What is a sulphuric acid project report?
A sulphuric acid project report is a detailed project report (DPR) for a plant that burns elemental sulphur and turns the gas into 98% acid. Most new plants use the double contact double absorption process. It sets out the process, machinery, sulphur supply, buyers, approvals, project cost, means of finance, five-year projections, DSCR and break-even that lenders review.
Chemical companies, acid traders and new promoters use it to size the plant and raise a term loan; banks use it to test whether the plant can repay.
Also known as: sulphuric acid plant project report, project report on sulphuric acid, sulphuric acid business plan, DPR for a sulphuric acid plant.
Sulphuric acid manufacturing plant cost in India
Our sample report models a 42 MT per day sulphur-burning plant, or 13,860 MT a year over 330 working days. It starts at 60% of capacity and reaches 80% in Year 5, selling 98% acid at ₹13,100 per MT before GST.
Plant and machinery is the largest cost, because the converter, waste heat boiler and acid towers are needed whatever the output. That is why acid plants carry a heavy capital cost for each rupee of sales, and why profit improves quickly as utilisation rises.
| Land and site development | 114.75 |
|---|---|
| Building and civil works | 226.59 |
| Plant and machinery | 560.58 |
| Other fixed assets | 82.01 |
| Contingencies | 39.36 |
| Preliminary and pre-operative | 25.58 |
| Working capital margin | 41.44 |
| Total | 1,090.31 |
| Promoter's contribution (25%) | 272.58 |
|---|---|
| Term loan from bank (75%) | 817.73 |
| Cash credit limit (separate) | 124.30 |
| Total project cost | 1,090.31 |
Term loan at 10.5% with a 6-month moratorium and 54 monthly instalments; DSCR is lowest at 1.22 in Year 2. All figures are illustrative.
Sulphuric acid manufacturing process
A sulphur-burning plant makes acid by the contact process in eight linked stages. The whole train runs continuously, so a trip in one section, such as the blower, stops the plant.
- Sulphur melting and filtering
Solid sulphur is melted in steam-heated pits at about 140 °C and filtered, because ash left in the melt fouls the catalyst.
- Air drying
The main blower pulls air through a drying tower irrigated with 98% acid, since moisture in the gas corrodes the equipment downstream.
- Sulphur burning
Molten sulphur is sprayed into a brick-lined furnace and burnt in the dry air to form a hot gas rich in sulphur dioxide.
- Heat recovery
A waste heat boiler cools the gas to the converter inlet temperature and raises steam for melting sulphur, plant heating or sale.
- Catalytic conversion
The gas passes through a converter with several beds of vanadium pentoxide catalyst, where sulphur dioxide is oxidised to sulphur trioxide.
- Double absorption
Sulphur trioxide is absorbed in 98% acid in an intermediate tower, the gas returns for a final conversion pass and then enters the final absorption tower.
- Tail gas cleaning
Exit gas goes through a candle filter and an alkali scrubber to control acid mist and sulphur dioxide before a stack of at least 30 metres.
- Cooling and storage
Hot product acid is cooled in plate coolers, adjusted to 98% strength with water and stored in mild steel tanks for tanker loading.
Which route suits a new sulphuric acid plant?
Sulphuric acid in India comes from four feeds. The choice is usually made for you by what raw material and buyers you can reach, not by process preference.
| Sulphur burning, DCDA | Burns bought-in elemental sulphur. The standard route for a standalone plant and the one in our sample report; produces surplus steam. |
|---|---|
| Smelter off-gas | Copper and zinc smelters capture sulphur dioxide from roasting and convert it to acid as a by-product. Not open to a new promoter without a smelter. |
| Spent acid regeneration | Decomposes used acid from alkylation, nitration or pickling back into fresh acid. Suits a site next to the user that returns its spent acid. |
| Oleum and acid concentration | Extra absorption towers make oleum (fuming acid) for sulphonation and dye users; adds equipment cost and a separate set of buyers. |
Steam is part of the product: a sulphur-burning plant gives off heat at every stage. A report that values the steam only when there is a real user for it, in-house or next door, gives a lender a truer picture of profit.
Sulphur and other raw materials for sulphuric acid
Each tonne of 98% acid needs roughly a third of a tonne of sulphur, so sulphur drives cost more than anything else. Much of it is imported or bought from Indian refineries. In July 2026 the Government noted that sulphur imports were hit by the West Asia conflict, with higher freight and price swings.
| Raw material | Share of cost | Year 3 (₹ lakh) |
|---|---|---|
| Elemental sulphur | 88% | 516.89 |
| Lime and caustic soda for scrubbing | 5% | 29.37 |
| Vanadium pentoxide catalyst make-up | 4% | 23.49 |
| Demineralised process water | 3% | 17.62 |
| Total | 100% | 587.37 |
In our sample report raw materials are 46.2% of sales. Your report should test how a rise in sulphur price changes profit and DSCR.
Machinery for a sulphuric acid plant
The converter is the costliest single item in our sample, followed by the waste heat boiler. Acid-wetted parts need alloy steel, brick lining or PTFE, which is why quotations vary widely between vendors.
| Machine | What it does | Sample cost (₹ lakh) |
|---|---|---|
| Sulphur melter and filter | Melts and cleans solid sulphur | 56.06 |
| Sulphur furnace with burner | Burns sulphur to sulphur dioxide | 44.85 |
| Waste heat boiler and economisers | Cools the gas and raises steam | 84.09 |
| Converter with catalyst beds | Oxidises sulphur dioxide to trioxide | 100.90 |
| Drying and absorption towers, acid pumps | Dry the air and absorb the trioxide | 89.69 |
| Plate type acid coolers | Remove heat from circulating acid | 44.85 |
| Main air blower with drive | Moves air and gas through the plant | 44.84 |
| Tail gas scrubber and stack | Cleans exit gas before release | 39.24 |
| Acid storage tanks and loading | Stores acid and fills tankers | 56.06 |
| Total plant and machinery | 560.58 | |
Costs are the sample report's estimates for a 42 MT per day plant. Get current quotations before you finalise.
Licences, standards and GST for a sulphuric acid plant
Approvals take longer for an acid plant than for most chemical units, so start them alongside the project report. These are the product-specific items, checked as of October 2026.
| Pollution category | Red category under the CPCB classification of January 2025 (basic inorganic chemicals, including manufacture of acid). Consent to establish and to operate from the State Pollution Control Board. |
|---|---|
| Emission standards | Schedule I of the Environment (Protection) Rules sets sulphur dioxide and acid mist limits for sulphuric acid plants by capacity, a stack of at least 30 metres and online pH meters on scrubbers. |
| Hazardous chemicals | Sulphuric acid and oleum are listed in the MSIHC Rules, 1989. Sulphur dioxide and trioxide inventories decide whether an on-site emergency plan and safety report apply. |
| Product standard | IS 266 covers technical, battery, chemically pure and analytical reagent grades, with limits on iron, lead, arsenic and other impurities. |
| GST and HSN | HSN 2807. GST cut from 18% to 5% in the September 2025 reforms. |
| Acid sales | Retail and over-the-counter sales need a buyer log and stock declarations under each state's Poisons Possession and Sale Rules. |
| Factory and fire | Factory licence or registration under the applicable labour law, and fire NOC; rules vary by state. |
Who buys sulphuric acid in India?
Fertiliser plants are the anchor buyers: single super phosphate and phosphoric acid both need large volumes of acid. The GST cut on sulphuric acid to 5% in September 2025 was made to correct the inverted duty structure for fertiliser makers and lower their input cost.
Industrial users take smaller lots but often pay better and more regularly. Most buy 98% technical grade by road tanker; battery and laboratory buyers want the purer IS 266 grades.
- Single super phosphate and phosphoric acid plants
- Detergent (LABSA) and alum manufacturers
- Steel pickling, galvanising and metal finishing units
- Lead-acid battery makers
- Water and effluent treatment plants
- Chemical traders supplying smaller users
Location decides the market: acid is dense, corrosive and needs special tankers, so freight eats margin fast. A plant sited near a cluster of fertiliser or detergent units can sell on annual contracts that a distant supplier cannot match.
Mistakes that weaken a sulphuric acid project report
- Taking one sulphur price for five years
Sulphur prices swing with refinery output and shipping. A report without a sulphur price sensitivity hides the main risk from the lender.
- Counting steam income with no buyer
Steam only earns money if something uses it. Credit it in the projections only for a named in-house use or a neighbour with a supply agreement.
- Pricing acid at a distant market's rate
The ex-works price a buyer pays falls with distance because the buyer bears tanker freight. Use prices delivered to your own catchment.
- No allowance for catalyst and annual shutdown
Catalyst beds are screened and topped up, and acid coolers, pumps and brick lining need planned shutdowns. Leaving these out overstates output.
- Sizing the scrubber for normal running only
Start-ups and upsets push sulphur dioxide up. A tail gas system sized only for steady running risks consent conditions in a Red category plant.
How NPCS helps you plan a sulphuric acid plant
- Capacity and routeChoose plant size, acid and oleum mix and heat recovery to suit your buyers and sulphur supply.
- Plant and vendor costsCompare converter, boiler and tower packages and build the cost from current quotations.
- Bank-ready project reportProjections, DSCR and sulphur price sensitivity in the format your lender or investor wants.
- Approvals and layoutPlant layout, stack and storage plan, and the Red category consent and hazardous chemical checklist for your state.
NPCS's client list includes 269 assignments in specialty chemicals, two of them for sulphuric acid projects. The NPCS project team, led by founder Ajay Kumar Gupta, has prepared project reports since 1994.
What's inside the sulphuric acid sample report
- Introduction
- Uses and applications
- Market potential
- Manufacturing process
- Raw materials
- Plant and machinery
- Land, building and utilities
- Manpower
- Licences and approvals
- Project cost and means of finance
- Working capital
- Projected profitability
- Cash flow statement
- Projected balance sheet
- Depreciation
- Term loan repayment
- Debt service coverage
- Break-even analysis
- Financial ratios
- Key assumptions
- Conclusion
- Monthly loan repayment schedule
19 pages, five-year projections, illustrative figures.
Open sample reportFree sample or a report for your project?
| What you get | Free sample | NPCS report for your project |
|---|---|---|
| Capacity and location | Typical unit | Your capacity, site and state |
| Figures | Illustrative | Built on current prices and quotations |
| Machinery suppliers and quotations | No | Yes |
| Market survey for your region | No | Yes |
| Bank or scheme format (PMEGP, term loan) | No | Yes |
| Use for a loan application | No | Yes |
Real NPCS sulphuric acid project reports
These are sulphuric acid project reports NPCS has prepared, with the plant capacity, total capital investment, rate of return and break-even worked out in each. Costs have moved since some were written, so we bring any of them up to date for your capacity and location.
| Project report | Plant capacity | Total investment | Rate of return | Break-even | Action |
|---|---|---|---|---|---|
| Sulphuric Acid | 100 MT/Day | ₹1.77 crore | 80% | 32% | Get this report |
| Sulphuric Acid Plant including Mfg. of Chlorosulphonic Acid, 23% Oleum | Sulphuric Acid 98%: 150 MT/Day Oleum 65%: 50MT/Day Oleum 23%: 60 MT/Day Chlorosulphonic Acid: 48 MT/Day Steam, : 100 MT/Day | ₹23.57 crore | 50% | 27% | Get this report |
| Sulphuric Acid | Sulphuric Acid 98%: 220 MT/Day Oleum 65%: 74 MT/Day Oleum 23%: 88 MT/Day Steam by product: 127, MT/Day | ₹50.68 crore | 25% | 44% | Get this report |
| Setting Up a Sulphuric Acid | Sulphuric Acid 98% , 150 MT Per Day Oleum 65% 50.5 MT Per Day Oleum 23% 60 MT Per Day Steam by Product 86.6 MT Per Day | ₹66 crore | 30% | 36% | Get this report |
Figures as worked out in each NPCS report. Total investment includes plant and machinery, land and building, and working capital.
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Sulphuric Acid project report: frequently asked questions
How much does it cost to set up a sulphuric acid plant in India?
It depends mostly on daily capacity and how much heat recovery you install. Our sample report models a 42 MT per day sulphur-burning plant at ₹1,090 lakh, of which plant and machinery is ₹561 lakh. Plants of 100 MT per day and above, with steam turbines, cost several times more. Your project report works out the cost from current vendor quotations.
What raw material is used to make sulphuric acid?
Elemental sulphur is the main raw material, together with air and water. About a third of a tonne of sulphur goes into each tonne of 98% acid. In our sample report sulphur is 88% of raw material cost, with scrubbing chemicals, catalyst make-up and demineralised water making up the rest.
Which process is used in a sulphuric acid plant?
New plants use the contact process with double contact double absorption (DCDA). Sulphur is burnt to sulphur dioxide, converted to sulphur trioxide over vanadium pentoxide catalyst and absorbed in strong acid in two stages. The second stage raises conversion enough to meet the sulphur dioxide limits for the stack.
Is a sulphuric acid plant profitable?
It can be, but margins are thin and depend on the gap between sulphur cost and acid price. In our illustrative sample, a 42 MT per day plant earns a 13% return on investment in Year 3. It breaks even at 43% of capacity and pays back in about 4.6 years. Steam sales or captive use improve these figures.
What is the GST rate and HSN code for sulphuric acid?
Sulphuric acid falls under HSN heading 2807. Its GST rate was cut from 18% to 5% under the reforms recommended by the GST Council in September 2025, to correct the inverted duty structure for fertiliser makers. Confirm the rate for your exact supply with your tax adviser before quoting prices.
Which licences are needed to start a sulphuric acid plant?
Sulphuric acid manufacture falls in the Red category for pollution control, so you need consent to establish and consent to operate from the State Pollution Control Board. You also need a factory licence, fire approval, compliance with the hazardous chemical rules, Udyam and GST registration, and records of acid sales under state poison rules.
Is the sulphuric acid project report PDF free, and can I use it for a loan?
The sample is free to view and download as a PDF. It is an illustrative report that shows the format and depth of an NPCS report. Its figures are representative, not from a real project, so do not submit it to a bank. For a loan, NPCS prepares a report for your own capacity, site and lender.
Sources and references
- GST reforms in chemicals and fertilizers sector (factsheet)Press Information Bureau, Government of India, checked Oct 2026
- Classification of sectors into Red, Orange, Green, White and Blue categories (January 2025)Central Pollution Control Board (copy hosted by Maharashtra Pollution Control Board), checked Oct 2026
- Revised categorisation of industries (R/O/G/W/B)Maharashtra Pollution Control Board, checked Oct 2026
- Manufacture, Storage and Import of Hazardous Chemical Rules, 1989Punjab Pollution Control Board, checked Oct 2026
- Environment (Protection) Rules, 1986, Schedule I, entry 23: sulphuric acid plantsMinistry of Environment and Forests, Government of India (via FAOLEX), checked Oct 2026
- IS 266: Sulphuric acid, specificationBureau of Indian Standards, checked Oct 2026
- Lok Sabha unstarred question 755: regulation of acid saleLok Sabha Secretariat, checked Oct 2026
- Measures to safeguard fertilizer supplies amid West Asia tensionsPress Information Bureau, Ministry of Chemicals and Fertilizers, checked Oct 2026
The NPCS project team, led by Ajay Kumar Gupta
This page and its sample report are prepared and reviewed by the NPCS project team, which has written techno-economic feasibility studies and detailed project reports since 1994.
Ajay Kumar Gupta founded Niir Project Consultancy Services (NPCS) and leads the organisation. With 40 years of experience in MSME project consulting, he has built the team that has delivered more than 28,000 project reports for clients worldwide, helping entrepreneurs plan and finance profitable manufacturing businesses.
- Published
- Last updated
- Next review
- Oct 2027
- Reviewed by
- NPCS project team
This page is reviewed every 12 months, or sooner when scheme limits, GST rates, BIS rules or pollution categories change. The sample report is illustrative: its figures are generated from industry-typical ratios for a unit of this size, checked so every statement balances, and are not taken from any client project.