What is a chlorinated paraffin wax project report?
A chlorinated paraffin wax project report is a detailed project report (DPR) for a plant that reacts heavy normal paraffin with chlorine gas to make CPW, a plasticiser and flame retardant. It sets out the process, chlorine and acid handling, machinery, approvals, project cost, finance plan, five-year projections, DSCR and break-even.
Promoters use it to size the plant, plan by-product sales and raise a term loan; lenders and investors use it to judge whether thin chemical margins can still repay the debt.
Also known as: CPW project report, chlorinated paraffin plant project report, chlorinated paraffin wax business plan, chloroparaffin plant DPR.
Chlorinated paraffin wax plant cost and economics
Our sample report models a 9.9 metric tonnes per day plant making liquid CPW, or 3,267 MT per year over 330 working days. It starts at 60% capacity, reaches 80% in Year 5 and sells at ₹66,000 per MT ex-factory.
CPW is a high-volume, low-margin chemical. Raw materials take 58.5% of sales in the sample, so a small change in paraffin price moves profit far more than any machinery saving.
| Land and site development | 52.57 |
|---|---|
| Building and civil works | 204.66 |
| Plant and machinery | 365.59 |
| Other fixed assets | 55.79 |
| Contingencies | 28.51 |
| Preliminary and pre-operative | 17.68 |
| Working capital margin | 50.96 |
| Total | 775.76 |
| Promoter's contribution (25%) | 193.94 |
|---|---|
| Term loan from bank (75%) | 581.82 |
| Cash credit limit (separate) | 152.87 |
| Total project cost | 775.76 |
Term loan at 10.5% with a 6-month moratorium and 54 monthly instalments; lowest yearly DSCR 1.22. All figures are illustrative and exclude income from hydrochloric acid.
Chlorinated paraffin wax manufacturing process
Most Indian plants make CPW in batches by thermal chlorination: chlorine gas is bubbled through hot paraffin until the product reaches the target chlorine content. The batch is judged by specific gravity, which rises as chlorine is added.
- Melting and charging
Heavy normal paraffin is heated to about 80–85 °C in a feed tank and charged to the chlorinator.
- Chlorination
Chlorine from tonners is vaporised and sparged into the reactor, with jacket cooling to hold temperature, because the reaction gives off heat.
- End-point check
Operators sample the batch and stop the chlorine when specific gravity matches the grade, for example about 52% chlorine for CPW-52.
- HCl absorption
Hydrogen chloride leaving the reactor is absorbed in water columns to give 27–30% hydrochloric acid; the tail gas passes through an alkali scrubber.
- Degassing
Air is blown through the hot product in a separate vessel to strip dissolved HCl and chlorine, which would otherwise corrode drums and cause odour.
- Stabilising and testing
A heat stabiliser is added and each batch is checked for chlorine content, viscosity, colour and heat stability.
- Packing
The product is filled in HDPE or MS drums, or sent in tankers to large PVC compounders.
Which CPW grade should a new plant make?
The same reactors can make several liquid grades by running chlorination longer or shorter. Grade choice decides chlorine use per tonne, batch time and which buyers you can serve.
| CPW-40 to CPW-45 | Lower chlorine and viscosity, shorter batches; used in metal working fluids and some PVC compounds |
|---|---|
| CPW-52 | The main volume grade for PVC cables, flooring and footwear; the grade modelled in our sample report |
| CPW-58 to CPW-60 | Higher chlorine and viscosity, better flame resistance; longer batches and more chlorine per tonne |
| CPW-70 (solid) | A resin-like flame retardant for plastics, rubber and paints; made from longer-chain wax by a different process, so it is a separate investment |
Check chain length early: CPW-52 made from C14 to C17 paraffin falls within the Stockholm Convention definition of medium-chain chlorinated paraffins (C14–17, 45% chlorine or more). Record the feed specification of every grade.
Raw materials: paraffin, chlorine and the acid by-product
Heavy normal paraffin is the costliest input, bought from refinery-linked suppliers in tankers. Chlorine is used in large quantities but is cheap per kg, and plants near a chlor-alkali unit pay less for it and its transport.
| Raw material | Share of cost | Year 3 (₹ lakh) |
|---|---|---|
| Heavy normal paraffin (C14 to C17) | 80% | 706.42 |
| Liquid chlorine | 15% | 132.45 |
| Heat stabilisers | 5% | 44.15 |
| Total | 100% | 883.02 |
Plan the acid before the plant: a government-filed pre-feasibility report for a Vapi CPW unit shows 1,811 kg of 30% hydrochloric acid per tonne of product. That acid needs storage, tankers and a buyer.
Machinery for a chlorinated paraffin wax plant
Everything that touches wet chlorine or HCl must resist corrosion, which is why reactors are glass-lined or lead-lined and absorbers use graphite, FRP or HDPE. The reactors are the largest machinery item in the sample.
| Equipment | What it does | Sample cost (₹ lakh) |
|---|---|---|
| Glass-lined chlorination reactors with jackets | Hold the paraffin while chlorine is sparged in and remove reaction heat | 116.99 |
| HCl absorption columns and alkali tail scrubber | Turn off-gas into hydrochloric acid and clean the vent | 65.81 |
| Chlorine tonner handling and vaporiser system | Lifts tonners and feeds dry chlorine gas at a steady rate | 43.87 |
| Product and HCl storage tanks | Store finished CPW and acid for dispatch | 40.21 |
| Air blowing and degassing vessel | Strips dissolved gases from the product | 32.90 |
| Paraffin melting and feed tanks | Heat and meter the paraffin charge | 21.94 |
| Cooling tower and chilling unit | Supply jacket cooling water | 21.94 |
| Drum filling and weighing station | Fills and weighs drums for dispatch | 21.93 |
| Total plant and machinery | 365.59 | |
Costs are the sample report's estimates for a 9.9 MT per day line. Get current quotations before you finalise.
Licences and approvals for a CPW plant
Chlorine storage and the acid off-gas drive most approvals. Settle them before you buy land, because some sites will not get consent for a chlorination unit.
| Business registration | Udyam and GST registration; factory licence and fire NOC as per state rules |
|---|---|
| Environmental clearance | CPW projects have been appraised under item 5(f), synthetic organic chemicals, of the EIA Notification 2006; check with the state or central authority whether your project needs it |
| Pollution board consent | Consent to establish and to operate from the State Pollution Control Board, with water and alkali scrubbers on the chlorinator vents |
| Chlorine tonner storage | Licence in Form F from PESO under the Gas Cylinders Rules, 2016 for storing toxic gas cylinders above the exempted quantity |
| Hazardous chemicals | Compliance with the Manufacture, Storage and Import of Hazardous Chemical Rules for chlorine storage, where applicable, including an on-site emergency plan |
Requirements vary by state and capacity. Confirm with the authorities before you apply; facts checked October 2026.
Market for chlorinated paraffin wax in India
Demand follows flexible PVC. Cable, flooring and footwear compounders use CPW to replace part of their primary plasticiser at lower cost and to improve flame resistance. Buyers approve a supplier on chlorine content, colour and heat stability, then negotiate mostly on price and credit.
Established producers are adding capacity. In June 2025, Lords Chloro Alkali told the stock exchange it would raise CPW capacity from 50 to 100 tonnes per day for about ₹30 crore, citing 80% utilisation. A new entrant competes on location, consistent quality and service to nearby compounders.
- PVC cable and wire compounders
- PVC flooring, footwear and leathercloth makers
- Metal working fluid and cutting oil blenders
- Leather chemical manufacturers
- Paint, sealant, adhesive and rubber goods makers
Rules are tightening abroad: in May 2025 the Stockholm Convention parties listed medium-chain chlorinated paraffins in Annex A with specific exemptions. Domestic PVC buyers are the core market; export plans need a grade-by-grade check.
Mistakes that weaken a chlorinated paraffin wax project report
- Counting only the chlorine that stays in the product
About half the chlorine leaves as hydrogen chloride, so chlorine use is roughly double the chlorine content of the CPW. Reports that miss this under-state cost.
- No buyer for the hydrochloric acid
Each tonne of CPW can yield close to two tonnes of 30% acid. Without a firm offtake, income turns into a neutralisation and disposal cost.
- Pricing every tonne at the best grade
Sales should follow the real grade mix and ex-factory prices to compounders, not trader quotes for higher-chlorine grades.
- Under-sizing scrubbers and chlorine safety
Weak vent scrubbing, no emergency kit for tonners or a missing PESO licence delays consent and start-up by months.
- Ignoring paraffin price swings
Paraffin is about 80% of raw material cost in the sample. Test a price rise in the projections and check DSCR still clears your lender's floor.
How NPCS helps you set up a chlorinated paraffin wax plant
- Capacity and grade mixSize reactors and batches for the CPW grades your buyers use.
- Chlorine and acid balanceWork out chlorine sourcing, HCl output and an offtake plan for the acid.
- Bank-ready project reportProjections, paraffin price sensitivity, DSCR and working capital in your lender's format.
- Approvals and layoutPlant layout, scrubbing system and the approvals list for your state, including PESO and pollution consent.
NPCS's client list includes 269 specialty chemicals assignments, among them a chlorinated paraffin wax project. The NPCS project team, led by founder Ajay Kumar Gupta, has prepared project reports since 1994.
What's inside the chlorinated paraffin wax 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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Chlorinated Paraffin Wax project report: frequently asked questions
What is the cost of a chlorinated paraffin wax manufacturing plant in India?
Our sample report models a 9.9 MT per day CPW plant at ₹775.76 lakh, including ₹365.59 lakh of plant and machinery and ₹204.66 lakh of buildings. Smaller batch units with fewer reactors cost less, and larger plants with captive chlorine cost more. Your own report works out the cost for your capacity, grade mix, site and chlorine source.
What raw materials are used to make chlorinated paraffin wax?
Heavy normal paraffin, a C14 to C17 fraction from kerosene, and chlorine gas are the two main inputs, with small amounts of heat stabiliser. A government-filed pre-feasibility report for a Vapi unit shows about 483 kg of paraffin and 1,063 kg of chlorine per tonne of CPW, because roughly half the chlorine leaves as hydrogen chloride.
What is chlorinated paraffin wax used for?
Most CPW goes into flexible PVC, especially cables, flooring, footwear and leathercloth, where it replaces part of the primary plasticiser and improves flame resistance. It is also used as an extreme pressure additive in cutting oils and metal working fluids, as a fat liquoring agent for leather, and in paints, sealants, adhesives and rubber goods.
Is chlorinated paraffin wax manufacturing profitable?
It can be, but margins are thin. In our illustrative sample, raw materials take 58.5% of sales, the plant earns a 14% return on investment in Year 3, breaks even at 47% of capacity and pays back in about 4.6 years. Paraffin buying, chlorine price and income from the hydrochloric acid by-product decide the real result.
Is chlorinated paraffin banned?
Not across the board. Short-chain chlorinated paraffins (C10 to C13) were listed under the Stockholm Convention in 2017, and in May 2025 the parties listed medium-chain grades (C14 to C17, 45% chlorine or more) in Annex A, with specific exemptions. Rules differ by country and grade, so check how each grade you plan to sell is treated in your target markets.
Which licences are needed for a CPW plant?
Beyond Udyam, GST, factory licence and fire NOC, a CPW plant needs consent to establish and operate from the State Pollution Control Board, a PESO licence in Form F if it stores chlorine tonners above the exempted quantity, and hazardous chemical compliance for chlorine. Some projects also need environmental clearance under item 5(f) of the EIA Notification 2006.
Is the chlorinated paraffin wax project report PDF free, and can I use it for a bank 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, location, chlorine source and lender.
Sources and references
- Pre-feasibility report, chlorinated paraffin wax expansion, Vapi (TOR application, April 2017)Ministry of Environment, Forest and Climate Change (environmental clearance portal), checked Oct 2026
- SOP for licences under the Gas Cylinders Rules, 2016Petroleum and Explosives Safety Organisation, checked Oct 2026
- Results of the 2025 Conferences of the Parties to the Basel, Rotterdam and Stockholm ConventionsMinistry of Economy, Trade and Industry, Japan, checked Oct 2026
- Decision SC-8/11: Listing of short-chain chlorinated paraffinsInforMEA (UN Environment Programme), Stockholm Convention COP-8, checked Oct 2026
- Council document 6358/25 on the EU position for listing medium-chain chlorinated paraffinsCouncil of the European Union, checked Oct 2026
- POPs Review Committee, twenty-first meeting: overview and documentsSecretariat of the Stockholm Convention, checked Oct 2026
- Press release on CPW capacity expansion (18 June 2025)Lords Chloro Alkali Ltd, filed with the National Stock Exchange of India, 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.