§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

ItemQtyCost
Jaw crusher, single toggle3₹7.20 lakh
Swing-hammer pulveriser2₹8.20 lakh
MS lead-lined digester tank4₹16.00 lakh
Settling tanks5₹5.00 lakh
Evaporation tanks5₹5.00 lakh
Coal-fired boiler, water softener, moulds, balance, tanks, electricals and installationlot₹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

Bauxite →

§5Licences & registration

  1. Udyam registration
  2. GST
  3. BIS certification to IS 299 — water boards usually ask for it
  4. State Pollution Control Board consent (chemical unit)
  5. Factory licence and hazardous-chemical rules

We can do this registration for you

§6Schemes & subsidies

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.

How to prepare a loan file

§8Export potential

Confirm the HS code in the DGFT ITC(HS) lookup before you export

2833.22Sulphates of aluminium

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.

  1. 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.
  2. Days 31–60: Udyam and the licences you need (Udyam registration, GST), a project report (DPR), and the scheme or loan file.
  3. Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.

§11Who to connect with

Not verified yet

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.

Get a DPR / loan file made

Sources

  1. SIDBI Stand-Up Mitra project profile — Non-Ferric Alum (2018)

Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.