§1What this business is
Calcium carbide is fed into water in a generator; the acetylene gas that forms is cooled, scrubbed, dried, purified, compressed and filled into cylinders holding acetone and a porous filler. Welders, fabricators, glass works and laboratories buy it. The lime slurry left behind is dried and sold.
Capacity: Installed capacity not printed in units; sales ₹59.85 L in year 1 at 35% capacity use, rising to ₹120.23 L in year 5 at 55%.
§2Is it right for you?
Who it is for
Someone from the industrial gas, welding-supply or chemical trade who can run a plant to strict safety rules.
Who it is not for
A first-time founder without technical staff or a site that can meet fire and explosives clearances.
Advantages
- Every welding and fabrication shop needs acetylene — steady repeat buying
- Simple chemistry: calcium carbide plus water
- The lime slurry by-product also sells
- Cylinder refills give regular local orders
Drawbacks
- Acetylene is explosive — safety design and training cannot be skipped
- Needs a licence under the Gas Cylinders Rules and fire and pollution clearances
- Raw material (calcium carbide) is about half of sales value
- Cylinders are a large, slow-moving asset to manage
Skills you need
- Gas plant operation and safety
- Cylinder filling and testing
- Handling calcium carbide stock
- Selling to fabricators and welding shops
Why difficulty 4/5: Explosive gas, safety licences and a technical plant.
§3Market
Who buys
- Welding and metal fabrication shops
- Glass and materials-processing units (carbon coating)
- Laboratories (atomic absorption instruments)
- Chemical manufacturers
How it sells
- Direct cylinder supply and refills to workshops
- Industrial gas dealers
Good to know
- The report calls acetylene the only fuel gas used for welding steel.
- Dried calcium carbonate slurry sells for waste-water treatment, acid neutralising or soil conditioning.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Carbide hopper filling cart (spark-resistant, 200–1,200 kg) | — | — |
| Pneumatic (air-operated) hoists | — | — |
| Acetylene generator | — | — |
| Acetylene condenser | — | — |
| Ammonia scrubber unit | — | — |
| Low-pressure dryer | — | — |
| High-pressure dryers (three columns) | — | — |
| Acetylene purifier | — | — |
| Acetylene compressor | — | — |
| Pneumatic pumps (acetone and gas transfer) | — | — |
| Water demineralisation plant | — | — |
| Cylinder filling manifold | — | — |
| All plant and machinery (total) | — | ₹15.50 lakh |
From: PMEGP sample project report — Acetylene Gas Manufacturing Unit (prepared by Udyami/Samadhan)
- Calcium carbidemain raw material; granules fed into the generator
- Lime and cokelisted among major raw materials
- Acetonefilled into cylinders to dissolve the gas
- Chilled methanol and some natural gaseslisted among major raw materials
- Anhydrous calcium chloridedrying medium in the high-pressure dryers
From: PMEGP sample project report — Acetylene Gas Manufacturing Unit (prepared by Udyami/Samadhan)
In our raw material database
§5Licences & registration
- Udyam
- GST
- Licence to fill and store gas cylinders (Gas Cylinders Rules, 2004)
- Fire NOC
- Pollution Control Board consent
- Trade licence
- Factory licence (if worker count requires)
§6Schemes & subsidies
The report is a PMEGP sample project; at ₹20.94 L it is within the PMEGP manufacturing limit. CGTMSE can cover the collateral-free loan.
§7Money
How the investment is worked out: Plant & machinery ₹15.50 L + other misc assets ₹1.00 L + working capital ₹4.44 L = ₹20.94 L. Land and building rented (not in the cost). Finance: own ₹2.09 L, term loan ₹14.85 L, working capital loan ₹4.00 L.
Working capital: Working capital ₹4.44 L, of which ₹4.00 L is a bank working capital loan.
Year not printed on the report — check current machinery prices.
§8Export potential
Export council / board: CHEMEXCIL
- The report prints no HS code; confirm the ITC(HS) line with DGFT before exporting.
- Filled gas cylinders are rarely exported; the trade is local.
§9Risks — where people fail
- Fire or explosion
- Licence delays under the Gas Cylinders Rules
- Calcium carbide price changes
- Unpaid cylinders held by customers
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working acetylene gas plant unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam, GST), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
Associations, clusters and training institutes — the directory is being built. Connect
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Acetylene Gas Plant?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.