§1What this business is
Linear alkyl benzene (LAB) is reacted with a sulphonating agent — 20% oleum, 98% sulphuric acid or a mix — in a jacketed, stirred sulphonator kept cool by a chilling plant, then settled. The report gives 700–750 kg LAB and 800–900 kg of 20% oleum (or 1,100–1,200 kg of 98% sulphuric acid) per tonne of 85–88% acid slurry, made to IS 8401:1987. Buyers are detergent powder and cake makers, most of them small units.
Capacity: 150 tonnes a year (½ tonne a day, one shift) worth ₹75.00 L at ₹50,000 a tonne.
§2Is it right for you?
Who it is for
A chemist or someone from the detergent trade who already knows powder and cake makers.
Who it is not for
Someone without chemical-safety training or a site away from homes.
Advantages
- Every detergent powder and cake maker needs acid slurry
- Simple batch process with few machines
- The report shows a low break-even of 31.5%
Drawbacks
- Oleum and sulphuric acid are dangerous to store and handle
- LAB price follows crude oil and moves the margin
- Large plants make acid slurry in bulk at lower cost
Skills you need
- Safe handling of oleum and acids
- Temperature control during sulphonation
- Lab tests for active matter, free oil and free acid
Why difficulty 3/5: Simple plant, but hazardous acids need trained handling.
§3Market
Who buys
- Detergent powder and cake makers
- Liquid detergent and cleaner makers
How it sells
- Direct sale in drums to detergent units
- Chemical traders and distributors
Good to know
- The report notes that the bulk of detergent production is in the small-scale sector.
- It values acid slurry at ₹50,000 a tonne.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Stainless-steel sulphonator, jacketed with agitator, 1 m³ | 1 | ₹2,00,000 |
| Chilling plant | 1 | ₹1,50,000 |
| Settling tank with agitator, 3.5 m³ | 1 | ₹1,00,000 |
| LAB feed tank, 1.0 m³ | 1 | ₹20,000 |
| Oleum / acid feed tank, 2.5 m³ | 1 | ₹20,000 |
| LAB main storage tank, 2.5 m³ | 1 | ₹50,000 |
| Oleum / acid storage tank, 5 m³ | 1 | ₹30,000 |
| Barrel pumps with motor | set | ₹30,000 |
| Valves, pipelines, exhaust, weighing machines and lab equipment | lot | ₹50,000 |
From: DC-MSME project profile — Acid Slurry (Alkyl Benzene Sulphonate) (2003)
- Linear alkyl benzene (LAB)9 tonnes a month at ₹40,000 a tonne in the report
- 98% sulphuric acid and oleum14 tonnes a month at ₹6,000 a tonne
From: DC-MSME project profile — Acid Slurry (Alkyl Benzene Sulphonate) (2003)
Suppliers in Building Business Bazaar
Indian Petrochemicals Corpn. Ltd · Vadodara →Pioneer Engineering Co · Mumbai →Dharamsi Morarji Chemical Limited · Mumbai →Dolphen Engg. Enterprises · Ankleshwar →Mazzindia (P) Ltd · Delhi →Mechanico Engineers · Delhi →Precision Machanist · Mumbai →Sethi Engg. Works · Delhi →
In our raw material database
Sulphuric acid →LABSA (linear alkyl benzene sulphonic acid) →Linear alkyl benzene (LAB) →
§5Licences & registration
- Udyam registration
- GST registration
- State Pollution Control Board consent to establish and operate (the report lists this clearance)
- Compliance with hazardous-chemical storage rules for oleum and acid
- Factory licence if your worker count crosses the Factories Act limit
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
PMEGP fits (₹24.40 L, under the ₹50 L manufacturing limit); MUDRA up to ₹20 L; CGTMSE for a loan without collateral; Stand-Up India for SC/ST and women founders.
§7Money
How the investment is worked out: Fixed capital ₹9.86 L (land and building ₹3.00 L + plant and machinery ₹6.86 L) + working capital for 3 months ₹14.54 L = ₹24.40 L.
Working capital: Working capital for 3 months ₹14.54 L; LAB and acid cost ₹4.44 L a month.
Prices from 2003 — machinery, material and selling prices will be much higher now.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: CHEMEXCIL (Basic Chemicals, Cosmetics and Dyes Export Promotion Council)
- Confirm the 8-digit ITC(HS) line with DGFT or your customs broker before shipping.
- You need an Import Export Code (IEC) from DGFT before the first shipment.
§9Risks — where people fail
- Acid burns, spills and fumes
- LAB price swings
- Credit sales to small detergent units
§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 acid slurry (labsa) for detergents unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam registration, GST registration), 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 Acid Slurry (LABSA) for Detergents?
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.