What is a n paraffin project report?
An n paraffin project report is a detailed project report (DPR) for a plant that separates straight-chain paraffins from kerosene on molecular sieves and sells them in narrow carbon cuts. It sets out the feed supply, process, machinery, approvals, project cost, means of finance, five-year projections, DSCR and break-even that a lender or investor checks.
Promoters and chemical companies use it to size the plant and raise a term loan; banks and investors use it to judge whether the unit can repay.
Also known as: normal paraffin project report, n-paraffin plant DPR, n paraffin business plan, project report on n paraffin.
N paraffin manufacturing plant cost in India: sample economics
Our sample report models a standalone plant making 10 metric tonnes of n paraffin per day, or 3,300 MT a year over 330 working days. It starts at 60% of capacity, reaches 70% in Year 3 and 80% in Year 5, and sells at ₹89,500 per MT before GST.
| Land and site development | 96.08 |
|---|---|
| Building and civil works | 183.26 |
| Plant and machinery | 519.90 |
| Other fixed assets | 87.40 |
| Contingencies | 35.16 |
| Preliminary and pre-operative | 23.04 |
| Working capital margin | 66.99 |
| Total | 1,011.83 |
| Promoter's contribution (25%) | 252.96 |
|---|---|
| Term loan from bank (75%) | 758.87 |
| Cash credit limit (separate) | 200.96 |
| Total project cost | 1,011.83 |
Term loan at 10.5% with a 6-month moratorium and 54 monthly instalments; lowest yearly DSCR 2.11. All figures are illustrative.
N paraffin manufacturing process, step by step
Kerosene is a mix of straight-chain, branched and ring hydrocarbons. The plant keeps only the straight-chain part, which is why the heart of the process is a sieve, not a reactor.
- Feed cutting
Kerosene is distilled to a heart cut in the carbon range your buyers want, for example C10 to C13 for LAB and solvents or C14 to C17 for chlorination.
- Hydrotreating
The cut passes over a catalyst with hydrogen, then a guard bed, to strip sulphur and nitrogen compounds that would poison the sieve.
- Adsorption
Hot feed flows through beds of 5A molecular sieve. Its pores, about 5 angstrom wide, admit straight chains and turn away branched and aromatic molecules.
- Desorption
A desorbent pushes the trapped n paraffin out of the sieve, while valves switch each bed between adsorbing and regenerating.
- Desorbent recovery
Extract and raffinate streams are distilled to recover the desorbent for reuse and to return the denormalised kerosene.
- Fractionation
The extract is split into narrow cuts by carbon number, so one plant can serve LAB, solvent and chlorinated paraffin buyers.
- Testing and dispatch
Each lot is checked on a gas chromatograph for n paraffin content, aromatics and carbon spread, then stored in tanks and sent by road tanker.
Which technology route suits an n paraffin plant?
Several routes give straight-chain paraffins. For a plant in India that buys kerosene, molecular sieve adsorption is the practical choice; the others matter mainly when you compare imports or older plant offers.
| Vapour-phase molecular sieve | Fixed beds that cycle between adsorption and desorption. Simpler to build at small and mid scale; the route modelled in our sample. |
|---|---|
| Liquid-phase simulated moving bed | Rotary valve moves feed and desorbent points around a long sieve column. Higher purity and recovery, used in large refinery-linked LAB complexes; licensed technology. |
| Urea adduction | Urea forms crystals around straight chains, which are then broken with heat. An older route with solids handling and lower purity; rarely chosen for new plants. |
| Fischer-Tropsch synthesis | Builds paraffins from syngas made from gas or coal. Gives aromatic-free, sulphur-free product but only at very large gas-to-liquids scale. |
Decide this early: the route fixes the hydrogen need, the sieve charge and whether you pay a technology licence fee, and each changes project cost and the lender's view of risk.
Raw materials for n paraffin and their cost
Kerosene is 88% of raw material cost in our sample, and raw materials take 46.2% of sales. The sample prices the feed net of the raffinate sent back to the supplier, so the terms of that swap matter as much as the kerosene price itself.
| Raw material | Share of cost | Year 3 (₹ lakh) |
|---|---|---|
| Kerosene feed, net of raffinate returned | 88% | 840.66 |
| Molecular sieve adsorbent | 5% | 47.76 |
| Desorbent make-up | 4% | 38.21 |
| Hydrogen and guard bed media | 3% | 28.66 |
| Total | 100% | 955.29 |
Year 3 runs at 70% of capacity. Kerosene must be low in aromatics and sulphur; confirm the feed specification in your supply contract.
Machinery for an n paraffin plant
The molecular sieve adsorbers and their switching valves are the largest single item in the sample, at ₹129.98 lakh. Valve reliability decides how many hours the plant runs between stoppages.
| Equipment | What it does | Sample cost (₹ lakh) |
|---|---|---|
| Kerosene pre-fractionation column | Cuts the feed to the target carbon range | 83.18 |
| Feed hydrotreater and guard bed | Removes sulphur and nitrogen | 77.99 |
| Molecular sieve adsorbers with switching valves | Hold and release the straight chains | 129.98 |
| Desorbent recovery and extract columns | Recycle desorbent, purify extract | 77.98 |
| Fired heater and heat exchangers | Heat the feed and recover heat | 62.39 |
| Storage tanks and transfer pumps | Hold kerosene, product and raffinate | 46.79 |
| DCS and field instrumentation | Runs the bed cycle and safety trips | 25.99 |
| Gas chromatograph laboratory | Tests purity and carbon spread | 15.60 |
| Total plant and machinery | 519.90 | |
Costs are the sample report's estimates for a 10 MT per day plant. Get current quotations before you finalise.
Utilities and manpower for an n paraffin plant
An n paraffin plant runs round the clock, because the sieve beds cycle continuously and restarts waste feed and fuel. Plan utilities and shift staffing for continuous duty.
| Power and fuel | ₹136.14 lakh in Year 3 in our sample, 6.6% of sales, covering the fired heater, column reboilers, pumps and compressors |
|---|---|
| Hydrogen | Needed for hydrotreating; bought in cylinders or tube trailers at this scale, or taken from a nearby refinery or hydrogen plant |
| Cooling water | Cooling tower for column condensers and product coolers |
| Nitrogen | Blanketing of storage tanks and purging before maintenance |
| Manpower | 51 people in our sample, including 18 skilled operators for shift work; Year 1 wage cost ₹115.98 lakh |
Licences and approvals for an n paraffin plant
Because the feed and product are petroleum, PESO approvals sit at the centre of the list. Start them before land is bought, since they fix safety distances on the site.
| Petroleum processing | PESO guidance says petroleum may be blended, reformed, cracked or refined only in a refinery approved by the Chief Controller of Explosives; confirm how your separation process is treated |
|---|---|
| Petroleum storage | Kerosene is on PESO's list of petroleum that needs a storage licence; tank farm layout and distances follow the Petroleum Rules, 2002 |
| Pollution board consent | Consent to establish and operate from the State Pollution Control Board; confirm the category with the board under the CPCB classification of 2025 |
| Factory and fire | Factory licence under the Factories Act and a fire NOC; state rules apply |
| Business registration | GST registration, and Udyam registration where the unit qualifies as an MSME |
Checked against PESO documents in October 2026. Rules change; confirm current requirements with each authority.
Who buys n paraffin in India?
Linear alkyl benzene (LAB) for detergents is the largest use, but the big LAB makers produce their own n paraffin. Indian Oil's Vadodara LAB plant, for example, extracts it from refinery kerosene in its own unit. A standalone plant therefore sells mostly to buyers who need narrow cuts in smaller lots.
- Chlorinated paraffin makers, for heavier C14 to C17 cuts
- Solvent, aerosol and printing ink formulators
- Metalworking fluid and lubricant blenders
- Chemical traders and export buyers
Watch the chlorinated paraffin market: medium-chain chlorinated paraffins, made from C14 to C17 n paraffin, were added to Annex A of the Stockholm Convention in May 2025. How this reaches Indian buyers depends on national rules, so a report should not lean on one buyer group.
Mistakes that weaken an n paraffin project report
- No firm kerosene supply
The plant depends on one or two refiners. Without a supply and raffinate return agreement, a lender sees the whole project as unfunded risk.
- Leaving the raffinate out of the numbers
Most of the kerosene leaves as raffinate. If the report does not say who takes it and at what price, the feed cost is wrong.
- Counting on LAB plants as buyers
Large LAB producers make n paraffin in-house. Sales plans should rest on chlorinated paraffin, solvent and fluid buyers with sample approval.
- Ignoring sieve and catalyst replacement
Molecular sieve and hydrotreating catalyst lose activity and need replacing. Leaving them out understates running cost and overstates DSCR (debt service coverage ratio).
- Fixing the site before PESO talks
Safety distances for tanks and process units can rule out a plot. Late changes add cost and delay commissioning.
How NPCS helps you plan an n paraffin plant
- Feed and product slateMatch kerosene supply to the carbon cuts your buyers want, and value the raffinate.
- Technology and equipmentCompare sieve routes and get quotations for adsorbers, columns and hydrotreating.
- Bank-ready project reportProjections, DSCR, break-even and sensitivity to the kerosene and n paraffin price gap.
- Approvals and layoutPESO, pollution and factory approvals, with a layout that respects safety distances.
NPCS has prepared project reports and feasibility studies for specialty chemical plants since 1994, and its client list records 269 assignments in specialty chemicals.
What's inside the n paraffin 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
18 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 |
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N Paraffin project report: frequently asked questions
What is the cost of an n paraffin manufacturing plant in India?
Our sample report models a 10 MT per day plant at ₹1,011.83 lakh, of which plant and machinery is ₹519.90 lakh. A larger plant, or one that must build its own hydrogen supply, costs more. Refinery-integrated plants that feed LAB units are far bigger. Your project report works out the cost for your capacity, feed source and site.
What is n paraffin made from?
N paraffin is separated from kerosene, a refinery cut. The kerosene is hydrotreated to remove sulphur and nitrogen, then passed over 5A molecular sieve, which holds the straight-chain molecules. A desorbent releases them, and the extract is split into cuts such as C10 to C13 and C14 to C17. The rest of the kerosene leaves as raffinate.
What is n paraffin used for?
Most n paraffin goes into linear alkyl benzene, the raw material for detergent surfactants. Heavier cuts are chlorinated to make chlorinated paraffins used with PVC and in leather and metalworking. Other buyers use it as an odourless solvent, an aerosol carrier and a base for metalworking fluids. Each use asks for a different carbon range and purity.
Is n paraffin manufacturing profitable?
In our illustrative sample, a 10 MT per day plant earns a 34% return on investment in Year 3. It breaks even at 31% of capacity and pays back in about 2.7 years. Real profit depends mostly on the price gap between kerosene and n paraffin, the value you get for the raffinate, and whether you hold long-term buyers.
Do I need a PESO licence for an n paraffin unit?
Yes, plan for one. Kerosene is on the PESO list of petroleum that needs a storage licence. PESO guidance also says petroleum may be refined or reformed only in a refinery approved by the Chief Controller of Explosives. Discuss the process and tank farm with PESO before you finalise the site and layout.
How is n paraffin different from paraffin wax and liquid paraffin?
All three are paraffinic hydrocarbons, but they are different products. N paraffin is a light, straight-chain liquid separated from kerosene. Paraffin wax is a solid made by de-oiling heavier petroleum fractions. Liquid paraffin is a refined white mineral oil used in pharma and cosmetics. Each has its own process, buyers and project report.
Is the n paraffin sample report free, and can I use it for a bank loan?
The sample PDF is free to view and download. It is an illustrative report that shows the format and depth of an NPCS report. Its figures are representative and not taken from a real project, so it should not be submitted to a bank. For a loan, NPCS prepares a report for your own capacity, feed contract and location.
Sources and references
- List of petroleum products requiring a licence under the Petroleum Rules, 2002Petroleum and Explosives Safety Organisation (PESO), checked Oct 2026
- Revised FAQs on the Petroleum Rules, 2002Petroleum and Explosives Safety Organisation (PESO), checked Oct 2026
- Linear Alkyl Benzene (LAB)Indian Oil Corporation Limited, checked Oct 2026
- Revised categorisation of industries (CPCB directions, February 2025)Maharashtra Pollution Control Board, checked Oct 2026
- Results of COP-12 of the Stockholm Convention (May 2025)Ministry of Economy, Trade and Industry, Japan, 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.