What is a linear alkyl benzene project report?
A linear alkyl benzene project report is a detailed project report (DPR) for a plant that turns normal paraffin into olefins and reacts them with benzene to make LAB, the raw material for detergent-grade LABSA. It covers the process route, feedstock, machinery, approvals, project cost, finance, five-year projections, DSCR and break-even.
Chemical companies, detergent makers planning backward integration and investors use it to test feasibility, and banks and financial institutions use it to appraise the loan.
Also known as: LAB project report, linear alkylbenzene plant DPR, LAB manufacturing business plan, feasibility report for linear alkyl benzene.
Linear alkyl benzene manufacturing plant cost in India
Our sample report models a compact unit of 14 metric tonnes per day that buys normal paraffin and benzene. It runs 330 days a year, starts at 60% capacity and reaches 80% in Year 5, selling LAB at ₹1,16,000 per MT before GST.
| Land and site development | 71.92 |
|---|---|
| Building and civil works | 275.18 |
| Plant and machinery | 574.01 |
| Other fixed assets | 60.44 |
| Contingencies | 42.46 |
| Preliminary and pre-operative | 25.60 |
| Working capital margin | 127.55 |
| Total | 1,177.16 |
| Promoter's contribution (25%) | 294.29 |
|---|---|
| Term loan from bank (75%) | 882.87 |
| Cash credit limit (separate) | 382.66 |
| Total project cost | 1,177.16 |
Scale changes everything for LAB: refinery-linked plants in India run at more than 1,00,000 tonnes a year. One Chennai plant received environmental clearance in November 2022 to expand from 1,20,000 to 1,45,000 tonnes a year at a cost of ₹240 crore for the expansion alone. A plant of that size needs a licensed process and its own feasibility study.
Term loan at 10.5% with a 6-month moratorium and 54 monthly instalments. All sample figures are illustrative.
Linear alkyl benzene manufacturing process
Most LAB is made by first turning straight-chain paraffin into olefins, then attaching those olefins to benzene. Conversion per pass is low, so large recycle streams of paraffin and benzene run through the plant.
- Feed preparation
Normal paraffin of 10 to 13 carbon atoms is checked for sulphur and aromatics, because both poison the dehydrogenation catalyst, then mixed with recycled paraffin.
- Dehydrogenation
The paraffin is heated with hydrogen in a fired heater and passed over a platinum catalyst, which converts only a small share to linear mono-olefins in each pass.
- Selective hydrogenation
Diolefins formed as side products are hydrogenated back to mono-olefins, which raises LAB yield and cuts heavy alkylate.
- Alkylation
The olefin and paraffin stream reacts with a large excess of benzene over an acid catalyst to form linear alkyl benzene.
- Benzene and paraffin recovery
Distillation columns strip off unreacted benzene and paraffin and send them back to the alkylation and dehydrogenation sections.
- LAB fractionation
A final vacuum column separates detergent-grade LAB from heavy alkylate, which is sold separately as a lower-value by-product.
- Testing and dispatch
Each lot is tested for bromine index, colour and average molecular weight, then stored and sent to buyers by road tanker.
Which process route suits a new LAB plant?
The choice of alkylation catalyst sets the safety systems, waste streams and product quality of the plant. It also decides which licensor you deal with.
| Solid acid alkylation | Fixed beds of a non-corrosive solid catalyst replace liquid acid. No acid handling or neutralisation, and the LAB has a higher share of the 2-phenyl isomer, which helps the sulphonate dissolve. Introduced in the mid-1990s and widely chosen for new plants. |
|---|---|
| Hydrofluoric acid alkylation | A mature route still used in many older plants. HF is extremely toxic, so it needs acid regeneration, special metallurgy and strict leak detection and emergency systems. |
| Aluminium chloride route | The older Friedel-Crafts route. It leaves spent aluminium chloride sludge to neutralise and dispose of, and is rarely chosen for new capacity. |
| Buying normal paraffin | The model in our sample. Lower investment and a simpler plant, but you depend on a refinery for paraffin supply and price. |
| Making paraffin from kerosene | Refinery-linked plants hydrotreat kerosene and extract normal paraffin with molecular sieves. This adds large units and suits only very large plants. |
Raw materials for linear alkyl benzene
Feedstock is the largest cost in a LAB plant. In our sample report raw materials are 61.1% of sales, and normal paraffin alone is two thirds of the raw material bill. Benzene is bought from refineries and aromatics plants and stored under nitrogen.
| Raw material | Share of cost | Year 3 (₹ lakh) |
|---|---|---|
| Normal paraffin (C10 to C13) | 66% | 1,513.53 |
| Benzene | 28% | 642.10 |
| Catalysts, hydrogen make-up and chemicals | 6% | 137.59 |
| Total | 100% | 2,293.22 |
Paraffin and benzene prices move with crude oil. A full report tests how a rise in the paraffin price affects profit and DSCR.
Machinery for a linear alkyl benzene plant
The dehydrogenation reactor with its fired heater is the costliest item in the sample, followed by the fractionation columns that recover benzene and paraffin.
| Equipment | What it does | Sample cost (₹ lakh) |
|---|---|---|
| Dehydrogenation reactor with fired heater | Turns paraffin into olefins over a platinum catalyst | 137.77 |
| Selective hydrogenation reactor | Converts diolefins back to mono-olefins | 40.18 |
| Solid acid alkylation reactors | React olefins with benzene to form LAB | 103.32 |
| Fractionation columns | Recover benzene and paraffin, separate LAB and heavy alkylate | 126.28 |
| Heat exchangers, reboilers and condensers | Recover heat and run the columns | 51.66 |
| Hydrogen recycle compressor | Circulates hydrogen through dehydrogenation | 40.18 |
| Storage tanks | Hold benzene, paraffin and finished LAB | 45.92 |
| Control system and instruments | Run the plant from a control room | 28.70 |
| Total plant and machinery | 574.01 | |
Costs are the sample report's estimates for a 14 MT per day plant. Process licence fees and catalyst first fill are extra in a real project.
Utilities and manpower for a LAB plant
A LAB plant runs around the clock, with heat for the reactor and columns as its main energy need.
| Power and fuel | ₹211.28 lakh in Year 3 in our sample, about 5.6% of sales |
|---|---|
| Heat | Fuel for the dehydrogenation heater and steam or hot oil for the column reboilers |
| Cooling water | For column condensers and product coolers; size the cooling tower for summer temperatures |
| Nitrogen | For blanketing benzene storage and purging equipment before maintenance |
| Effluent | The 2022 clearance for a large LAB plant required zero liquid discharge; agree the effluent design with the pollution board early |
| Manpower | 113 people in our sample, including 40 skilled operators, at a Year 1 cost of ₹255.42 lakh |
Licences, BIS certification and approvals for LAB
Checked as of October 2026. LAB plants handle benzene and petroleum fractions, so approvals take longer than for most chemical units.
| BIS certification | The Linear Alkyl Benzene (Quality Control) Order, 2022 requires certification to IS 12795:2020 from 3 April 2023. It is suspended from 1 April 2026 to 31 December 2026 (S.O. 5343(E)) |
|---|---|
| Environmental clearance | Prior clearance under the EIA Notification, 2006. MoEFCC appraised a 2022 LAB expansion under item 5(e), petrochemical based processing |
| Pollution board consent | Consent to establish and operate from the State Pollution Control Board; petrochemical manufacturing is in the Red category |
| PESO licence | Under the Petroleum Rules, 2002 to store benzene and paraffin above the exempt limits (30 litres for Class A, 2,500 litres for Class B) |
| Hazardous chemicals | Benzene is listed in Schedule 1 of the MSIHC Rules, 1989, so safety reports, emergency plans and safety data sheets apply |
| Customs code | HS 3817 00 11, linear alkylbenzenes |
| Registration and factory | Udyam and GST registration, and a factory licence under state rules |
Who buys linear alkyl benzene in India?
LAB has one main outlet: sulphonation into LABSA, the active ingredient in Indian washing powders, detergent bars and liquids. Demand therefore tracks household detergent use, which is steady across seasons and less cyclical than most chemicals.
A few large refinery-linked producers supply most domestic LAB, and imports cover part of demand. The government suspended the LAB quality order through 2026, citing global conditions, so that detergent makers could keep buying.
- LABSA and acid slurry manufacturers
- Detergent powder and cake makers
- Liquid detergent and dishwash producers
- Surfactant and specialty chemical companies
- Chemical traders and distributors
What buyers test: sulphonation units judge LAB on bromine index, colour and molecular weight, because these affect LABSA colour and active content. Consistent lots win repeat tanker orders more than a small price cut.
Mistakes that weaken a linear alkyl benzene project report
- No firm paraffin supply
Normal paraffin comes from a handful of refineries. Without a supply agreement, lenders treat the whole project as unproven.
- Ignoring the LAB to paraffin spread
Profit depends on the gap between LAB and feedstock prices, not on the LAB price alone. Projections should test a narrower spread.
- Leaving out catalyst replacement
The platinum dehydrogenation catalyst and the alkylation catalyst wear out and must be replaced or regenerated. Both are real running costs.
- Counting all feed as LAB
Part of the feed ends up as heavy alkylate and light ends. Saleable LAB output and by-product revenue must be shown separately.
- Underestimating the approval timeline
Environmental clearance, PESO licences and BIS certification take months. A schedule that ignores them delays commissioning and the first loan instalment.
How NPCS helps you plan a linear alkyl benzene plant
- Capacity and feedstock routeSize the plant and compare buying paraffin with making it from kerosene.
- Process and licensor optionsCompare alkylation routes, equipment lists and catalyst costs for your scale.
- Bankable project reportProjections, DSCR, sensitivity to feedstock prices and working capital in your lender's format.
- Approvals roadmapEnvironmental clearance, PESO, BIS and pollution board steps for your state.
NPCS's client list includes 4 assignments for linear alkyl benzene and 269 in specialty chemicals. The NPCS project team, led by founder Ajay Kumar Gupta, has prepared reports for companies, entrepreneurs and lenders since 1994.
What's inside the linear alkyl benzene 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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Linear Alkyl Benzene project report: frequently asked questions
How much does it cost to set up a linear alkyl benzene plant in India?
It depends almost entirely on scale and on whether you buy normal paraffin or make it from kerosene. Our sample report models a compact 14 MT per day unit at ₹1,177 lakh. Refinery-linked LAB plants run at more than 1,00,000 tonnes a year and cost many times more, so a large project needs its own feasibility study and a licensed process.
What raw materials are used to make linear alkyl benzene?
Normal paraffin in the C10 to C13 range and benzene are the two feedstocks, with a platinum dehydrogenation catalyst, an alkylation catalyst and hydrogen as process inputs. In our sample report normal paraffin is 66% of raw material cost and benzene 28%, so the paraffin supply contract decides most of the plant economics.
What is the difference between LAB and LABSA?
LAB is the hydrocarbon made by joining a straight paraffin chain to a benzene ring. LABSA, linear alkyl benzene sulphonic acid, is made by sulphonating LAB with sulphur trioxide or oleum. LABSA is the active ingredient detergent makers neutralise for powders, bars and liquids, so LAB plants sell mainly to sulphonation units.
Is BIS certification mandatory for linear alkyl benzene?
The Linear Alkyl Benzene (Quality Control) Order, 2022 requires BIS certification to IS 12795:2020 and has applied since 3 April 2023. The Department of Chemicals and Petrochemicals has suspended it from 1 April 2026 to 31 December 2026. Plan for certification anyway and check the current status with the department before you commission.
Is linear alkyl benzene manufacturing profitable?
In our illustrative sample, the 14 MT per day unit earns a 23% return on investment in Year 3. It breaks even at about 44% of capacity and pays back in about 3.5 years. Real margins depend on the spread between LAB and paraffin prices, catalyst life, yield losses to heavy alkylate and how fully the plant runs.
What is linear alkyl benzene used for?
Almost all LAB is sulphonated into LABSA for household laundry powders, detergent bars, liquid detergents and dishwashing liquids. Smaller quantities go into industrial cleaners and specialty uses such as cable oil and solvents. Its straight carbon chain makes the finished detergent biodegradable, which is why LAB replaced branched alkyl benzene.
Is the sample report 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 do not submit it to a bank or investor. For a loan, NPCS prepares a report for your own capacity, feedstock source and location.
Sources and references
- Petrochemicals Quality Control Orders (Linear Alkyl Benzene, IS 12795:2020)Department of Chemicals and Petrochemicals, Government of India, checked Oct 2026
- Gazette notification S.O. 5343(E): temporary suspension of the Linear Alkyl Benzene QCODepartment of Chemicals and Petrochemicals, Government of India, checked Oct 2026
- Summary of IS 12795:2020 Linear Alkyl BenzeneBureau of Indian Standards, checked Oct 2026
- Environmental clearance for LAB capacity expansion, Manali (EC22A020TN136867)Ministry of Environment, Forest and Climate Change, checked Oct 2026
- Revised FAQs on the Petroleum Rules, 2002Petroleum and Explosives Safety Organisation, checked Oct 2026
- Manufacture, Storage and Import of Hazardous Chemical Rules, 1989Punjab Pollution Control Board, 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.