§1What this business is
Low-iron bauxite is crushed to 50–75 mm, pulverised to 100–140 mesh and reacted with sulphuric acid in lead-lined digesters at about 105 °C for 12–16 hours. The liquor settles, the sludge is removed, and the clear solution is concentrated in pans and set in vats; the block is broken into lumps or powdered. About 65% of output goes to water clarification (profile); paper mills use iron-free alum for sizing.
§2Is it right for you?
Who it is for
A chemistry graduate with links to water boards, municipal bodies and paper mills.
Who it is not for
Someone without chemical-safety training.
Advantages
- Water works and paper mills buy in bulk
- Indian raw materials (bauxite, sulphuric acid)
- Steady demand growth of 6–7% a year (profile)
Drawbacks
- Handles hot concentrated sulphuric acid
- Heavy plant (₹85 L)
- Losses in the first two years
- Low-price bulk chemical — freight matters
Skills you need
- Acid digestion and settling
- Keeping iron below limits
- Tendering to water boards
- Effluent handling
Why difficulty 4/5: Hazardous acid process and large capital.
§3Market
Who buys
- Water boards and municipal water works
- Paper mills (sizing)
- Effluent-treatment plants
- Dyeing units
How it sells
- Government tenders
- Direct supply to paper mills
- Chemical traders
Good to know
- Water clarification takes 65% of output (profile).
- Profile: Indian demand about 2,80,000 tons a year, growing 6–7%.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Jaw crusher, single toggle | 3 | ₹7.20 lakh |
| Swing-hammer pulveriser | 2 | ₹8.20 lakh |
| MS lead-lined digester tank | 4 | ₹16.00 lakh |
| Settling tanks | 5 | ₹5.00 lakh |
| Evaporation tanks | 5 | ₹5.00 lakh |
| Coal-fired boiler, water softener, moulds, balance, tanks, electricals and installation | lot | ₹48.60 lakh |
From: SIDBI Stand-Up Mitra project profile — Non-Ferric Alum (2018) — private guide — confirm locally
- Bauxite (60% Al2O3, Fe2O3 under 3%)4.0 tons per 10 tons of alum; Jamnagar bauxite named as the best source
- Sulphuric acid, 98%5.5 tons per 10 tons of alum
- Water60,000 litres per 10 tons of alum
- Fuel480 litres per 10 tons of alum
- Flaked glue and black ash (barium sulphide)settling aids
From: SIDBI Stand-Up Mitra project profile — Non-Ferric Alum (2018) — private guide — confirm locally
In our raw material database
§5Licences & registration
- Udyam registration
- GST
- BIS certification to IS 299 — water boards usually ask for it
- State Pollution Control Board consent (chemical unit)
- Factory licence and hazardous-chemical rules
§6Schemes & subsidies
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
- CGTMSECentralActiveNo collateral, up to ₹10 crore
Stand-Up India for SC/ST and women founders (loans ₹10 L–₹1 crore); CGTMSE for a loan without collateral. Above the PMEGP ₹50 L limit.
§7Money
How the investment is worked out: Land ₹7.50 L + building ₹15 L + plant & machinery ₹85 L + furniture & electricals ₹10 L + preliminary ₹8.50 L + working capital ₹42 L = ₹168 L.
Working capital: Working capital ₹42 L — inventories ₹21 L, receivables ₹10.50 L, overheads ₹10.50 L; bank ₹23.63 L.
Stand-Up Mitra profile from 2018 — machinery and material prices will be higher now.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: CHEMEXCIL
- 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 accidents
- Bauxite with too much iron
- Low tender prices
- Pollution compliance
§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 non-ferric alum (aluminium sulphate) 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), 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 Non-Ferric Alum (Aluminium Sulphate)?
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.
