What is a calcium propionate project report?
A calcium propionate project report is a detailed project report (DPR) for a plant that makes this food and feed preservative. The plant neutralises propionic acid with calcium hydroxide and spray dries the solution. The report sets out the process, machinery, raw materials, approvals, project cost, five-year projections, DSCR and break-even.
Promoters use it to size the plant and raise a term loan, and lenders and investors use it to judge whether the plant can repay from its own cash flow.
Also known as: calcium propionate manufacturing plant project report, project report on calcium propionate, calcium propionate business plan, DPR for calcium propionate plant.
Calcium propionate plant cost and economics
Our sample report models a 4.2 MT per day plant that runs 330 days a year, giving 1,386 MT of annual capacity. It starts at 60% utilisation in Year 1 and reaches 80% in Year 5, selling at ₹1,78,000 per MT before GST.
Plant and machinery is just over half of the project cost, and the spray drying line is the largest single item in it. Land and building stay modest because the plant fits in one process hall with a tank farm.
| Land and site development | 55.00 |
|---|---|
| Building and civil works | 164.02 |
| Plant and machinery | 447.16 |
| Other fixed assets | 70.65 |
| Contingencies | 30.56 |
| Preliminary and pre-operative | 19.18 |
| Working capital margin | 57.94 |
| Total | 844.51 |
| Promoter's contribution (25%) | 211.13 |
|---|---|
| Term loan from bank (75%) | 633.38 |
| Cash credit limit (separate) | 173.80 |
| Total project cost | 844.51 |
Term loan at 10.5% with a 6-month moratorium and 54 monthly instalments; minimum DSCR 1.31 in Year 2. All figures are illustrative.
Calcium propionate manufacturing process
Most Indian plants make calcium propionate by neutralising bought-in propionic acid with lime, then drying the solution. The chemistry is simple; the skill lies in purity, colour and steady moisture from lot to lot.
- Lime slurry preparation
Food grade calcium hydroxide is stirred into demineralised water so it reacts evenly and leaves no grit in the product.
- Neutralisation
Propionic acid is dosed slowly into the slurry in an SS 316 reactor. The reaction gives off heat, so dosing and cooling are controlled until the pH is near neutral.
- Carbon treatment and filtration
Activated carbon takes out colour and odour, and a filter press removes unreacted lime, insolubles and the iron that would tint the powder.
- Spray drying
The clear solution is atomised into hot air; the powder falls out in the chamber and cyclone, and a bag filter catches the fines.
- Sifting and blending
The powder is sifted to a uniform size and blended into lots, so each bag a bakery receives behaves the same in the mixer.
- Testing and packing
Each lot is checked for assay, moisture and lead, then packed in HDPE bags with a food grade liner, because the powder picks up moisture from air.
Spray drying or crystallisation: which route suits your plant?
After neutralisation there are two ways to turn the solution into powder. The choice changes the machinery list, the steam load and the product you can sell.
| Point | Spray drying | Crystallisation and drying |
|---|---|---|
| How the powder forms | The whole solution is atomised and dried in one step | Calcium propionate crystallises from a concentrated solution, is centrifuged and then dried |
| Energy | Higher, because all the water is evaporated in the dryer | Lower per kg dried, but needs an evaporator, crystalliser and mother liquor recycle |
| Product | Fine, free-flowing powder that blends easily into flour and premixes | Granular or crystalline product with less dust |
| Purity control | Depends on clean raw materials and good filtration, as everything in solution ends up in the powder | Crystallisation leaves part of the impurities in the mother liquor |
| Usual fit | Small and mid-size plants, and the route used in our sample report | Larger plants and buyers who ask for granular grade |
Comparison is qualitative. The project report sizes either route for your capacity and target grade.
Raw materials for calcium propionate
In theory, 1 kg of calcium propionate needs about 0.80 kg of propionic acid and 0.40 kg of calcium hydroxide. Propionic acid is bought in drums or tankers from producers and traders, and its price sets most of your cost.
| Raw material | Share of cost | Year 3 (₹ lakh) |
|---|---|---|
| Propionic acid | 92% | 903.38 |
| Food grade calcium hydroxide | 7% | 68.73 |
| Activated carbon and filter aid | 1% | 9.82 |
| Total | 100% | 981.93 |
Watch the lime grade: lead and iron in the product come largely from the lime and process water. A cheap industrial lime can fail the lead limit for food grade even when the assay looks fine.
Machinery for a calcium propionate plant
Wetted parts that touch propionic acid are usually SS 316, because the acid attacks mild steel. The spray dryer is the costliest item and sets the plant's daily output.
| Machine | What it does | Sample cost (₹ lakh) |
|---|---|---|
| Neutralisation reactor, SS 316, with agitator | Reacts acid with lime slurry under control | 80.49 |
| Propionic acid storage and dosing | Stores acid and meters it into the reactor | 44.71 |
| Lime slurry preparation tank | Mixes lime with water before reaction | 26.83 |
| Filter press with carbon treatment vessel | Removes colour, insolubles and metals | 35.77 |
| Spray dryer with cyclone and bag filter | Turns solution into powder and catches fines | 134.15 |
| Acid vapour scrubber | Captures acid vapour from the reactor and tanks | 26.83 |
| Vibro sifter and powder blender | Sizes and blends each lot | 26.83 |
| Bag filling and sealing machine | Packs lined HDPE bags by weight | 17.89 |
| Steam boiler and utilities | Heat for the dryer and process | 53.66 |
| Total plant and machinery | 447.16 | |
Costs are the sample report's estimates for a 4.2 MT per day line. Get current quotations before you finalise.
Manpower and utilities for a 4.2 MT per day plant
The sample plant runs with 52 people across shifts, since the reactor and dryer run continuously once started. Power and fuel, much of it steam for the dryer, come to 5.4% of sales, or ₹93.03 lakh in Year 3.
| Role | People | Monthly wage (₹) | Annual cost (₹ lakh) |
|---|---|---|---|
| Management, supervision and administration | 8 | 32,500 | 31.20 |
| Skilled workers and operators | 18 | 20,500 | 44.28 |
| Semi-skilled and unskilled workers | 26 | 13,500 | 42.12 |
| Total | 52 | 117.60 |
A plant this size also needs a quality chemist and a small lab for assay, moisture and lead testing, which buyers ask to see during supplier audits.
Licences and standards for calcium propionate
Food grade calcium propionate is a regulated food additive (INS 282), so food law applies on top of the usual factory approvals. As of October 2026:
| FSSAI licence | Food additive makers above 2 MT per day need a central licence; smaller units take a state licence. The 4.2 MT per day sample plant falls in the central tier |
|---|---|
| FSSAI product specification | INS 282: not less than 98% calcium propionate on a dry basis, moisture not more than 5.0% and lead not more than 5 mg/kg |
| BIS standard | IS 6031:2023, Calcium propionate, food grade: specification, which replaced IS 6031:1997 |
| Pollution board consent | Consent to establish and operate from the State Pollution Control Board; the category comes from the state's list for chemical units |
| Factory and boiler | Factory licence under the state rules, and boiler registration with the state boiler inspectorate if a steam boiler is installed |
| Business registration | Udyam registration and GST registration |
Rules and thresholds change. Confirm with FSSAI, BIS and your state authorities before applying.
Who buys calcium propionate in India?
Packaged bread drives most food grade demand. Bakers add it to the dough, usually at 0.1–0.3% of flour weight. It keeps sliced bread, buns and pav free of mould through distribution and several days on a shop shelf.
Feed is the second market. Feed mills and premix makers buy feed grade material to stop mould in poultry and cattle feed, which takes a lower price but larger, steadier lots.
- Industrial bread, bun and pav bakeries
- Bread improver and bakery ingredient blenders
- Poultry and cattle feed mills
- Feed premix and additive companies
- Food ingredient traders and distributors
- Export buyers of food and feed additives
How a new plant gets in: large bakeries approve a supplier only after sample trials and a plant audit. Plan for several months of trial lots and keep feed grade sales going while food approvals come through.
Mistakes that weaken a calcium propionate project report
- Using one old propionic acid quote
Acid is 92% of raw material cost in our sample, so a 10% rise moves profit more than any other cost. The report should test it and show the DSCR still holds.
- Taking theoretical yield as output
Fines lost in the dryer, filter cake and off-spec lots all cut saleable output below the chemistry; a report that ignores them overstates sales.
- Sizing the spray dryer on average output
The dryer is the most expensive machine and the bottleneck. Its evaporation rate must match the solution strength you plan to run, or the plant never reaches rated capacity.
- Booking bakery sales from Month 1
Supplier approval takes time, so first-year sales and working capital should allow for trial lots and a slower start.
- Treating food and feed grade as one product
Food grade needs an FSSAI licence, lot testing for lead and a cleaner lime, and sells at a different price. Mixing them hides the real margin.
How NPCS helps you plan a calcium propionate plant
- Capacity and grade mixSize the plant and split food and feed grade to match the buyers you can reach.
- Process route and machineryCompare spray drying with crystallisation and get quotations for SS 316 equipment.
- Bank-ready project reportProjections, DSCR, sensitivity to propionic acid price and working capital in your lender's format.
- Approvals and layoutFSSAI licence tier, pollution consent, boiler and plant layout for your state.
NPCS's published client list includes a calcium propionate assignment and 269 specialty chemicals assignments. The NPCS project team, led by founder Ajay Kumar Gupta, has prepared project reports since 1994.
What's inside the calcium propionate 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 |
Real NPCS calcium propionate project reports
These are calcium propionate 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 |
|---|---|---|---|---|---|
| Calcium Propionate | 500 kg/day | ₹91 lakh | 18% | 69% | Get this report |
| Calcium Propionate | 10 MT Per Day | ₹10.36 crore | 26% | 49% | Get this report |
| Calcium Propionate | 20 MT/Day | ₹15.69 crore | 29.3% | 41.6% | 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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Calcium Propionate project report: frequently asked questions
What is the calcium propionate manufacturing plant cost in India?
Our sample report models a 4.2 MT per day plant at ₹845 lakh, including ₹447 lakh of plant and machinery and ₹57.94 lakh of working capital margin. As an indicative guide, a 1–2 MT per day unit may need about ₹3–5 crore. Your own cost depends on capacity, drying route, land and whether you make food or feed grade.
What raw materials are used to make calcium propionate?
Propionic acid and food grade calcium hydroxide (hydrated lime), with demineralised water, activated carbon and filter aid. In theory about 0.80 kg of propionic acid and 0.40 kg of calcium hydroxide make 1 kg of product. In our sample report propionic acid is 92% of raw material cost, so its price drives profit.
How is calcium propionate manufactured?
Propionic acid is added slowly to a lime slurry in a stainless steel reactor until the solution is close to neutral. The solution is treated with activated carbon and filtered, then spray dried into a fine white powder. The powder is sifted, blended into lots, tested for assay, moisture and lead, and packed in lined HDPE bags.
Is calcium propionate manufacturing profitable?
In our illustrative sample, a 4.2 MT per day plant earns ₹130 lakh net profit in Year 3 on sales of ₹1,727 lakh. Return on investment is 15% and break-even is at 46% of capacity. Real margins depend on the spread between propionic acid cost and the price bakeries and feed mills pay.
Which licence is needed to manufacture calcium propionate?
Food grade calcium propionate is a food additive, so you need an FSSAI licence. FoSCoS criteria place additive makers above 2 MT per day under a central licence and smaller units under a state licence. The product should meet the FSSAI specification for INS 282 and IS 6031:2023. Pollution consent and factory approvals are also needed.
What is the difference between calcium propionate and sodium propionate?
Both are salts of propionic acid used against mould. Calcium propionate has little effect on yeast, so bakers prefer it for bread, buns and pav. Sodium propionate slows yeast fermentation and suits chemically leavened cakes, where calcium can disturb the leavening. Many plants can make both on the same reactor and dryer.
Is the sample report free and can I use it for a loan?
The sample 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 based on a real project, so do not submit it to a bank. For a loan, NPCS prepares a report for your own capacity, location and lender.
Sources and references
- IS 6031:2023 Calcium propionate, food grade: specificationBureau of Indian Standards, checked Oct 2026
- Food Safety and Standards (Food Products Standards and Food Additives) Regulations, Chapter 3: Substances added to foodFood Safety and Standards Authority of India, checked Oct 2026
- Kind of business: licence and registration eligibility criteriaFSSAI, Food Safety Compliance System (FoSCoS), 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.