§1What this business is
Chlorine gas is dosed into 35% caustic soda lye in a plastic tank with cooling; after 7–8 hours the sodium hypochlorite is tested for chlorine and packed in 40-litre cans. Water-treatment plants, municipal bodies, swimming pools, laundries, textile, paper and food units buy it. Quality follows IS 11673.
Capacity: 2 KL a day, 600 KL a year; 50% in year 1.
§2Is it right for you?
Who it is for
A chemistry graduate or chemical trader who can handle hazardous gas safely.
Who it is not for
Anyone who cannot invest in gas safety and training.
Advantages
- Water boards and municipal bodies buy regularly
- Simple chemistry with a short batch time
- Gross margin about 35% in the report
- Many uses: disinfection, laundry, textiles, paper, food plants
Drawbacks
- Chlorine gas is toxic — strict safety needed
- The product loses strength in storage; it must sell fast
- Heavy and bulky to transport
- Many buyers purchase only through tenders
Skills you need
- Safe chlorine handling
- Testing available chlorine
- Tender and institutional sales
- Moving liquid chemicals
Why difficulty 4/5: Hazardous gas, pollution consent and tender sales make it demanding.
§3Market
Who buys
- Water supply boards, municipal bodies and nagar parishads
- Swimming pools
- Textile, paper and detergent units
- Food and fish processing units
- Hospitals and laundries
How it sells
- Government tenders
- Chemical dealers
- Direct supply to industries
Good to know
- Selling price ₹20,000 per KL in the report.
- Strength grades: 3–6% for household and hospital use, 12–16% for water treatment and pools (report).
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Hammer or ball mill (as listed in the report) | 1 | ₹4,00,000 |
| Rotary kiln | 1 | ₹1,75,000 |
| MS storage tanks | 2 | ₹1,00,000 (₹50,000 each) |
| Boiler, 100 psi, 100 kg/hour, with chimney | 1 | ₹2,25,000 |
| Basket centrifuge, 24-inch | 1 | ₹80,000 |
| Vacuum evaporator | 1 | ₹60,000 |
| Electric tray drier, 48 trays | 2 | ₹1,70,000 (₹85,000 each) |
| Misc: storage tank, pump, furniture | LS | ₹50,000 |
From: PMEGP sample project report — Sodium Hypochlorite (prepared by Udyami/Samadhan)
- Caustic soda flakes75 MT a year at ₹45,000 per MT (full capacity)
- Chlorine gas45 MT a year at ₹30,000 per MT
- Plastic cans, 40 litres1,250 cans at ₹250 each
From: PMEGP sample project report — Sodium Hypochlorite (prepared by Udyami/Samadhan)
§5Licences & registration
- Udyam registration
- GST registration
- State Pollution Control Board consent to establish and operate
- PESO licence if chlorine cylinders stored exceed the Gas Cylinders Rules limit
- Factories Act registration and hazardous-chemical safety rules
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
PMEGP (the report is a PMEGP sample), CGTMSE for a loan without collateral, Stand-Up India for SC/ST or women founders. Above MUDRA's ₹20 lakh limit.
§7Money
How the investment is worked out: Samadhan report: building/shed 1,000 sq ft ₹4.00 L, plant & machinery ₹12.60 L, furniture ₹0.50 L, pre-operative ₹0.41 L, working capital ₹7.50 L = ₹25.00 L (term loan ₹15.76 L, working capital ₹6.75 L, own money ₹2.50 L); land 2,000 sq ft own or rented. Note: the report's machinery list (mill, rotary kiln, boiler, driers) matches a bleaching-powder plant, not the liquid process it describes — get your own quotes.
Working capital: Working capital ₹7.50 L (bank ₹6.75 L).
Year not printed on the report — check current machinery and material prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: CHEMEXCIL
- Export is rare for a small unit — the liquid is bulky and loses strength.
- Dangerous-goods shipping rules apply.
§9Risks — where people fail
- Chlorine leak or accident
- Rejection due to strength loss
- Caustic soda price swings
- Late payments from government buyers
§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 sodium hypochlorite (liquid bleach) 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 Sodium Hypochlorite (Liquid Bleach)?
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.