§1What this business is
Bark containing oxalates is bought from the forest department or the local panchayat and stored. It is chipped, sieved and fed by screw conveyor into a reactor with hot caustic soda solution (warmed to about 60 °C); steam keeps the temperature steady. The acid is then recovered, crystallised and dried. Oxalic acid is used for cleaning and bleaching, in leather, textiles and metal polishing; the profile says demand is good at home and abroad.
Capacity: 130 tonnes of oxalic acid crystals a year at ₹20,000 a tonne (₹26.00 lakh) at full capacity.
§2Is it right for you?
Who it is for
A chemistry graduate or chemical trader in a forest district with assured bark supply.
Who it is not for
Anyone without chemical-safety training.
Advantages
- Uses a forest by-product (bark)
- Industrial chemical with steady buyers
- Good net surplus in the profile (₹5,85,000)
- Export demand, as the profile notes
Drawbacks
- Chemical process with caustic soda and steam — needs trained staff
- Bark supply depends on forest-department permission
- Large-scale synthetic plants and imports set the price
- Effluent and pollution-control costs
Skills you need
- Chemical process control
- Boiler and reactor operation
- Lab testing of purity
- Effluent handling
Why difficulty 4/5: A real chemical plant: permits, safety, effluent and bark supply all need managing.
§3Market
Who buys
- Leather tanneries
- Textile and bleaching units
- Metal polishing and cleaning-product makers
- Chemical traders
How it sells
- Chemical dealers and distributors
- Direct supply to industrial users
- Export through merchant exporters
Good to know
- The profile says there is good demand in both domestic and international markets.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Wood chipper and band saw | 1 each | — |
| Screens | 1 set | — |
| Reactor vessel | 1 | — |
| Baby boiler | 1 | — |
| Scrubber / absorption tower and condenser | 1 each | — |
| Pumps, drier and storage tank | 1 set | — |
| Laboratory equipment | 1 set | — |
| Equipment total in the profile | 1 set | ₹5,00,000 |
From: KVIC Project Profile — Production of Oxalic Acid (PMEGP)
- Oxalate-bearing tree barkfrom the forest department or local panchayat; raw material ₹17,78,500 a year in the profile
- Caustic sodawarmed in the reactor to about 60 °C
- Bags and labels₹75,000 a year in the profile
From: KVIC Project Profile — Production of Oxalic Acid (PMEGP)
In our raw material database
§5Licences & registration
- Udyam registration
- GST registration
- State Pollution Control Board consent to establish and operate (chemical unit)
- Factory licence and fire NOC
- Boiler registration if the boiler falls under the Boilers Act
- Forest-department permit or transit pass for bark
§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 fits; MUDRA (up to ₹20 lakh) and CGTMSE; Stand-Up India for SC/ST and women founders (loans ₹10 lakh–₹1 crore).
§7Money
How the investment is worked out: KVIC profile: land and building shed 1,000 sq ft ₹3,00,000 + equipment ₹5,00,000 + working capital ₹6,50,000 = ₹14,50,000.
Working capital: Working capital ₹6,50,000 per cycle. Raw material ₹17,78,500 and labels/packing ₹75,000 a year.
Year not printed on the KVIC profile — check current machinery prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: Basic Chemicals, Cosmetics & Dyes Export Promotion Council (CHEMEXCIL)
- 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
- Chemical burns and toxic exposure (oxalic acid is poisonous)
- Bark supply cut
- Pollution-control action
- Price pressure from imports
§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 oxalic acid from tree bark 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 Oxalic Acid from Tree Bark?
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.