What is a basic chromium sulphate project report?
A basic chromium sulphate project report is a detailed project report (DPR) for a plant that reduces sodium dichromate into the green chrome tanning powder sold to tanneries. It sets out the process, raw materials, machinery, effluent control, project cost, means of finance, five-year projections, DSCR and break-even that a lender checks before funding.
Chemical entrepreneurs and leather chemical makers use it to size the plant and raise a term loan; banks use it to test whether the plant can repay.
Also known as: BCS project report, basic chrome sulphate plant DPR, chrome tanning agent project report, basic chromium sulphate business plan.
Basic chromium sulphate manufacturing plant cost in India
The sample report models a 14 MT per day plant, or 4,620 MT per year, running 330 days and moving from 60% capacity in Year 1 to 80% in Year 5. Selling price is taken at ₹86,500 per MT before GST.
| Land and site development | 143.35 |
|---|---|
| Building and civil works | 289.69 |
| Plant and machinery | 748.17 |
| Other fixed assets | 79.83 |
| Contingencies | 51.89 |
| Preliminary and pre-operative | 32.82 |
| Working capital margin | 94.38 |
| Total | 1,440.13 |
| Promoter's contribution (25%) | 360.03 |
|---|---|
| Term loan from bank (75%) | 1,080.10 |
| Cash credit limit (separate) | 283.14 |
| Total project cost | 1,440.13 |
Why the return is moderate: raw materials take 56% of sales in the sample, almost all of it sodium dichromate. The lowest DSCR in any year is 1.34, so a lender will test how a rise in dichromate price moves that number.
Term loan at 10.5% with a 6-month moratorium and 54 monthly instalments. All figures are illustrative.
Basic chromium sulphate manufacturing process
Most Indian plants make the product by reducing sodium dichromate in sulphuric acid and then spray drying the liquor. The chemistry is simple, but control of the reduction step decides whether the powder passes a tannery's test.
- Dissolving dichromate
Sodium dichromate is dissolved in water in a lined tank to a liquor of fixed strength, checked by density.
- Acidification
Sulphuric acid is dosed into the liquor in the reactor while it is stirred, in the ratio the target basicity needs.
- Reduction
Molasses or sugar solution is fed slowly. The reaction gives off heat and changes orange hexavalent chromium into green trivalent chromium.
- Hexavalent chromium test
Each batch is held and tested until no hexavalent chromium is left, because tanneries reject any trace.
- Basicity adjustment
Soda ash is added when a customer orders a grade above the standard 33% basic product.
- Filtration
A filter press removes insoluble matter and unreacted organic residue from the green liquor.
- Spray drying
The liquor is atomised into hot air and dries to a free-flowing green powder in seconds.
- Sieving and packing
The powder is sieved to size and packed in 25 kg HDPE bags with liners to keep out moisture.
Which route should a basic chromium sulphate plant use?
The choice of reducing agent and acid source shapes raw material cost, emissions control and how the plant fits next to other chromium chemicals. These are the main options a project report compares.
| Molasses or sugar reduction | The common route for stand-alone Indian plants. Needs careful feed control, as an overdose leaves organic matter in the powder. |
|---|---|
| Sulphur dioxide reduction | SO2 gas reduces the dichromate directly and leaves sodium sulphate in the product. Suits plants with a cheap SO2 source and good gas handling. |
| By-product acid | A plant beside a chromic acid or saccharin unit can use the sodium bisulphate liquor or spent acid from those processes in place of part of the fresh sulphuric acid. |
| Spray drying | Gives the fine powder tanneries prefer. It is the largest single machine in the sample and the main user of fuel. |
The sample report is costed on the molasses route with spray drying.
Raw materials for basic chromium sulphate
Sodium dichromate dihydrate carries about 51% chromium as Cr2O3. So a powder with 24–26% Cr2O3 needs roughly half a tonne of dichromate per tonne of product. One pre-feasibility report filed by an Indian unit lists dichromate supply from Odisha, Telangana, Turkey, Russia and South Africa.
| Raw material | Share of cost | Year 3 (₹ lakh) |
|---|---|---|
| Sodium dichromate | 78% | 1,222.43 |
| Sulphuric acid | 12% | 188.07 |
| Molasses or sugar (reducing agent) | 6% | 94.03 |
| Soda ash (basicity adjustment) | 4% | 62.69 |
| Total | 100% | 1,567.22 |
Machinery for a basic chromium sulphate plant
Acid and chromium liquor attack plain steel, so reactors, tanks and pipelines are rubber-lined, FRP or acid-resistant steel. The spray dryer and the effluent and fume system together take 44% of the machinery cost in the sample.
| Machine | What it does | Sample cost (₹ lakh) |
|---|---|---|
| Spray dryer with hot air generator | Dries the liquor to powder | 224.45 |
| Rubber-lined reduction reactors | Hold the acid reduction under stirring | 149.64 |
| Fume scrubber and effluent treatment plant | Treat acid fumes and wash water | 104.74 |
| Dissolving and liquor storage tanks | Prepare and hold dichromate liquor | 74.82 |
| Pumps, piping and process controls | Move and meter acid and liquor | 59.85 |
| Acid storage and dosing system | Stores and doses sulphuric acid | 44.89 |
| Filter press | Removes insoluble matter | 44.89 |
| Sieving and bag filling machine | Sizes and packs the powder | 44.89 |
| Total plant and machinery | 748.17 | |
Costs are the sample report's estimates for a 14 MT per day plant. Get current quotations before you finalise.
Approvals and standards for a basic chromium sulphate plant
Pollution approvals take the longest for this product, because the plant handles hexavalent chromium and strong acid. Plan for them before you place machinery orders.
| Business registration | Udyam (MSME) and GST registration, plus factory registration under the labour law that applies in your state |
|---|---|
| Pollution board consent | Consent to establish and operate from the State Pollution Control Board. CPCB's Red list includes basic chemicals and their derivatives, so confirm the category for your site with the Board |
| Hazardous waste | Authorisation under the Hazardous and Other Wastes Rules, 2016 for effluent sludge and any chromium-bearing residue. Schedule I has no entry written for this product, so the Board decides which entries apply |
| Product standard | IS 6301:2013, Basic chromium sulphate (for tanning), covers the product as flakes or powder and is the usual reference in buyer specifications |
| Environmental clearance | Check with the State Pollution Control Board or the state environment authority whether it applies to your capacity and location |
Who buys basic chromium sulphate and what they check
Almost all of the product goes to tanneries, where chrome tanning is still the main way to make wet-blue leather. Demand sits in the leather clusters of Tamil Nadu, Uttar Pradesh, West Bengal and Punjab and moves with footwear and leather goods orders. Traders and leather chemical formulators also buy in bulk.
Buyers order against a written specification. A 2021 enquiry from Balmer Lawrie, a public sector company, for 80 MT delivered at Manali in Chennai, asked for the following:
- Chromium as Cr2O3 of at least 24.0%
- Basicity of 30–35%
- Nil hexavalent chromium
- Moisture of no more than 10%
- pH of 3.0 ± 0.2 in a 6% solution
- Green powder in 25 kg HDPE bags, on 45 days' credit
Where a new plant wins: tanneries switch suppliers only after trial batches tan well. Plan the first months for small trial lots and steady quality from lot to lot, not for full sales.
Mistakes that weaken a basic chromium sulphate project report
- Pricing all output at the top grade
Price follows chromium content and basicity. A report that sells every tonne at the 26% grade price overstates revenue and DSCR.
- No test for dichromate price swings
Dichromate is 78% of raw material cost in the sample. A 10% rise in its price should be run through profit and DSCR.
- Under-sizing the scrubber and effluent plant
Acid fumes and chromium in wash water decide whether consent is granted. A cheap system costs more later, when the Board asks for upgrades.
- Leaving out spray dryer fuel
The dryer evaporates most of the water in the liquor. Power and fuel are 7.9% of sales in the sample, and a low figure hides a real cash cost.
- Ignoring tannery credit
Buyers expect about 45 days' credit. In the sample, trade receivables are the largest part of current assets, so the cash credit limit must cover them.
How NPCS helps you plan a basic chromium sulphate plant
- Route and grade choiceCompare molasses and SO2 reduction and the basicity grades your buyers order.
- Dichromate costingWork out dichromate use per tonne and test profit against price changes.
- Bank-ready project reportProjections, DSCR and working capital in the format your lender asks for.
- Approvals and effluent planLayout, scrubber and effluent plant sizing, and the consent list for your state.
NPCS's client list records 269 assignments in specialty chemicals, and the NPCS project team has prepared reports on chemical plants for entrepreneurs, banks and companies since 1994.
What's inside the basic chromium sulphate 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 |
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Basic Chromium Sulphate project report: frequently asked questions
What is the cost of a basic chromium sulphate manufacturing plant in India?
Our sample report models a 14 MT per day plant at a total project cost of ₹1,440 lakh. That includes ₹748 lakh of plant and machinery and ₹94.38 lakh of working capital margin. The spray dryer and the effluent treatment plant drive most of the machinery bill. Your own cost depends on capacity, route, land and how much drying and effluent capacity you install.
What raw materials are used to make basic chromium sulphate?
Sodium dichromate is the main raw material, reduced with molasses or sugar in the presence of sulphuric acid. Soda ash is added when a higher basicity is needed. In our sample report sodium dichromate is 78% of raw material cost, so its price matters more than any other input when you test profit and DSCR.
What is basic chromium sulphate used for?
It is used mainly as the tanning agent that turns hides and skins into wet-blue leather, which is then finished for footwear, garments, bags and upholstery. Smaller quantities go into textile dyeing as a mordant and into other chromium chemicals and pigments. Tanneries are by far the biggest buyers, so plant location usually follows the leather clusters.
What does 33% basicity mean in basic chromium sulphate?
Basicity shows how much of the chromium is bound to hydroxide rather than sulphate. A 33% basic grade is the standard tanning powder; higher basicities of around 42% or 50% are made by adding soda ash. One public sector buyer's 2021 enquiry asked for 30–35% basicity with at least 24% chromium as Cr2O3.
Is basic chromium sulphate manufacturing profitable?
In our illustrative sample, a 14 MT per day plant earns a 16% return on investment in Year 3. It breaks even at 43% of capacity and pays back in about 4.2 years. Margins are thinner than in many specialty chemicals because sodium dichromate is costly. Profit depends on dichromate buying, chrome yield, dryer fuel cost and tannery credit terms.
Which pollution approvals does a basic chromium sulphate plant need?
You need consent to establish and consent to operate from the State Pollution Control Board, which also decides the plant's category. Effluent treatment sludge and any chromium-bearing residue need authorisation under the Hazardous and Other Wastes Rules, 2016. Ask the Board early whether environmental clearance applies to your capacity and site, as rules differ by state.
Is the basic chromium sulphate project report PDF free, and can I use it for a loan?
The sample PDF is free to view and download. It shows the format and depth of an NPCS report, but its figures are representative and not based on a real project. So it should not be submitted to a bank. For a loan, NPCS prepares a project report on basic chromium sulphate for your own capacity, route and location.
Sources and references
- IS 6301:2013 Basic chromium sulphate (for tanning), specificationBureau of Indian Standards, checked Oct 2026
- IS 6301:2013 scope and referencesBureau of Indian Standards, checked Oct 2026
- Enquiry for basic chromium sulphate (fine), January 2021Balmer Lawrie and Co. Ltd (Government of India enterprise), checked Oct 2026
- Pre-feasibility report for a chromic acid, basic chromium sulphate and saccharin unit, BilaspurEnvironmental clearance portal, Ministry of Environment, Forest and Climate Change, checked Oct 2026
- Categorisation of industrial sectors under Red as per CPCB criteriaState Pollution Control Board, Odisha, checked Oct 2026
- Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016: schedulesDelhi Pollution Control Committee, 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.