone can start to Recycle Oil Business.

Requirements & Process to Recycle the Used Oil

  • Used Engine oil.
  • Chemicals and consumables (sulphuric acid, clay, lubes, additives etc.,).
  • Settling Tanks.
  • Centrifugal pump and vacuum pump with 3HP motors.
  • Blending tank with a stirrer.
  • Electrical Heaters.
  • Lap equipment for testing.

Used engine oils are taken out from an Engine. Actually, only 20% of the oil is consumed during the lubrication process and 80% of the oil remains the same. During lubrication process in Engine, oil is contaminated with impurities of tear and wear of the Engine. To refine these, used oil is undergone for few processes like the Settling process, Acid treatment, Clay treatment and Filtration process.

Firstly in the Settling process oil is left to settle for 6 hours. The upper layer of the oil is pumped to other tanks for the Acid treatment.

In acid treatment, 98% of sulphuric acid is added and stirred for a while with the help of agitators and settled for 7 hours to settle down sludge. Then the upper layer of the oil is sent to the clay treatment

In Clay treatment, the activated clay is added to the oil and heated up to 200c. The oil starts vaporized and these vapours are condensed in a condenser.

Then finally oil went to the filtration process by adding additives. By adding some additives improves the quality of the oil. Sometimes we need to mix 4% to 5% pure lubricating oil as an additive.

Investment Details to Start Recycle Oil Business

  • Raw Materials                               – 1,00,000 INR
  • Machinery                                      – 3,50,000 INR
  • Rent space (Power + Workers)  – 1,00,000 INR
  • Malicious                                        –     50,000 INR
  • Working capital                             –  1,00,000 INR
  • Permissions & Certificates          –  1,00,000 INR

Total = 7, 00,000 INR

This is the Minimum Investment to start to recycle oil business in a budget. Reduce the Investment as much as possible.

Requirements for Recycling Oil Business

  • Permission from Local Municipal Office.
  • Trade License.
  • API Certificate for Quality of Oil.
  • Pollution Certificate.
  • 2kv Power connection
  • GST Registration


Marketing Plays an important role in this business. A Planned and Strategic Marketing Plan required before going starting Oil Recycled Business.

  • Identify the correct market, where supply meets demands.
  • Advertise in the Local Market and start a campaign in petrol pumps and movie theatres.
  • Offer a Great Margin to the Local service center dealers.
  • Collaborate with existing Engine Oil Distributors by giving attractive price list.
  • Hire a Marketing Team. (If there are no budget constraints)
  • Maintain Good Contacts with all local dealers and distributors.
  • Collect the used oil from workshops by giving incentives.

This is all about Used Oil Recycle Business with all the details like processing, investment and marketing. Hope, this article gives you the idea about the recycled engine oil business

4 thoughts on “How to Start Used Oil Recycling Business”

  1. You have discussed an interesting topic that everybody should know. Very well explained with examples.

  2. Waste oil recycling helps save natural resources and many industries are reusing the waste oil to save the cost. Thanks for sharing the wonderful information.


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