§1What this business is

Calcined magnesite powder is cleaned of iron on a magnetic separator, reacted with dilute sulphuric acid, concentrated in an evaporator, crystallised, centrifuged, dried and packed. Magnesium sulphate (Epsom salt) is used as a pharmaceutical raw material, to correct magnesium deficiency in crops, and in bath salts and cosmetics. The report targets IP (Indian Pharmacopoeia) standards.

Capacity: 1.5 MT a day, 450 MT a year; 270 MT in year 1 at 60%.

§2Is it right for you?

Who it is for

A chemist or chemical trader who can sell to pharma and agri-input buyers.

Who it is not for

Someone without acid-handling and safety experience.

Advantages

  • Several markets: pharma, agriculture, cosmetics, bath salts
  • Simple, well-known process
  • Raw materials are available in India
  • Gross margin above 30% in the report

Drawbacks

  • Handles strong sulphuric acid — safety risk
  • Low price per tonne; freight eats margin
  • Pharma grade needs strict testing
  • Boiler and evaporator add running cost

Skills you need

  • Acid reaction and crystallisation
  • Lab testing to IP standards
  • Boiler and centrifuge operation
  • B2B and agri-dealer selling

Why difficulty 4/5: Acid handling, testing and low price per tonne make it demanding.

§3Market

Who buys

  • Pharmaceutical companies
  • Fertiliser and agri-input dealers
  • Cosmetics and bath-salt makers
  • Chemical laboratories and tofu makers

How it sells

  • Direct B2B supply
  • Agri-input distributors
  • Chemical traders

Good to know

  • The report lists uses as a laxative, in pre-term labour and asthma treatment, joint-pain relief, skin and hair care, crop magnesium correction, flotation therapy and as a desiccant.

§4Raw material & machinery

ItemQtyCost
Magnetic separator2₹30,000 (₹15,000 each)
Stoneware vessels, 100 litre15₹60,000 (₹4,000 each)
Evaporator, SS with MS jacket, 500 litre2₹1,00,000 (₹50,000 each)
Crystallizer, SS with MS cooling jacket, 500 litre2₹1,10,000 (₹55,000 each)
Boiler 100 psi with chimney and pipeline, 100 kg/hr1₹2,25,000
Centrifuge, basket type, 24" diameter1₹80,000
Filter press, 16 MS plates1₹60,000
Electric drier, 48 trays (32" × 32" × 4")1₹1,25,000
Laboratory equipment1 lot₹25,000
Misc. equipment: MS storage tank, pump, furniture1 lot₹50,000
Installation (10% of plant and machinery)1₹85,000

From: PMEGP sample project report — Magnesium Sulphate (prepared by Udyami/Samadhan)

  • Sulphuric acid 98%180 MT a year at ₹8,500 per MT at full capacity
  • Dead-burnt magnesite (MgO)90 MT at ₹6,000 per MT

From: PMEGP sample project report — Magnesium Sulphate (prepared by Udyami/Samadhan)

§5Licences & registration

  1. Udyam registration
  2. GST
  3. State Pollution Control Board consent
  4. Boiler registration under the Boilers Act
  5. Fire NOC
  6. If sold as fertiliser: registration under the Fertiliser Control Order

We can do this registration for you

§6Schemes & subsidies

PMEGP fits (beneficiary margin 10% general, 5% special as printed); CGTMSE; Stand-Up India for SC/ST or women founders.

§7Money

How the investment is worked out: Samadhan report: building and civil work (2,500 sq ft) ₹5.00 L, plant and machinery ₹9.50 L, furniture ₹0.50 L, pre-operative ₹0.72 L, working capital ₹5.79 L = ₹21.50 L.

Working capital: Raw material at full use ₹20.70 L (sulphuric acid ₹15.30 L, magnesite ₹5.40 L); 30 days' stock; working capital ₹5.79 L (bank ₹5.21 L).

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

How to prepare a loan file

§8Export potential

Confirm the HS code in the DGFT ITC(HS) lookup before you export

2833.21Sulphates of magnesium

Export council / board: CHEMEXCIL (Basic Chemicals, Cosmetics & Dyes Export Promotion Council)

  • 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

  • Acid spills and burns
  • Batch rejection
  • Freight cost
  • Price competition from big producers

§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 magnesium sulphate (epsom salt) unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
  2. Days 31–60: Udyam and the licences you need (Udyam registration, GST), 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 Magnesium Sulphate (Epsom Salt)?

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

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Sources

  1. PMEGP sample project report — Magnesium Sulphate (prepared by Udyami/Samadhan)

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