What is a bleaching earth project report?
A bleaching earth project report is a detailed project report (DPR) for a plant that treats bentonite clay with sulphuric acid to make activated bleaching earth for oil refineries. It sets out the process, machinery, raw materials, market, project cost, means of finance, five-year projections, DSCR and break-even that a lender needs.
Promoters 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: activated bleaching earth project report, bleaching clay plant DPR, acid activated clay project report, bleaching earth business plan.
Bleaching earth manufacturing plant cost in India
The sample report models a 24 MT per day plant running 330 days a year, or 7,920 MT a year at full capacity. It starts at 60% utilisation and reaches 80% in Year 5, selling at ₹19,100 per MT ex-GST.
Plant and machinery is just under half of the project cost. The sample allows ₹168.16 lakh for building and civil works; budget within it for acid-proof floors and drains under the reactors, washing tanks and filter press.
| Land and site development | 46.89 |
|---|---|
| Building and civil works | 168.16 |
| Plant and machinery | 312.63 |
| Other fixed assets | 42.71 |
| Contingencies | 24.04 |
| Preliminary and pre-operative | 14.86 |
| Working capital margin | 33.80 |
| Total | 643.09 |
| Promoter's contribution (25%) | 160.77 |
|---|---|
| Term loan from bank (75%) | 482.32 |
| Cash credit limit (separate) | 101.40 |
| Total project cost | 643.09 |
Term loan at 10.5% with a 6-month moratorium and 54 monthly instalments; lowest yearly DSCR 1.96. All figures are illustrative.
Bleaching earth manufacturing process
Activated bleaching earth is made in a batch-and-continuous mix: activation runs in batches, while filtering, drying and milling run as a line. The acid step decides quality; the drying step decides fuel cost.
- Clay preparation
Calcium bentonite is crushed and blunged with water into a slurry of even consistency, so the acid reaches every particle.
- Acid activation
The slurry is digested with sulphuric acid in rubber-lined or FRP reactors, heated by steam to near 100°C for a few hours. The acid leaches out part of the aluminium, iron and magnesium and opens up the pores.
- Washing
The activated clay is washed in stages with fresh water to bring residual acidity down to the grade's target.
- Filtration
A filter press separates the wash water and gives a wet cake; the acidic filtrate goes to the neutralisation plant.
- Drying
A flash dryer brings the cake to a controlled moisture, because over-dried earth loses bleaching activity and wet earth cakes in the bag.
- Milling and classifying
A pulveriser with an air classifier grinds the earth so most of it passes a 200 mesh sieve. This fineness balances bleaching speed against filtration rate at the refinery.
- Testing and packing
Each batch is checked for bleaching power on a standard oil, acidity, moisture and oil retention, then packed in HDPE bags.
Natural fuller's earth or acid-activated bleaching earth?
Two products sell as bleaching earth. Most new plants make the acid-activated grade, because refiners of palm and soybean oil need its higher activity; the natural grade suits a smaller, simpler unit.
| Raw clay | Natural: calcium bentonite or fuller's earth used as mined. Activated: calcium bentonite that responds well to acid, chosen after laboratory trials |
|---|---|
| Process | Natural: drying and grinding only. Activated: acid digestion, washing, filtration, drying and milling |
| Bleaching activity | Natural: modest, so refineries need higher doses. Activated: much higher, so less earth and less oil loss per tonne of oil |
| Main running costs | Natural: clay, fuel and power. Activated: sulphuric acid, clay, steam, drying fuel and effluent treatment |
| Effluent | Natural: dust only. Activated: acidic wash water that must be neutralised, leaving a calcium sulphate sludge |
| Competing products | Activated bauxite and magnesium silicate also bleach oils and set a ceiling on price for some uses |
Test the clay before the plant: bentonite from two pits in the same district can activate very differently. Laboratory activation of samples from your source is the first step, before reactor size or capacity is fixed.
Raw materials for bleaching earth
Sulphuric acid, not clay, is the biggest raw material cost in our sample, at half of the total. Raw materials come to 40.7% of sales in Year 3. Clay is cheap at the pit but heavy, so freight from the deposit is often a large part of its landed price.
| Raw material | Share of cost | Year 3 (₹ lakh) |
|---|---|---|
| Bentonite clay (calcium montmorillonite) | 42% | 180.94 |
| Sulphuric acid | 50% | 215.41 |
| Lime for effluent neutralisation | 8% | 34.47 |
| Total | 100% | 430.82 |
Bentonite in India comes mainly from Kachchh and Bhavnagar in Gujarat and Barmer in Rajasthan (Indian Bureau of Mines).
Machinery for a bleaching earth plant
Everything that touches the acid slurry needs acid-resistant lining or construction. The activation reactors are the costliest item, followed by the flash dryer.
| Machine | What it does | Sample cost (₹ lakh) |
|---|---|---|
| Clay crusher and blunger | Breaks lumps and makes the clay slurry | 25.01 |
| Acid-resistant activation reactors | Digest clay with acid under steam heat | 75.03 |
| Counter-current washing tanks and pumps | Wash out spent acid and salts | 31.26 |
| Filter press | Separates wash water, gives wet cake | 31.26 |
| Flash dryer with hot air generator | Dries the cake to set moisture | 56.28 |
| Pulveriser with air classifier | Grinds to mesh size | 37.52 |
| Acid storage and dosing | Holds and meters sulphuric acid | 15.63 |
| Effluent neutralisation plant | Neutralises acidic filtrate with lime | 25.01 |
| Bag filling and stitching | Packs earth in HDPE bags | 15.63 |
| Total plant and machinery | 312.63 | |
Costs are the sample report's estimates for a 24 MT per day line. Get current quotations before you finalise.
Utilities and manpower
A bleaching earth plant uses a lot of water for washing and a lot of heat for drying. Plan both before you choose a site.
| Power and fuel | ₹81.48 lakh in Year 3 of the sample, about 7.7% of sales, for the dryer's hot air generator, the mill, pumps and the filter press |
|---|---|
| Steam | Needed to hold the activation reactors near boiling point through each batch |
| Water | Several washes per batch; recycling part of the weak wash liquor to the blunger cuts fresh water use |
| Effluent | Acidic filtrate is neutralised with lime; the sludge needs a storage area and an approved disposal route |
| Manpower | 26 people in the sample, with a Year 1 wage bill of ₹58.80 lakh, including a laboratory chemist for batch testing |
Licences and standards for a bleaching earth plant
| Business registration | Udyam (MSME) registration and GST registration |
|---|---|
| Pollution board consent | Consent to establish and operate from the State Pollution Control Board; the category for acid activation varies by state, so confirm it before buying land |
| Product standard | IS 1965:1972 for bleaching earths used on vegetable oils, with sampling and tests under IS 1035:1972 |
| Clay supply | Bentonite is a minor mineral, so a captive pit needs a lease under state rules; otherwise a supply contract with a leaseholder |
| Acid storage | Check whether your sulphuric acid storage quantity brings the site under the hazardous chemical rules |
| Factory and boiler | Factory licence where thresholds apply, and boiler registration if a steam boiler is installed |
Market for bleaching earth in India
Bleaching earth follows edible oil refining. Every batch of palm, soybean, sunflower and rice bran oil passes through a bleaching stage, where the earth removes colour, traces of soap, metals and oxidation products before deodorising.
Refiners judge earth on three things: bleaching power, how much oil it holds back, and how fast it filters. A new plant usually sells through trial lots first, then wins repeat orders once its grade proves steady.
- Edible oil refineries, the largest buyers
- Vanaspati and specialty fat makers
- Mineral, lube and transformer oil processors
- Used oil re-refiners
- Wax and biodiesel feedstock processors
- Chemical traders and export buyers
Where a new plant wins: clay is heavy and refineries cluster near ports and oilseed belts. A plant near both the bentonite source and a refinery cluster saves freight in both directions.
Mistakes that weaken a bleaching earth project report
- Fixing capacity before testing the clay
Without laboratory activation of your own bentonite, yield and bleaching power are guesses, and so is every revenue figure.
- Pricing at imported premium grade
A standard Indian grade sells well below high-activity imported earth; using the import price inflates sales and DSCR.
- Leaving out effluent and sludge
Lime, neutralisation equipment and sludge disposal are real costs, and a missing effluent plan delays pollution consent.
- Under-stating drying fuel
Wet cake carries a lot of water, and the dryer burns fuel for every kilo of it; low fuel figures overstate profit.
- Ignoring refinery trial periods
Approval can take months, and refineries pay on credit; trade receivables are the biggest current asset in our sample, so working capital must allow for them.
How NPCS helps you set up a bleaching earth plant
- Clay and capacityPlan laboratory activation trials on your bentonite and size the plant to the result.
- Process and machineryCompare reactor lining, dryer and mill options and collect supplier quotations.
- Bank-ready project reportProjections, DSCR, working capital and sensitivity to acid and fuel prices in your lender's format.
- Effluent and approvalsNeutralisation plan, plant layout and the approvals list for your state.
NPCS's client list shows 3 assignments for bleaching earth and 269 in specialty chemicals, for entrepreneurs, banks and companies since 1994.
What's inside the bleaching earth 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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Bleaching Earth project report: frequently asked questions
What is the cost of a bleaching earth manufacturing plant in India?
Our sample report models a 24 MT per day plant at a total project cost of ₹643 lakh, of which plant and machinery is ₹313 lakh. As an indicative guide, a smaller 8–12 MT per day unit may need about ₹2.5–4 crore. Land, the reactor material, dryer type and effluent system move the figure most, so your report prices your own capacity and site.
What raw materials are used to make bleaching earth?
The two main inputs are calcium bentonite clay and sulphuric acid. In our sample report sulphuric acid is 50% of raw material cost and bentonite 42%, with lime for neutralising acidic wash water making up the remaining 8%. Fuel for drying, power, water and HDPE bags are the other running costs.
What is the difference between fuller's earth and activated bleaching earth?
Fuller's earth is a natural clay that is only dried and ground before use, so its bleaching power is modest. Activated bleaching earth is bentonite that has been digested with sulphuric acid, washed, dried and milled. The acid treatment raises its surface area and acidity, so a refinery needs less earth to reach the same oil colour.
Is bleaching earth manufacturing profitable?
In our illustrative sample, a 24 MT per day plant earns a 30% return on investment in Year 3. It breaks even at about 31% of capacity and pays back in about 2.9 years. Real results depend on the bleaching power of your clay, acid prices, drying fuel cost and how quickly refineries approve your grade after trials.
Which BIS standard applies to bleaching earth?
IS 1965:1972 is the Indian standard for bleaching earths of Indian origin used to bleach vegetable oils, and IS 1035:1972 gives the methods of sampling and test. Refineries also test every lot against their own reference earth. Spent bleaching earth has its own specification, IS 12039:2022, as a raw material for soap and detergent makers.
Who buys bleaching earth?
Edible oil refineries are the largest buyers, using it in the bleaching stage for palm, soybean, sunflower and rice bran oils. Vanaspati and specialty fat makers, mineral and transformer oil processors, used oil re-refiners and wax producers also buy it. Most buy on trial orders first and then place repeat orders by the truckload.
Is the sample project report on bleaching earth 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 it should not be submitted to a bank. For a loan, NPCS prepares a report for your own capacity, clay source and location.
Sources and references
- IS 1965:1972 Specification for bleaching earths of Indian origin used for bleaching vegetable oilsBureau of Indian Standards, checked Oct 2026
- IS 1035:1972 Methods of sampling and test for bleaching earthsBureau of Indian Standards, checked Oct 2026
- IS 12039:2022 Spent bleaching earth, specificationBureau of Indian Standards, checked Oct 2026
- Indian Minerals Yearbook 2020: BentoniteIndian Bureau of Mines, Ministry of Mines, checked Oct 2026
- Indian Minerals Yearbook 2021: Fuller's EarthIndian Bureau of Mines, Ministry of Mines, 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.