What is a coumarin project report?
A coumarin project report is a detailed project report (DPR) for a plant that makes coumarin, the sweet, hay-scented aroma chemical, usually by condensing salicylaldehyde with acetic anhydride. It sets out the process, reactors and distillation train, raw materials, market, project cost, means of finance, five-year projections, DSCR and break-even that a lender or investor needs.
Chemical entrepreneurs and aroma chemical makers use it to size the plant and raise a term loan, and banks use it to test whether the unit can repay.
Also known as: project report on coumarin, coumarin business plan, coumarin plant DPR, coumarin feasibility study.
Coumarin manufacturing plant cost in India
Our sample report models a plant making 1,300 kg of coumarin a day, running 330 days a year at 60% of capacity in Year 1 and 80% by Year 5. Coumarin is priced at ₹815 per kg ex-factory, and the full project costs ₹1,216.06 lakh.
| Land and site development | 81.58 |
|---|---|
| Building and civil works | 284.62 |
| Plant and machinery | 610.63 |
| Other fixed assets | 85.06 |
| Contingencies | 44.76 |
| Preliminary and pre-operative | 27.67 |
| Working capital margin | 81.74 |
| Total | 1,216.06 |
| Promoter's contribution (25%) | 304.02 |
|---|---|
| Term loan from bank (75%) | 912.04 |
| Cash credit limit (separate) | 245.21 |
| Total project cost | 1,216.06 |
Machinery is half the bill. Plant and machinery at ₹610.63 lakh is just over half the project cost. The plant needs glass-lined reactors, a vacuum distillation train and solvent recovery before the first kilogram is sold.
Term loan at 10.5% with a 6-month moratorium and 54 monthly instalments. Lowest DSCR is 1.38 in Year 2. All figures are illustrative.
Coumarin manufacturing process (Perkin route)
Synthetic coumarin is made industrially by a modified Perkin reaction. Salicylaldehyde condenses with acetic anhydride in the presence of sodium acetate, the ring closes, and coumarin forms along with acetic acid.
- Charging
Salicylaldehyde, excess acetic anhydride and anhydrous sodium acetate go into a glass-lined reactor kept dry, since water destroys the anhydride.
- Condensation
The batch is heated in stages from about 150°C to 180–210°C over several hours on thermic fluid.
- Acetic acid take-off
Acetic acid formed in the reaction is distilled off as the batch runs and collected for reuse or sale.
- Hot water wash
The cooled mass is washed with hot water to dissolve sodium acetate, and the crude organic layer is separated.
- Vacuum distillation
Crude coumarin is distilled under high vacuum, leaving tarry residues behind and recovering unreacted salicylaldehyde.
- Crystallisation and drying
The distillate is recrystallised, centrifuged and dried at low temperature, because coumarin melts at about 70°C.
- Testing and packing
Each batch is checked for assay by gas chromatography, melting point and odour, then packed in lined fibre drums.
Which process route suits a new coumarin plant?
Several routes to coumarin are described in the patent literature. For a new unit the choice usually comes down to buying salicylaldehyde for the Perkin route, which is the route our sample report uses.
| Perkin condensation | The established industrial route. Reported yields rise from about 65% to 80% with more sodium acetate and an end temperature near 210°C. Equipment is simple batch plant, but salicylaldehyde is expensive. |
|---|---|
| Dihydrocoumarin dehydrogenation | A catalytic route. Patents report conversion capped near 70% and fast catalyst deactivation, so it suits integrated producers more than a first plant. |
| Phenol and acrylic derivatives | Vinylation of phenols with acrylic compounds. Reported coumarin yields are about 51%, with several by-products to separate. |
| o-Hydroxycinnamic acid cyclisation | Uses costly reagents and harsh conditions over a metal catalyst. Rarely the choice for a new plant. |
| Making salicylaldehyde in-house | Cuts the biggest raw material cost but adds a second process, more effluent and a larger loan. Worth a separate study once the coumarin line is running. |
Raw materials for coumarin and their cost share
Salicylaldehyde drives the cost: 68% of raw material spend in our sample, against 21% for acetic anhydride. At an 80% yield, each kg of coumarin needs a little over 1 kg of salicylaldehyde, against 0.84 kg in theory.
| Raw material | Share of cost | Year 3 (₹ lakh) |
|---|---|---|
| Salicylaldehyde | 68% | 919.17 |
| Acetic anhydride | 21% | 283.86 |
| Sodium acetate (anhydrous) | 4% | 54.07 |
| Crystallisation solvent and activated carbon | 7% | 94.62 |
| Total | 100% | 1,351.72 |
Raw materials are 55.2% of sales in Year 3 of the sample. Acetic anhydride can only be bought with a Narcotics Control Bureau registration number.
Machinery for a coumarin plant
The condensation reactors are the largest item, followed by the high-vacuum distillation unit that separates saleable coumarin from residues.
| Machine | What it does | Sample cost (₹ lakh) |
|---|---|---|
| Glass-lined reactors with thermic fluid jacket | Run the Perkin condensation | 146.55 |
| Acetic acid recovery column | Takes off and purifies acetic acid | 85.49 |
| High-vacuum distillation unit | Separates crude coumarin from residues | 109.91 |
| Crystalliser with chilling system | Recrystallises coumarin to final purity | 61.06 |
| Centrifuge and vacuum tray dryer | Separates and dries crystals | 54.96 |
| Thermic fluid heater and cooling tower | Supplies process heat and cooling | 48.85 |
| Solvent recovery, scrubber and ETP | Recovers solvent, treats vents and effluent | 67.17 |
| QC laboratory with gas chromatograph | Tests assay, melting point and odour | 36.64 |
| Total plant and machinery | 610.63 | |
Costs are the sample report's estimates for a 1,300 kg per day plant. Get current quotations before you finalise.
Manpower, power and utilities
The sample plant employs 68 people. Power and fuel cost ₹148.93 lakh in Year 3, about 6.1% of sales, mostly for the thermic fluid heater, vacuum pumps and chilling.
| Category | Number | Annual cost (₹ lakh) |
|---|---|---|
| Management, supervision and administration | 10 | 39.00 |
| Skilled workers and operators | 24 | 59.04 |
| Semi-skilled and unskilled workers | 34 | 55.08 |
| Total (Year 1) | 68 | 153.12 |
A chemist who can run gas chromatography and judge odour against a reference sample is the one hire the plant cannot do without.
Licences and approvals for a coumarin plant
Two approvals set coumarin apart from most aroma chemicals: the pollution category and the controls on acetic anhydride.
| Pollution board consent | Consent to establish and operate from the State Pollution Control Board. Organic chemicals manufacturing is in the Red category, so expect strict effluent, air and hazardous waste conditions. |
|---|---|
| Acetic anhydride registration | A unique registration number in Form A from the Zonal Director of the Narcotics Control Bureau, under the NDPS (Regulation of Controlled Substances) Order, 2013. Sellers cannot supply you without it. |
| Records and returns | Daily accounts of acetic anhydride, quarterly returns to the Zonal Director, a Form G consignment note with every movement, and records kept for five years. |
| Imported acetic anhydride | A no objection certificate from the Narcotics Commissioner for each import. |
| Factory and fire safety | Factory licence and fire NOC; the plant handles flammable solvents and hot thermic fluid. |
| Business registration | Udyam (MSME) registration and GST registration. |
Who buys coumarin in India?
Coumarin gives the sweet, hay-like note used in fougère perfumes, soaps, talc and incense. Demand follows the soap, detergent, agarbatti and fine fragrance industries, and it is also used in nickel plating baths and as an intermediate for other aroma chemicals.
- Fragrance and flavour compounding houses
- Soap and detergent manufacturers
- Agarbatti perfume compounders
- Cosmetic and personal care makers
- Electroplating chemical suppliers
- Aroma chemical traders and exporters
Odour decides the sale. Two lots with the same assay can smell different if traces of salicylaldehyde or residue remain. Compounders test odour against a reference before they approve a supplier, and an approved supplier tends to keep the business.
Mistakes that weaken a coumarin project report
- Pricing from small-pack listings
Fragrance houses buy in drums at prices close to landed import cost. Small-pack rates inflate revenue and DSCR.
- Assuming the best reported yield
Reported Perkin yields run from about 65% to 80%. Dropping from 80% to 75% raises salicylaldehyde use per kg by about 7%.
- No plan for acetic acid and sodium acetate
Both leave the reactor in volume. Without a recovery or sale route they become a disposal cost.
- Ignoring the NCB registration lead time
The Zonal Director has 30 working days to decide. No supplier can sell you acetic anhydride before that.
- Under-sizing effluent and residue handling
Distillation residues and solvent vents need an approved disposal route in a Red category plant.
How NPCS helps you plan a coumarin plant
- Route and capacityCompare the Perkin route with alternatives and size the plant to your market and budget.
- Material and by-product balanceYield, salicylaldehyde use, acetic acid recovery and residue volumes, worked out batch by batch.
- Bank-ready project reportProjections, DSCR and working capital in the format your lender wants.
- Approvals and layoutPlant layout, NCB registration, pollution consent and the approvals list for your state.
NPCS's client list records 269 assignments in organic and specialty chemicals, and the NPCS project team has prepared chemical plant reports since 1994.
What's inside the coumarin 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 |
What clients say about NPCS
4.7
264 Google reviews, as of 20 Oct 2026
Clients most often mention
- feasibility reports 18
- project report 16
- helpful for startups 15
- detailed reports 8
-
Excellent experience with Niir Project Consultancy Services. Their Techno-Economic Feasibility Reports are incredibly detailed and backed by solid market data.
Piyush Singh, Google review, 2026
-
Niir Project Consultancy Services offers excellent guidance for business setup. Their market survey and feasibility reports saved us a lot of time and helped us make informed decisions. Highly recommended
Saroj Yadav, Google review, 2026 View on Google
-
In an era of information overload, NIIR stands out for its precision. Their technical consultancy and market feasibility studies are world-class.
Shrishti Gautam, Google review, 2026
-
NIIR Project Consultancy Services provides useful books and reports for students, entrepreneurs, and small businesses. Their content is easy to understand and focuses on practical ideas for starting and managing industries. Overall, NIIR is helpful for learning about business and project planning.
Raj Yadav, Google review, 2026
Coumarin project report: frequently asked questions
How much does it cost to set up a coumarin plant in India?
Our sample report models a 1,300 kg per day coumarin plant at ₹1,216 lakh, including land, building, machinery and working capital margin. As an indicative guide, a 400–600 kg per day plant needs roughly ₹5–8 crore and a 3 MT per day plant about ₹18–25 crore. Your project report works out the cost for your capacity, site and process route.
What raw materials are used to make coumarin?
Salicylaldehyde and acetic anhydride, with anhydrous sodium acetate as the catalyst and a solvent and activated carbon for purification. Salicylaldehyde is 68% of raw material cost in our sample report. At an 80% yield, each kg of coumarin needs a little over 1 kg of salicylaldehyde, against 0.84 kg in theory.
How is coumarin manufactured?
Coumarin is made by a modified Perkin reaction. Salicylaldehyde is heated with acetic anhydride and sodium acetate to about 180–210°C, acetic acid is distilled off, and the mass is washed with hot water. Crude coumarin is then distilled under vacuum, recrystallised, dried and tested by gas chromatography before packing in lined drums.
Is coumarin manufacturing profitable?
In our illustrative sample, a 1,300 kg per day plant earns a 17% return on investment in Year 3. It breaks even at about 44% of capacity, pays back in about 4.1 years and has an average DSCR of 1.58. Real profit depends mostly on the salicylaldehyde price, the yield you achieve and how much acetic acid you recover and sell.
Do I need a licence to use acetic anhydride for coumarin?
Yes. Acetic anhydride is a Schedule A controlled substance in India. Before you buy, store or use it, you need a unique registration number in Form A from the Zonal Director of the Narcotics Control Bureau. You must also keep daily records, file quarterly returns and move every consignment with a Form G consignment note.
Can coumarin be used as a food flavouring?
Coumarin is sold mainly for fragrance and technical uses. Food regulators in some markets restrict it: the United States, for example, treats food with added coumarin as adulterated. Before selling any lot for a flavour use, check the food rules of the buyer's market, including FSSAI rules in India, and label technical grades clearly.
Is the coumarin project report PDF sample 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, location, process route and lender.
Sources and references
- Narcotic Drugs and Psychotropic Substances (Regulation of Controlled Substances) Order, 2013Meghalaya Police, Government of Meghalaya, checked Oct 2026
- Controlled substances in India (Schedules A, B and C)Central Bureau of Narcotics, Government of India, checked Oct 2026
- List of Red category industriesState Pollution Control Board, Odisha, checked Oct 2026
- 21 CFR 189.130, CoumarinU.S. Government Publishing Office, checked Oct 2026
- US Patent 5,872,265, Method for preparing coumarin and derivatives thereofUnited States Patent and Trademark Office, 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.