§1What this business is
Burnt lime is treated with hydrochloric acid in PVC tanks until an almost neutral calcium chloride solution forms. The clear solution is drawn off, evaporated over a rice-husk or coal fire, crystallised, dried and packed in polythene-lined hessian bags. The profile makes 80% pure product, used in petroleum refineries, as antifreeze, for brine and for keeping down dust.
Capacity: 300 tonnes a year installed; 150 tonnes (50%) planned.
§2Is it right for you?
Who it is for
A chemistry graduate near lime and acid suppliers and industrial buyers.
Who it is not for
Anyone not trained to handle acids safely.
Advantages
- Simple chemistry with locally available raw materials
- Many industrial uses
- Small set-up cost
Drawbacks
- Thin margin — 4.58% of sales in the profile
- Hydrochloric acid is dangerous to handle
- A coal or husk-fired evaporator needs pollution consent
Skills you need
- Safe acid handling
- Controlling evaporation and crystallisation
- Selling to industries and chemical traders
Why difficulty 3/5: Simple process, but acid safety and pollution consent need care.
§3Market
Who buys
- Petroleum refineries
- Users of brine and antifreeze
- Road and mine dust-control users
- Chemical traders
How it sells
- Direct supply to industries
- Chemical dealers
Good to know
- The profile says use of the chemical is rising by 10% a year.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Plastic drum | 20 | ₹6,000 |
| MS reactor, 500 litres | 3 | ₹22,500 |
| Coal-fired brick-lined evaporator | 1 | ₹50,000 |
| FRP crystallisers | LS | ₹20,000 |
From: DC-MSME project profile — Calcium Chloride (PMRY series)
- Hydrochloric acid7 tonnes a month — ₹28,000 in the profile
- Burnt lime7 tonnes a month — ₹21,000 in the profile
- Coal or rice husk (fuel for the evaporator)coal ₹2,000 a month in the profile
- Polythene-lined hessian bagsfor packing the finished product
From: DC-MSME project profile — Calcium Chloride (PMRY series)
§5Licences & registration
- Udyam registration
- GST registration
- State Pollution Control Board consent to establish and operate (chemical unit with a fired evaporator)
- Fire safety clearance from the local fire service where required
- Factory licence if your worker count crosses the Factories Act limit
§6Schemes & subsidies
PMEGP and MUDRA (Kishore, ₹50,000–₹5 L) fit this small project.
§7Money
How the investment is worked out: 20 plastic drums ₹6,000 + three 500-litre MS reactors ₹22,500 + coal-fired brick-lined evaporator ₹50,000 + FRP crystallisers ₹20,000 + almirah and fan ₹4,500 + pre-operative ₹12,000 = fixed ₹1,15,000; working capital (one month) ₹77,150. Total ₹1,92,150. Premises rented.
Working capital: ₹77,150 a month: hydrochloric acid 7 tonnes ₹28,000, lime 7 tonnes ₹21,000, coal ₹2,000, wages ₹9,500, packing and transport ₹8,400.
Year not printed. This profile is from the old PMRY scheme (replaced by PMEGP in 2008), so all prices are very old — get fresh quotes.
§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 and fumes
- Calcium chloride soaks up moisture and cakes in storage
- Price competition from large chemical makers
§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 calcium chloride manufacturing 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 Calcium Chloride Manufacturing?
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.