§1What this business is

Alcohol is diluted with distilled water in a reactor vessel, mixed with thickener, glycerine and fragrance in a stirrer vessel, tested in a small lab, then filled and capped in bottles. The report plans 500 litres a day. Buyers are pharmacies, shops, offices, hospitals and institutions.

Capacity: 500 litres a day; 1,50,000 litres (7,50,000 bottles of 200 ml) a year; year 1 at 35%.

§2Is it right for you?

Who it is for

Someone with institutional buyers (hospitals, hotels, offices) or a pharma distribution link.

Who it is not for

Someone counting on pandemic-level demand.

Advantages

  • Steady demand from hospitals, offices and schools
  • Fast filling with an automatic filler
  • Can supply bulk packs and private labels
  • Simple mixing process

Drawbacks

  • Very thin margin (1–6% of sales)
  • Demand fell sharply after the COVID peak
  • Alcohol is flammable and needs safe storage
  • Needs a licence from the drugs authority

Skills you need

  • Alcohol dilution and quality testing
  • Safe handling of flammable liquids
  • Institutional tendering and sales
  • Regulatory paperwork

Why difficulty 3/5: Easy to make, but the margin is thin and demand is less than in 2020.

§3Market

Who buys

  • Pharmacies and general stores
  • Hospitals and clinics
  • Offices, schools and hotels

How it sells

  • Distributors and wholesalers
  • Direct institutional supply
  • Private label and online sale

Good to know

  • The report sells a 200 ml bottle at ₹60 in year 1, rising ₹3 a year.
  • It names gel as the fastest-growing type and western India as the largest market.

§4Raw material & machinery

ItemQtyCost
High-speed agitator with 500 litre tank1₹3,20,000
Storage tank, 1,000 litre1₹2,85,000
Transfer pump2₹1,50,000 (₹75,000 each)
Automatic filling and capping machine1₹7,50,000

From: PMEGP sample project report — Hand Sanitizer (prepared by Udyami/Samadhan)

  • Isopropyl alcohol, distilled water and other ingredients (as a group)₹198 per litre of sanitiser in the report — ₹39.60 per 200 ml bottle
  • Carbopol 940, triethanolamine, glycerine, polysorbate 20, preservative, perfumelisted as essential ingredients
  • Neem, peppermint extract, clove oiloptional additives
  • Sanitiser bottles200 ml bottles

From: PMEGP sample project report — Hand Sanitizer (prepared by Udyami/Samadhan)

Suppliers in Building Business Bazaar

A.G. Poly Packs (P) Ltd · Delhi →Amogh Pet Container (P) Ltd · Jaipur →Baxi Chemicals · Jaipur →Chemco Group of Companies · Mumbai →Dhiren Plastic Industries · Ahmedabad →Gupta Industries · Jaipur →KanhaiyaLalPatni& Sons · Jaipur →M.N. Hashasingh · Jaipur →Packwell India Pvt. Ltd · Jaipur →ShriBhawatiMachtech (India) Pvt. Ltd · Ahmedabad →Arihant Packaging · Jaipur →Rajasthan State Ganganagar Sugar Mills Ltd · Jaipur →

In our raw material database

Hydrogen peroxide →Ethanol (ethyl alcohol) →Glycerine (glycerol) →

§5Licences & registration

  1. Licence from the State Drugs Controller (FDCA) — the report lists this
  2. Udyam
  3. GST
  4. Fire safety NOC for alcohol storage
  5. Legal Metrology packaged commodity registration
  6. Trademark (optional)

We can do this registration for you

§6Schemes & subsidies

₹23.35 L manufacturing project fits PMEGP (the report lists KVIC margin money) and CGTMSE; Stand-Up India for SC/ST or women founders.

§7Money

How the investment is worked out: Report cost of project ₹23.35 L: plant & machinery ₹15.05 L, furniture ₹0.75 L, working capital ₹7.55 L; building 1,500 sq ft own or rented (not costed). Finance: term loan ₹14.22 L, own ₹2.34 L, working-capital loan ₹6.80 L.

Working capital: Working capital ₹7.55 L (bank ₹6.80 L) — 10 days of raw material and 7 days of finished stock.

Year not printed on the report — check current machinery prices.

How to prepare a loan file

§8Export potential

The report covers the home market only; it does not discuss export.

§9Risks — where people fail

  • Demand swings after health scares end
  • Fire risk from alcohol storage
  • Alcohol price changes
  • Licence 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 hand sanitizer manufacturing unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
  2. Days 31–60: Udyam and the licences you need (Licence from the State Drugs Controller (FDCA) — the report lists this, Udyam), 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 Hand Sanitizer Manufacturing?

DPR, loan file or registration — ask us on WhatsApp.

Get a DPR / loan file made

Sources

  1. PMEGP sample project report — Hand Sanitizer (prepared by Udyami/Samadhan)

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