§1What this business is
Diatomaceous earth is a soft, chalk-like rock made of fossilised algae, about 80–90% silica. The stone is tested, broken in a jaw crusher, ground in a three-roller pulverising mill, screened (oversize goes back for regrinding), dried in an oven if moist, tested again and bagged. Buyers use it as a filter aid, mild abrasive (metal polish, toothpaste), filler in paints, plastics and rubber, anti-caking agent, insecticide, cat litter and potting soil.
§2Is it right for you?
Who it is for
Someone with access to diatomite ore and contacts in filtration, paint or agro-chemical industries.
Who it is not for
Someone without a testing set-up or industrial buyers.
Advantages
- Many industrial uses — filters, paints, plastics, insecticides, pet litter
- Simple mineral-grinding process
- One packaged mill line does crushing, grinding and dust collection
- Can grade the powder for different buyers
Drawbacks
- Depends on a steady supply of diatomite ore
- Fine dust needs good collection and worker protection
- Industrial buyers want consistent test results
- Raw material is the biggest cost (₹49.50 L in year 1)
Skills you need
- Mineral grinding and screening
- Quality testing (silica, moisture, brightness)
- Dust control
- Industrial selling
Why difficulty 3/5: Process is simple; steady ore and demanding industrial buyers make it harder.
§3Market
Who buys
- Water and beverage filtration users
- Paint, plastic and rubber makers (filler, anti-block)
- Toothpaste and metal-polish makers (mild abrasive)
- Agro-chemical users (insecticide), pet-litter and gardening sellers
How it sells
- Direct supply to industrial buyers
- Dealers in industrial minerals
Good to know
- The report lists uses from filtration aid to thermal insulator and catalyst support.
- Quality checks named: brightness, abrasiveness, absorptive capacity, silica, density and moisture.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| 3-roller pulverising mill set — automatic vibrator, cyclone dust collector, jaw crusher and hopper | 1 set | ₹15.25 lakh (₹17,99,500 with GST) |
| Moisture-removal oven | 1 | — |
| Powder packaging (bagging) machine | 1 | — |
| Bucket elevator, belt conveyors, storage hopper, vibrating feeder | 1 lot | — |
From: PMEGP sample project report — Diatomaceous Earth Powder (prepared by Udyami/Samadhan)
- Diatomaceous earth stones or oretested on arrival; raw material ₹49.50 L in year 1
- Packaging material (premade bags)₹0.98 L in year 1
From: PMEGP sample project report — Diatomaceous Earth Powder (prepared by Udyami/Samadhan)
§5Licences & registration
- Udyam
- GST
- BIS certification (listed in the report)
- ISO certification (listed in the report)
- NOC from the State Pollution Control Board
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
PMEGP, MUDRA and CGTMSE fit the ₹24.63 L project; Stand-Up India for SC/ST/women founders.
§7Money
How the investment is worked out: Samadhan report: plant & machinery ₹18.00 L + furniture ₹1.00 L + other assets ₹0.50 L + working capital ₹5.13 L = ₹24.63 L; land and building owned/leased, not costed.
Working capital: Working capital ₹5.13 L (bank limit ₹4.62 L).
Year not printed on the sample report — check current machinery prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: Not verified yet
- HS codes are from the WCO HS 2022 list; confirm the 8-digit ITC(HS) line with DGFT or your customs broker.
- You need an Import Export Code (IEC) from DGFT before the first shipment.
§9Risks — where people fail
- Ore supply interruptions
- Silica dust health risk
- Quality rejections
- Price competition from imported powder
§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 diatomaceous earth powder unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam, 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 Diatomaceous Earth Powder?
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.