What is a activated alumina project report?
An activated alumina project report is a detailed project report (DPR) for a plant that turns aluminium hydroxide into porous alumina balls used as a desiccant and adsorbent. It sets out the process, kilns and machinery, raw material yield, market, project cost, means of finance, five-year projections, DSCR and break-even that a lender needs.
Promoters and chemical companies use it to size the plant and raise a term loan; banks use it to judge whether the plant can repay.
Also known as: project report on activated alumina, activated alumina business plan, activated alumina balls plant DPR, activated alumina manufacturing plant feasibility report.
Activated alumina manufacturing plant cost in India: the sample economics
Our sample report models a plant of 11 metric tonnes per day (3,630 MT per year) working 330 days a year. It starts at 60% of capacity and reaches 80% in Year 5, selling at ₹1,18,000 per MT ex-factory.
Plant and machinery is the largest block at ₹789.83 lakh, nearly half the project cost, because the plant runs two separate thermal stages. Trade receivables are the largest current asset, since industrial buyers expect about 45 days of credit.
| Land and site development | 189.87 |
|---|---|
| Building and civil works | 391.28 |
| Plant and machinery | 789.83 |
| Other fixed assets | 70.29 |
| Contingencies | 59.06 |
| Preliminary and pre-operative | 37.51 |
| Working capital margin | 106.11 |
| Total | 1,643.95 |
| Promoter's contribution (25%) | 410.99 |
|---|---|
| Term loan from bank (75%) | 1,232.96 |
| Cash credit limit (separate) | 318.33 |
| Total project cost | 1,643.95 |
Term loan at 10.5% with a 6-month moratorium and 72 monthly instalments; minimum DSCR 1.52. All figures are illustrative.
Activated alumina manufacturing process, step by step
Most ball-grade activated alumina is made by the rapid calcination and rehydration route. The quality of the finished balls is decided mostly in the forming and ageing stages, not in the kiln.
- Feed preparation
Aluminium hydroxide powder is checked for particle size and soda content. A narrow size spread gives balls with more large pores and better crush strength.
- Flash calcination
The powder passes through hot gas at about 700–900 °C for a few seconds. It loses most of its combined water and becomes a transition alumina that can take water back.
- Ball forming
Disc pan granulators roll the calcined powder with a water spray into balls of 2–6 mm. Pan speed, tilt and spray rate set the size and density.
- Ageing and rehydration
Green balls are held in steam or hot water at 80–100 °C for several hours. Rehydration bonds the particles and gives the balls their strength.
- Drying and activation
The balls are dried, then activated in a rotary kiln at about 400–500 °C. This opens a surface area of roughly 200–350 square metres per gram.
- Screening and testing
Vibrating screens split the balls into size fractions. Samples are tested for BET surface area, crush strength, attrition loss and water adsorption.
- Hot packing
Activated balls pick up moisture from the air within hours, so they are packed warm into sealed HDPE-lined bags or steel drums.
Which process route should an activated alumina plant use?
The route decides the grades you can sell, the machinery list and the effluent load. Choose it before the project cost is fixed, because changing it later means a different plant.
| Flash calcination and ball forming | Bayer aluminium hydroxide is flash calcined, rolled into balls and rehydrated. The usual route for desiccant, defluoridation and general adsorbent grades, and the one modelled in our sample report. |
|---|---|
| Granular (crushed and sized) | Calcined lumps are crushed and screened. Fewer machines, but the irregular grains give lower crush strength and more dust, so it suits low-cost water treatment rather than air dryers. |
| Precipitation or gel route | Alumina is precipitated from sodium aluminate or aluminium salts, then shaped and calcined. Purer, with controlled pores for catalyst carriers, but with more chemical handling and effluent to treat. |
| Impregnated grades | Finished balls are soaked in a chemical such as potassium permanganate or an alkali to remove specific gases. An add-on line that sells at a higher price than plain balls. |
Start simple, add grades later: many new plants begin with one ball route for dryer and water treatment buyers, then add impregnation once they have steady customers.
Raw materials for activated alumina
Aluminium hydroxide is bought from Bayer alumina refineries, mainly in eastern and central India. Each tonne of it holds only about 0.65 tonne of alumina. Allowing for the water the balls keep, a plant buys roughly 1.4–1.5 tonnes per tonne of product (indicative).
| Raw material | Share of cost | Year 3 (₹ lakh) |
|---|---|---|
| Aluminium hydroxide (alumina trihydrate) | 86% | 1,094.64 |
| Binder and pore-forming additives | 6% | 76.37 |
| Sodium hydroxide and process chemicals | 4% | 50.92 |
| Process water treatment chemicals | 4% | 50.91 |
| Total | 100% | 1,272.84 |
Raw materials are 42.5% of sales in the sample. Freight from the refinery is a real part of the landed cost of aluminium hydroxide.
Machinery for an activated alumina plant
The flash calciner is the costliest item in the sample, followed closely by the rotary activation kiln. Together they make up almost half of the machinery cost.
| Machine | What it does | Sample cost (₹ lakh) |
|---|---|---|
| Flash calciner with hot gas generator | Turns aluminium hydroxide into rehydratable alumina | 189.56 |
| Air classifier mill | Grinds and classifies the calcined powder | 78.99 |
| Disc pan granulators | Roll the powder into balls | 94.78 |
| Steam ageing and rehydration vessels | Build ball strength | 78.98 |
| Rotary activation kiln | Activates the balls at controlled temperature | 173.76 |
| Belt dryer | Dries aged balls before the kiln | 47.39 |
| Vibrating screens and sizing | Separate size fractions and fines | 39.49 |
| Bag filters and dust collection | Capture alumina dust from calciner and kiln | 47.39 |
| Laboratory with BET analyser | Tests surface area and strength of each batch | 39.49 |
| Total plant and machinery | 789.83 | |
Costs are the sample report's estimates for an 11 MT per day plant. Get current quotations before you finalise.
Manpower and utilities for an activated alumina plant
The calciner and kiln run round the clock, so the plant works in three shifts. Power and fuel come to 16.0% of sales in the sample, the second largest running cost after aluminium hydroxide, because the material is heated twice.
| Staff group | People | Annual cost (₹ lakh) |
|---|---|---|
| Management, supervision and administration | 19 | 66.12 |
| Skilled workers and operators | 44 | 97.68 |
| Semi-skilled and unskilled workers | 62 | 89.28 |
| Total | 125 | 253.08 |
Utilities to plan for: fuel for the hot gas generator and kiln, a steam supply for ageing, a DG set for the kiln drive, and soft water for forming.
Licences, approvals and the BIS standard for activated alumina
BIS published IS 9700:2025, the second revision of the activated alumina specification, which replaces the withdrawn 1991 edition. Buyers and tenders usually ask for test results against it.
| Business registration | Udyam registration where the unit qualifies as an MSME, and GST registration |
|---|---|
| Pollution board consent | Consent to establish and to operate from the State Pollution Control Board, covering stack emissions from the calciner and kiln, dust control and any effluent |
| Factory licence | Under the factory and labour laws of the state, since the plant works in shifts with a large workforce |
| Product standard | IS 9700:2025, Activated alumina, specification (second revision), as the quality reference for buyers |
| Power and fire | Industrial power sanction for the connected load, and a fire NOC where the state requires it for fuel storage |
Requirements vary by state. Confirm the pollution category and any boiler or fuel storage licence with the state authorities before applying.
Who buys activated alumina in India?
Industrial buyers replace adsorbent beds every few years, so a plant sells to a steady replacement trade as well as to new projects. Dryer makers and refineries buy on specification and want test certificates with every lot.
Drinking water is a second market. Activated alumina removes fluoride, and CSIR-CMERI has developed and deployed a domestic defluoridation module that uses ferrite-impregnated activated alumina for fluoride-affected villages.
- Compressed air and gas dryer manufacturers
- Refineries, petrochemical and fertiliser plants
- Hydrogen peroxide producers
- Defluoridation filter and water treatment companies
- Transformer oil reconditioning firms and power utilities
- Adsorbent traders and maintenance contractors
Where a domestic plant wins: imported balls compete on price, so an Indian unit wins on steady lot-to-lot quality, quick supply during a planned bed change and help with loading and regeneration.
Mistakes that weaken an activated alumina project report
- Taking one tonne of feed per tonne of product
Aluminium hydroxide loses about a third of its weight as water. A 1:1 ratio under-states raw material cost by a wide margin.
- Costing fuel for only one kiln
The material is heated twice, in the flash calciner and in the activation kiln. Missing one stage makes power and fuel look far cheaper than it is.
- Ignoring off-size balls and fines
Screening rejects part of every batch. Fines can go back to forming, but they take capacity, so saleable output is lower than kiln throughput.
- One selling price for every grade
Desiccant, defluoridation and catalyst carrier grades sell at different prices. Revenue should follow a realistic grade mix, not the best price.
- Leaving out the testing laboratory
Buyers reject lots without BET surface area and crush strength results. A plant without its own lab cannot sell to dryer makers or refineries.
How NPCS helps you set up an activated alumina plant
- Route and grade mixChoose the process route, ball sizes and grades to suit your buyers and budget.
- Calciner, kiln and suppliersCompare flash calciner, kiln and granulator options and collect quotations.
- Bank-ready project reportProjections, DSCR, working capital and sensitivity to aluminium hydroxide and fuel prices.
- Layout and approvalsPlant layout, utility load, pollution control and the approvals list for your state.
NPCS's published client list includes 2 assignments for activated alumina among 31 in ceramics and glass. The NPCS project team, led by founder Ajay Kumar Gupta, has prepared project reports since 1994.
What's inside the activated alumina 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 activated alumina project reports
These are activated alumina 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 |
|---|---|---|---|---|---|
| Activated Alumina | 3.0 Ton/Day | ₹88 lakh | 80% | 29.9% | Get this report |
| Activated Alumina | 6 MT/Day | ₹1.5 crore | 29% | 69% | 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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Activated Alumina project report: frequently asked questions
What is the cost of an activated alumina manufacturing plant in India?
A plant of 10–20 MT per day needs an indicative ₹15–30 crore, including land, building, calciner, activation kiln and working capital margin. Our sample report models an 11 MT per day plant at ₹1,643.95 lakh, of which plant and machinery is ₹789.83 lakh. Your own cost depends on the forming route, fuel, site and the grades you plan to sell.
What raw material is used to make activated alumina?
Fine aluminium hydroxide, also called alumina trihydrate, from Bayer process refineries is the main raw material. It makes up 86% of raw material cost in our sample report. Because about a third of its weight leaves as water during calcination, a plant buys roughly 1.4–1.5 tonnes of aluminium hydroxide for each tonne of product, an indicative ratio.
How is activated alumina made?
Aluminium hydroxide is flash calcined in hot gas for a few seconds, then rolled into balls with water in disc pan granulators. The balls are aged in steam or hot water to gain strength, dried and activated in a rotary kiln at about 400–500 °C. Finally they are screened by size, tested for surface area and crush strength, and packed airtight.
What is activated alumina used for?
Its main use is as a desiccant in heatless and heat-regenerated compressed air and gas dryers. It also removes fluoride and arsenic from drinking water and regenerates the working solution in hydrogen peroxide plants. Refineries use it as a catalyst carrier in sulphur recovery units and to purify transformer oil and hydrocarbon streams.
Activated alumina vs silica gel: which suits a compressed air dryer?
Activated alumina is preferred where the bed may meet liquid water or high regeneration temperatures, because the balls keep their strength and resist cracking. Silica gel holds more moisture at high humidity but can shatter on contact with liquid water. Many dryer makers use alumina alone or as a guard layer under silica gel or molecular sieve.
Is activated alumina manufacturing profitable?
In our illustrative sample, an 11 MT per day plant earns a 13% return on investment in Year 3. It breaks even at about 48% of capacity and pays back in about 4.7 years. Actual results depend on aluminium hydroxide price, fuel cost in the two kiln stages, the share of premium grades sold and how much off-size material is recycled.
Is the sample report free and can I use it for a loan?
Yes, 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 it should not be submitted to a bank. For a loan, NPCS prepares a report for your own capacity, site and lender.
Sources and references
- IS 9700:2025 Activated alumina, specification (second revision)Bureau of Indian Standards, checked Oct 2026
- IS 9700:1991 Activated alumina, specification (first revision), withdrawnBureau of Indian Standards, checked Oct 2026
- Development and deployment of a defluoridation module for domestic useCSIR-Central Mechanical Engineering Research Institute, 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.