§1What this business is
Tested bauxite is crushed and loaded from the top of an oil-fired vertical shaft kiln with a tall chimney, where it is fired at about 900 °C. The calcined lumps are sieved by size and bagged. Refractory and abrasive makers are the main buyers; smaller amounts go to welding fluxes and anti-skid surfaces. India imports about 60% of its calcined bauxite (profile).
Capacity: Oil-fired vertical shaft kilns rated 30 tonnes a day (2 listed).
§2Is it right for you?
Who it is for
Someone near bauxite mines (Gujarat, central India) with refractory-industry contacts.
Who it is not for
Someone without an assured supply of high-grade bauxite.
Advantages
- Imports are high, so local supply has room
- Steel growth drives refractory demand
- Simple kiln process
Drawbacks
- High-grade bauxite (iron oxide under 2.5%) is scarce
- Fuel oil cost is a big expense
- Dust and fumes — scrubber and dust catcher needed
Skills you need
- Kiln firing control
- Ore testing (alumina, iron)
- Selling to refractory makers
- Pollution control
Why difficulty 3/5: Simple process, but ore supply and kiln emissions need care.
§3Market
Who buys
- Refractory makers
- Abrasive makers
- Welding-flux and anti-skid surface makers
- Cement and steel plants
How it sells
- Direct supply to refractory plants
- Mineral traders
Good to know
- India imports about 60% of its calcined bauxite, mainly from China (profile).
- Sold at ₹20/kg in the profile.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Oil-fired vertical shaft kiln with refractory lining, 33 m chimney, skip bucket and burners, 30 tons a day | 2 | ₹15,00,000 |
| Jaw crusher with 10 HP motor | 1 | ₹1,25,000 |
| Rotary sieve with 1.5 HP motor | 1 | ₹50,000 |
| Wheel barrows | 4 | ₹60,000 |
| Weighing balance up to 500 kg | 2 | ₹10,000 |
| Overhead water tank, bore well and pump | 1 | ₹30,000 |
| Bag sewing machine | 1 | ₹30,000 |
| Generator set, 10 kVA | 1 | ₹50,000 |
| Scrubber | 1 | ₹1,80,000 |
| Dust catcher | 1 | ₹40,000 |
| Exhaust fans | 5 | ₹15,000 |
| Tools, fixtures, racks; testing equipment | lot | ₹30,000 |
From: SIDBI Stand-Up Mitra project profile — Calcined Bauxite (2018) — private guide — confirm locally
- High-grade bauxiteiron oxide below 2.5% and minimal alkali; Gujarat, Maharashtra and central India deposits
- Fuel oilfor kiln firing at about 900 °C
- Bagsfor packing calcined lumps
From: SIDBI Stand-Up Mitra project profile — Calcined Bauxite (2018) — private guide — confirm locally
§5Licences & registration
- Udyam registration
- GST
- State Pollution Control Board consent (kiln)
- Mineral dealer registration and transit passes where the state requires
- Factory licence
§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 ₹4.50 L + building ₹8.50 L + plant & machinery ₹27 L (2 shaft kilns ₹15 L, crusher, sieve, scrubber) + furniture & electricals ₹3 L + preliminary ₹2 L + working capital ₹19 L = ₹64 L.
Working capital: Working capital ₹19 L — inventories ₹8 L, receivables ₹8 L, overheads ₹3 L; bank ₹12 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: CAPEXIL
- 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
- Ore quality and supply
- Cheap Chinese imports
- Fuel price
- 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 calcined bauxite 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 Calcined Bauxite?
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.