§1What this business is
Chlorine gas is bubbled through heavy normal paraffin in a lead-bonded reactor at a set temperature for about 26–28 hours to reach 70% chlorination. The hydrogen chloride given off is absorbed to make 32% hydrochloric acid, and leftover gas is scrubbed with milk of lime, which yields calcium chloride. Air is blown through to remove trapped gas and 1–1.5% epoxidised soyabean oil is added as stabiliser. It is sold to PVC compounders, paint, rubber, textile and metal-working oil makers, to customer specification.
Capacity: 1,000 tonnes of chlorinated paraffin and 1,200 tonnes of hydrochloric acid a year; three shifts.
§2Is it right for you?
Who it is for
A chemical engineer with chlorine-handling experience and buyers among PVC and paint makers.
Who it is not for
A first-time founder or anyone without a chemical-zone plot.
Advantages
- Used across PVC, paints, rubber, textiles and metal-working oils
- The report says demand was growing 6–7% a year
- By-products (hydrochloric acid, calcium chloride) also sell
Drawbacks
- Chlorine is a toxic gas — a leak can be deadly
- Very large working capital (₹61.89 L) for the turnover
- The report counts 3,035 small units already in the trade
Skills you need
- Chlorine handling and emergency response
- Reaction control to reach the target chlorine level
- Bulk buying and credit control
Why difficulty 5/5: Toxic chlorine, three-shift running and very large working capital.
§3Market
Who buys
- PVC compounders and cable makers (secondary plasticiser)
- Paint, rubber and textile units (flame retardant)
- Metal-working oil and foundry units
How it sells
- Direct sale in drums or tankers
- Chemical traders
Good to know
- The report puts small-sector production at around 70,000 tonnes a year from 3,035 units.
- There is no BIS standard; product is made to customer specification.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| MS lead-bonded reactor, 4 tonnes | 1 | ₹3,50,000 |
| HCl gas absorption column, 9 ft | 1 | ₹2,00,000 |
| HDPE packed absorption column | 1 | ₹1,00,000 |
| Milk-of-lime storage tank, HDPE, 3,000 litres | 1 | ₹25,000 |
| Heavy normal paraffin storage tank, 20 KL | 1 | ₹1,50,000 |
| Chlorinated paraffin aeration tank, 6,000 litres | 1 | ₹1,00,000 |
| Cooling tower, 100 TR | 1 | ₹1,50,000 |
| DG set | 1 | ₹1,00,000 |
| Chlorine storage yard with chain-pulley arrangement | 1 | ₹1,00,000 |
| Stainless-steel concentration vessel, 7,000 litres | 1 | ₹1,00,000 |
| Air compressor with 7.5 HP motor | 1 | ₹50,000 |
| Effluent treatment plant | 1 | ₹50,000 |
From: DC-MSME project profile — Chlorinated Heavy Normal Paraffin (2003)
- Heavy normal paraffin38 tonnes a month at ₹23,000 a tonne in the report
- Chlorine133 tonnes a month at ₹7,000 a tonne (as printed)
- Lime2 tonnes a month at ₹4,000 a tonne
- Stabiliser (epoxidised soyabean oil)1.2 tonnes a month at ₹80,000 a tonne
From: DC-MSME project profile — Chlorinated Heavy Normal Paraffin (2003)
§5Licences & registration
- Udyam registration
- GST registration
- State Pollution Control Board consent to establish and operate
- PESO licence for storing chlorine containers under the Gas Cylinders Rules
- On-site emergency plan under the hazardous-chemical rules
- Factory licence if your worker count crosses the Factories Act limit
§6Schemes & subsidies
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
The ₹85.39 L project is above PMEGP's ₹50 L limit; CGTMSE covers collateral-free loans and Stand-Up India covers SC/ST and women founders.
§7Money
How the investment is worked out: Fixed capital ₹23.50 L (land and building ₹4.00 L + plant and machinery ₹19.50 L) + working capital for 3 months ₹61.89 L = ₹85.39 L.
Working capital: Working capital for 3 months ₹61.89 L — raw material alone is ₹19.09 L a month.
Prices from 2003 — machinery, material and selling prices will be much higher now.
§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
- Chlorine leak
- Paraffin and chlorine price swings
- Pollution control action if scrubbing fails
§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 chlorinated paraffin (chlorinated heavy normal paraffin) 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 Chlorinated Paraffin (Chlorinated Heavy Normal Paraffin)?
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.