With global concern over environmental issues, many countries have formed stringent laws on disposal of goods and take-back policies are made mandatory for companies. Disposal cost has drastically increased several times. Consumers demand more than ever for a ``green`` image of the company. The best option available for a company to come out with such pressures from the government and customers is ``green manufacturing`` or remanufacturing. It is not only economically viable but also ecologically beneficial. Remanufacturing can be implemented by adopting reverse logistics channel into the extant supply chain. In this study, the impact of the reverse channel on the profitability of the firms like manufacturer and retailer partaking in the reverse logistics.