What is a dicyandiamide (dcda) project report?
A dicyandiamide (DCDA) project report is a detailed project report for a plant that turns calcium carbide into calcium cyanamide and then into white DCDA crystals. It sets out the process route, machinery, raw materials, approvals, project cost, means of finance, five-year projections, DSCR and break-even that a bank or investor checks before funding the plant.
Chemical entrepreneurs and pharma or resin makers use it to size the plant and raise a term loan; lenders use it to test whether the unit can repay.
Also known as: DCDA project report, cyanoguanidine plant project report, dicyandiamide business plan, 2-cyanoguanidine manufacturing DPR.
Dicyandiamide manufacturing plant cost in India
Our sample report models a 7.5 MT per day DCDA plant working 330 days a year, or 2,475 MT per year at full output. It starts at 60% of capacity and reaches 80% in Year 5, selling technical grade DCDA at ₹1,41,000 per MT before GST.
| Land and site development | 137.59 |
|---|---|
| Building and civil works | 242.45 |
| Plant and machinery | 608.26 |
| Other fixed assets | 65.39 |
| Contingencies | 42.54 |
| Preliminary and pre-operative | 27.41 |
| Margin money for working capital | 80.33 |
| Total | 1,203.97 |
| Promoter's contribution (25%) | 300.99 |
|---|---|
| Term loan from bank (75%) | 902.98 |
| Cash credit limit (separate) | 241.00 |
| Total project cost | 1,203.97 |
Term loan at 10.5% with a 6-month moratorium and 54 monthly instalments; the lowest yearly DSCR in the sample is 1.62. All figures are illustrative.
Dicyandiamide manufacturing process, step by step
DCDA is made in two halves. A hot, dry section fixes nitrogen into calcium carbide, and a wet section frees cyanamide, pairs two cyanamide molecules into dicyandiamide and crystallises the product.
- Carbide milling
Calcium carbide lumps are crushed and ball-milled to a fine powder in a closed, dry circuit, because any moisture releases acetylene gas.
- Nitrogenation
The powder, with a little calcium fluoride to speed the reaction, is heated in nitrogen at about 1,000 °C to form calcium cyanamide, also called lime nitrogen.
- Hydrolysis
Cooled and ground lime nitrogen is stirred into water, so cyanamide dissolves and calcium stays behind as a hydroxide slurry.
- Decalcification
Carbon dioxide is bubbled through the slurry to drop the remaining calcium out as calcium carbonate, which a filter press removes.
- Dimerisation
The clear cyanamide solution is held at pH 8–9 and about 80 °C for roughly two hours, which converts it almost fully to dicyandiamide.
- Crystallisation
The hot liquor is polished through carbon and filters, then cooled under vacuum so DCDA crystallises out.
- Centrifuging and drying
Centrifuges separate the crystals from the mother liquor, which goes back to the process, and a rotary dryer brings moisture down.
- Sifting and packing
Dry DCDA is sifted, tested for purity and melamine content, and packed in lined bags or jumbo bags.
Which DCDA process route should you choose?
The real choice is where you enter the cyanamide chain. Entering later cuts capital cost but ties your margin to an imported intermediate.
| Integrated carbide route | Buys calcium carbide and makes lime nitrogen on site in furnaces. Highest capital cost and power load, but the most control over cost and supply. |
|---|---|
| Bought-in calcium cyanamide | Starts at hydrolysis with purchased lime nitrogen. No furnaces or nitrogen plant, so less capital, but the main input is usually imported and its price sets your margin. |
| Bought-in cyanamide solution | Starts at dimerisation. The smallest plant, suited to a resin or pharma maker making DCDA for its own use rather than for sale. |
| Route in our sample report | The integrated carbide route, which is why nitrogenation furnaces are the largest machinery item. |
Raw materials for DCDA and how much carbide it takes
Chemistry alone needs about 1.5 tonnes of pure calcium carbide for each tonne of DCDA, since two carbide molecules end up in one DCDA molecule. Commercial carbide is not pure and every stage loses some yield, so plan for more than that.
| Raw material | Share of cost | Year 3 (₹ lakh) |
|---|---|---|
| Calcium carbide | 83% | 1,014.74 |
| Liquid carbon dioxide | 10% | 122.26 |
| Activated carbon and filter aids | 4% | 48.90 |
| Calcium fluoride additive | 3% | 36.68 |
| Total | 100% | 1,222.58 |
Carbide price is the swing factor: raw materials are 50% of sales in our sample, and carbide is 83% of that. A 10% rise in carbide price adds about 4% of sales to cost.
Machinery for a dicyandiamide plant
| Machine | What it does | Sample cost (₹ lakh) |
|---|---|---|
| Nitrogenation furnaces | Convert carbide to lime nitrogen | 145.98 |
| Dimerisation reactors and vacuum crystalliser | Form DCDA and crystallise it | 97.32 |
| Hydrolysis and carbonation reactors | Release cyanamide and remove calcium | 85.16 |
| Centrifuges and rotary dryer | Separate and dry the crystals | 72.99 |
| PSA nitrogen generator | Makes nitrogen from air for the furnaces | 60.83 |
| Carbide crusher and ball mill | Grinds carbide in a dry, closed circuit | 48.66 |
| Filter presses | Remove calcium carbonate cake | 48.66 |
| Scrubber and effluent treatment plant | Treat vent gases and process water | 30.41 |
| Sifter and bag filling machine | Grade and pack the product | 18.25 |
| Total plant and machinery | 608.26 | |
Costs are the sample report's estimates for a 7.5 MT per day plant. Get current quotations, and furnace references from running plants, before you finalise.
Manpower for a 7.5 MT per day DCDA plant
Furnaces, reactors and crystallisers run round the clock, so the plant works three shifts. Each shift needs trained operators and a chemist who checks pH, temperature and product purity.
| Category | Number | Year 1 cost (₹ lakh) |
|---|---|---|
| Management, supervision and administration | 11 | 42.90 |
| Skilled workers and operators | 26 | 63.96 |
| Semi-skilled and unskilled workers | 36 | 58.32 |
| Total | 73 | 165.18 |
Licences and approvals for a DCDA plant
A DCDA plant stores a reactive raw material and makes an organic chemical, so it needs more approvals than a typical factory. These are the main ones, as checked in October 2026.
| Environmental clearance | Synthetic organic chemicals are item 5(f) of the EIA Notification 2006: Category B in a notified industrial area, Category A outside one |
|---|---|
| Pollution board consent | Organic chemicals manufacturing is a red category industry; consent to establish and to operate from the State Pollution Control Board |
| Calcium carbide storage | Licence under the Calcium Carbide Rules, 1987; storing more than 500 kg at a time needs a Form III licence from the District Authority |
| Factory licence | Under the Factories Act and state rules, with safety measures for a hazardous process |
| Business registration | Udyam (MSME) registration and GST registration |
Rules change and states add their own conditions. Confirm each approval with the state authority before you apply.
Who buys dicyandiamide in India?
DCDA sells to a handful of industries that each buy in bulk and on specification. A new plant competes with imported material on landed price, steady quality and shorter delivery, rather than on price alone.
- Metformin and other pharmaceutical intermediate makers
- Epoxy resin, circuit board laminate and powder coating producers
- Fertiliser makers adding a nitrification inhibitor to urea
- Textile auxiliary makers producing dye-fixing agents
- Water treatment chemical producers making flocculant resins
- Chemical traders and distributors
Grade decides the buyer: pharma customers want higher purity and low melamine, and they approve a supplier only after testing samples. Approval takes months, but an approved supplier tends to keep the account.
Mistakes that weaken a dicyandiamide (DCDA) project report
- Using small-pack prices for sales
Laboratory DCDA in 1 kg packs sells at many times the bulk ex-factory rate. Projections built on online pack prices overstate revenue and DSCR.
- Taking carbide consumption at the theoretical figure
Carbide purity and losses at each stage push real use well above 1.5 tonnes per tonne of DCDA, and carbide is most of the cost.
- No plan for calcium carbonate cake
Each tonne of DCDA leaves more than two tonnes of carbonate on a dry basis. The report needs a sale route or disposal cost for it.
- Leaving out environmental clearance time
A site outside a notified industrial area falls in Category A, which adds months before construction can start and interest during construction.
- Ignoring import price swings
Buyers can always import DCDA instead. A report should test what happens to profit and DSCR if the landed import price falls by 10–15%.
How NPCS helps you plan a DCDA plant
- Route and capacityCompare the integrated carbide route with bought-in lime nitrogen for your budget and buyers.
- Material balanceCarbide, carbon dioxide and power use per tonne, with yields at each stage.
- Bank-ready project reportProjections, DSCR, sensitivity to carbide and import prices, and working capital in your lender's format.
- Approvals and layoutEnvironmental clearance category, carbide storage licence and a plant layout that keeps carbide dry.
NPCS's client list records 269 assignments in specialty chemicals, prepared by the NPCS project team led by founder Ajay Kumar Gupta.
What's inside the dicyandiamide (dcda) 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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Dicyandiamide (DCDA) project report: frequently asked questions
How much does it cost to set up a dicyandiamide plant in India?
Our sample report models a 7.5 MT per day DCDA plant at ₹1,204 lakh, including land, building, machinery and working capital margin. As an indicative range, an integrated 5–10 MT per day plant needs about ₹9–18 crore. A unit that buys calcium cyanamide instead of making it costs less, because it skips the nitrogenation furnaces. Your report prices your own capacity and site.
What is the raw material for dicyandiamide?
Calcium carbide is the main raw material. It is reacted with nitrogen to make calcium cyanamide, which is then converted to DCDA. In our sample report carbide is 83% of raw material cost, followed by liquid carbon dioxide at 10%. Nitrogen is made on site in a PSA generator, so it shows up as power cost rather than a purchase.
Is dicyandiamide manufacturing profitable?
In our illustrative sample, a 7.5 MT per day plant earns a 23% return on investment in Year 3 and breaks even at 39% of capacity. It pays back in about 3.5 years, with an average DSCR of 1.85. Real profit depends mostly on the calcium carbide price, the landed price of imported DCDA and how quickly pharma buyers approve your grade.
What is DCDA used for?
DCDA is a starting material for metformin, the diabetes drug, and a hardener for epoxy resins used in circuit board laminates and powder coatings. It is also added to urea as a nitrification inhibitor and made into dicyandiamide formaldehyde resins for dye fixing and water treatment. Smaller amounts go into flame retardant finishes for paper and textiles.
Is DCDA the same as DCD and cyanoguanidine?
Yes. Dicyandiamide, DCDA, DCD, cyanoguanidine and 2-cyanoguanidine are names for the same compound, a dimer of cyanamide with the formula C2H4N4. The fertiliser trade tends to say DCD, while pharma and resin buyers more often write DCDA. Grades differ in purity and impurity limits, not in the chemical itself.
Does a DCDA plant need environmental clearance?
Usually yes. Synthetic organic chemicals fall under item 5(f) of the EIA Notification 2006: Category B inside a notified industrial area and Category A outside it. Organic chemicals manufacturing is also in the red category for pollution board consent. Confirm the current position with your state authority, because the schedule has been amended since 2006.
Is the DCDA sample project report PDF 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, process route and location.
Sources and references
- Guidelines for issuing licences under the Calcium Carbide Rules, 1987Petroleum and Explosives Safety Organisation (PESO), checked Oct 2026
- Environment Impact Assessment Notification, 2006 (S.O. 1533)Ministry of Environment and Forests, Government of India (copy hosted by the Government of Puducherry), checked Oct 2026
- List of red category industriesState Pollution Control Board, Odisha, 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.