§1What this business is
Ingots are melted at about 720–760 °C in an oil-fired furnace; an atomiser draws the molten metal up through an orifice where a jet of hot air breaks it into fine particles. Suction carries the powder through a collecting duct into a cyclone; it is then sieved into grades and packed. Buyers use it for aluminium paste and paints, pyrotechnics and crackers, thermit welding of rails, explosives, and as a deoxidant in foundries.
Capacity: 300 kg a day; 90,000 kg a year at full capacity (report plans 40% in year 1 to 60% in year 5).
§2Is it right for you?
Who it is for
A metallurgist or foundry person with buyers in paints, fireworks or foundry consumables.
Who it is not for
Anyone not ready to run strict dust-explosion and fire safety.
Advantages
- Many industrial buyers: paint, fireworks, foundries, welding
- Single raw material — aluminium ingots
- Proven technology; the report cites 8–10% yearly demand growth (DGTD estimate)
- Export market exists for powder and paste, says the report
Drawbacks
- Fine aluminium dust is a fire and explosion hazard
- Thin net margin (4–8%)
- Ingot prices follow world aluminium markets
- A few large organised makers dominate
Skills you need
- Melting and atomising
- Particle-size control and sieving
- Dust and fire safety
- Industrial sales
Why difficulty 4/5: Hazardous fine-metal powder and thin margins.
§3Market
Who buys
- Paint and aluminium-paste makers
- Fireworks and pyrotechnic units
- Foundries (deoxidant, exothermic compounds)
- Thermit welding (rails) and explosives makers
- Automobile component makers
How it sells
- Direct supply to manufacturers
- Chemical and metal-powder traders
Good to know
- The report cites a DSIR estimate of over 10,000 MT a year of Indian production and a DGTD estimate of 8–10% yearly demand growth (no date given).
- Four large organised makers plus many small units of about 1 tonne a day exist, says the report.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Oil-fired furnace, 250 kg | 1 | ₹3,00,000 |
| Ball mill, 50 litres | 1 | ₹2,00,000 |
| Hot air chamber | 1 | ₹1,75,000 |
| Powder collecting duct with suction | 1 | ₹1,50,000 |
| Weighing platform, 500 kg | 1 | ₹1,50,000 |
| Compressor | 1 | ₹75,000 |
| Oil tanker | 1 | ₹50,000 |
| Water cooling tank and pumps | — | ₹50,000 |
| Other equipment and hand tools | — | ₹50,000 |
From: PMEGP sample project report — Aluminium Powder Making Unit (prepared by Udyami/Samadhan)
- Aluminium ingots110 MT a year at ₹1,40,000/MT at full capacity — the only raw material
From: PMEGP sample project report — Aluminium Powder Making Unit (prepared by Udyami/Samadhan)
Suppliers in Building Business Bazaar
Amie Engg. Co. Ltd · Kolkata →G.R. ENGG. Works (P) Ltd · Mumbai →Hindustan Aluminium Co. Ltd · Mirzapur →Indian Aluminium Co. Ltd · Sambalpur →Indian Furnace Co. Ltd · Mumbai →Machas Aluminium Co. Ltd · Mattur Danu →
In our raw material database
§5Licences & registration
- GST
- Udyam
- NOC from State Pollution Control Board
- Fire NOC
- Factory licence
- Buyers in explosives and fireworks need their own PESO licences; check storage rules for metal powders
§6Schemes & subsidies
PMEGP sample project at ₹21.22 L; CGTMSE can cover the collateral-free loan.
§7Money
How the investment is worked out: Plant & machinery ₹12.00 L + furniture ₹2.00 L + working capital ₹7.22 L = ₹21.22 L. Land own or rented. Finance: own ₹2.12 L, term loan ₹12.60 L, working capital ₹6.50 L.
Working capital: Working capital ₹7.22 L, of which ₹6.50 L is bank finance; 10 days each of ingots and powder.
Year not printed on the report — check current machinery prices.
§8Export potential
Export council / board: EEPC India
- The report prints no HS code; confirm the ITC(HS) line with DGFT before exporting.
- Metal powders may ship as dangerous goods; check carrier rules.
§9Risks — where people fail
- Dust explosion or fire
- Aluminium price swings
- Dependence on seasonal fireworks demand
- Pollution-board conditions on the furnace
§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 aluminium powder (atomised) unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (GST, Udyam), 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 Aluminium Powder (Atomised)?
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.