§1What this business is
Magnesite bricks are basic refractories: they do not react with basic slag, so they line basic open-hearth and steel-melting furnaces and furnaces that produce and refine non-ferrous metals. Dead-burnt magnesite is crushed in a jaw crusher and mill and screened into three grain sizes, which are mixed in the ratio 45:10:45. A magnetic separator removes metallic iron. A binder — caustic magnesia, sulphite lye, magnesium sulphate or milk of lime — is added, the wet mix is blended in a mixer and pressed into bricks under high pressure. The bricks are dried in well-ventilated rooms and fired in a kiln at 1,500°C. Shaping runs on one shift; the kiln fires round the clock. The profile lists IS 1749:1972 for magnesite refractories among the standards.
Capacity: 6,000 tonnes of bricks a year — 20 tonnes a day for 300 days.
§2Is it right for you?
Who it is for
A ceramic or refractory technologist with capital and contacts in steel plants, ideally near the magnesite belt of Tamil Nadu.
Who it is not for
A first-time small investor, or anyone without a way to sell to steel and foundry buyers.
Advantages
- Steel plants need basic refractories for lining and for regular repairs
- The profile says few units make magnesite bricks in India
- One main raw material, available from Tamil Nadu
- Low break-even of 39% in the profile
Drawbacks
- Project cost above ₹2.5 crore
- Furnace oil alone is ₹7.5 lakh a month in the profile
- Kiln smoke and magnesite dust need pollution control and a site away from homes
- The profile's own cost and turnover figures do not fully agree
Skills you need
- Refractory grading, batching and pressing
- High-temperature kiln firing
- Laboratory testing of bricks
- Selling to steel plants and furnace builders
Why difficulty 4/5: Heavy capital, a 1,500°C kiln, pollution clearances and industrial buyers.
§3Market
Who buys
- Iron and steel plants
- Steel-melting and foundry units
- Non-ferrous metal smelters and refiners
- Furnace builders and repair contractors
How it sells
- Direct supply against plant tenders and purchase orders
- Sale through refractory dealers and furnace contractors
Good to know
- The profile says iron and steel is by far the largest user of refractories.
- Average selling rate in the financial analysis is ₹9,350 a tonne.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Jaw crusher 12" × 12" with 15 HP motor | 1 | ₹2,20,000 |
| Perforated pan mill, 7 ft pan, with 30 HP motor | 1 | ₹2,50,000 |
| Impact grinder, 18" disc, with 30 HP motor | 1 | ₹2,20,000 |
| Vibrating screen 4 ft × 2 ft with 2 HP motor | 1 | ₹20,000 |
| Rotary screen with different meshes, 5 HP motor | 1 | ₹40,000 |
| Bucket elevator with 5 HP motor | 1 | ₹40,000 |
| Drum-type electromagnetic separator | 1 | ₹40,000 |
| Double-shaft U mixer with 10 HP motor | 1 | ₹70,000 |
| Horizontal pug mill with wire-cutting table, 20 HP motor | 1 | ₹2,70,000 |
| Friction screw press, 21" stroke, with 15 HP motor | 2 | ₹1,50,000 |
| Screw-type hand press with die | 2 | ₹50,000 |
| Shuttle kiln | 1 | ₹33,60,000 |
| Platform weighing machine and thermocouple | — | ₹30,000 |
| Water pumping set with pipe fittings, 2 HP motor | 1 set | ₹50,000 |
| Testing equipment (drying oven, chemical balance, platinum crucible, cold MOR testing machine and others) | — | ₹1,50,000 |
| Energy-conservation instruments (energy meter, power-factor meter, Orsat apparatus) | — | ₹46,000 |
| Pollution equipment (vacuum cleaner, dust collector) | — | ₹25,000 |
| Dies and moulds | — | ₹2,00,000 |
From: DC-MSME project profile — Magnesite Refractory Bricks (2011)
- Dead-burnt magnesite (powder and clinker)500 tonnes a month at ₹5,000 a tonne
- Binder — caustic magnesia, sulphite lye, magnesium sulphate or milk of limenamed in the process; no cost printed
- Furnace oil for the kiln15,300 litres a month at ₹50 a litre in the profile
From: DC-MSME project profile — Magnesite Refractory Bricks (2011)
§5Licences & registration
- Udyam registration
- GST registration
- State Pollution Control Board consent to establish and operate (kiln emissions and dust)
- Factory licence and plan approval
- ESI and PF registration
- BIS standards such as IS 1749 where buyers ask for certified bricks
Start it in your state
Pick your state: today’s cost, central + state subsidy, raw material, land and help, on one page.
§6Schemes & subsidies
At ₹2.56 crore the project is far above PMEGP's ₹50 lakh ceiling; CGTMSE covers collateral-free loans up to ₹10 crore.
§7Money
How the investment is worked out: Printed total project cost ₹2,56,23,400 = fixed capital ₹1,42,65,100 + working capital for 3 months ₹1,13,58,300. The fixed-capital lines printed are land ₹10,00,000, building ₹19,00,000, plant and machinery ₹56,32,550 and pre-operative ₹1,00,000; these four lines add up to ₹86,32,550, which is less than the printed fixed-capital total, so take fresh quotations before you plan.
Working capital: Recurring cost ₹37,86,100 a month: magnesite ₹25,00,000 (500 tonnes at ₹5,000), power and furnace oil ₹9,00,000, salaries ₹3,26,600, other expenses ₹59,500. Working capital for 3 months ₹1,13,58,300.
Prices from March 2011 — land, kiln, magnesite and furnace-oil costs will be much higher now.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: CAPEXIL
- The profile does not plan exports; the market is Indian steel and metal plants.
- Confirm the 8-digit ITC(HS) line with DGFT or your customs broker before shipping.
§9Risks — where people fail
- Rise in furnace-oil and magnesite prices
- A downturn in steel-industry orders
- Bricks cracking or under-firing in the kiln
- Pollution board action on dust and kiln emissions
§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 magnesite refractory bricks 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
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Magnesite Refractory Bricks?
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.