What is a poly aluminium chloride project report?
A poly aluminium chloride project report is a detailed project report (DPR) for a plant that reacts aluminium hydroxide with hydrochloric acid to make PAC, a coagulant for water treatment. It sets out the process, basicity grades, machinery, raw materials, project cost, five-year projections, DSCR and break-even that a lender or investor checks.
Chemical entrepreneurs and water treatment suppliers use it to size the plant and raise a term loan; banks use it to judge whether the plant can repay.
Also known as: PAC project report, polyaluminium chloride plant project report, poly aluminium chloride business plan, DPR for poly aluminium chloride plant.
Poly aluminium chloride manufacturing plant cost in India
Our sample report models a powder PAC plant of 11 MT per day, or 3,630 MT per year, running 330 days a year. It starts at 60% of capacity, reaches 80% in Year 5 and sells at ₹47,200 per MT ex-factory.
Plant and machinery is just over half the project cost, and the spray dryer alone is about a third of the machinery. A plant that sells only liquid PAC skips that dryer, which is why liquid-only units cost far less to set up.
| Land and site development | 67.88 |
|---|---|
| Building and civil works | 173.30 |
| Plant and machinery | 398.57 |
| Other fixed assets | 48.55 |
| Contingencies | 28.59 |
| Preliminary and pre-operative | 17.92 |
| Working capital margin | 38.80 |
| Total | 773.61 |
| Promoter's contribution (25%) | 193.40 |
|---|---|
| Term loan from bank (75%) | 580.21 |
| Cash credit limit (separate) | 116.38 |
| Total project cost | 773.61 |
Term loan at 10.5% with a 6-month moratorium and 54 monthly instalments. DSCR (debt service coverage ratio, cash available to repay divided by instalments due) is lowest at 1.73 in Year 2. All figures are illustrative.
Poly aluminium chloride manufacturing process
PAC is made in batches. Aluminium hydroxide is dissolved in hydrochloric acid, the solution is partly neutralised to build the polymer, and the clear liquid is either sold as it is or dried to powder.
- Acid charging
Hydrochloric acid of 30–33% strength is pumped from storage tanks into a rubber-lined reactor and diluted with water to the set strength.
- Digestion
Aluminium hydroxide is fed in under agitation and steam heats the slurry to about 100–110°C until it dissolves into aluminium chloride solution.
- Basification
Calcium aluminate is dosed slowly to raise basicity to the medium or high grade the buyer has specified; adding it too fast gives gel and rejects.
- Ageing and filtration
The liquor rests in ageing tanks so the polymer forms fully, then passes through a polypropylene filter press that removes insoluble matter.
- Spray drying
Filtered liquid is atomised into hot air in the spray dryer and comes out as a free-flowing yellow powder of about 30% alumina.
- Testing and packing
Each batch is tested for alumina, basicity and heavy metals, then packed in lined 25 kg bags or loaded as liquid into acid-proof tankers.
HCl vapour from the reactors and tanks is drawn through a fume scrubber, and the filter cake is handled as solid waste under your pollution consent.
Which PAC process route and product form should you choose?
The route decides your raw material cost, the purity you can promise and the buyers you can reach. Low basicity PAC comes straight from aluminium hydroxide and acid; higher basicity needs a base or aluminium metal in an extra step.
| Aluminium hydroxide and HCl (sample route) | Clean, consistent feed that suits drinking water grades under IS 15573. Aluminium hydroxide is the biggest raw material cost. |
|---|---|
| Basifying with calcium aluminate | Used in the sample to reach medium or high basicity. Caustic soda or aluminium metal are other ways to raise basicity, each with its own cost and by-products. |
| Aluminium dross or scrap with HCl | Cheaper aluminium, but iron and heavy metals must be removed. Product often fits effluent treatment better than drinking water tenders. |
| Liquid only | No spray dryer, so lower capital and fuel cost. Sales are limited to buyers within tanker range. |
| Liquid and spray-dried powder | Higher capital, about ₹127.54 lakh for the dryer in the sample, but powder stores longer, travels further and suits exports. |
| Aluminium chlorohydrate | An ultra-high basicity grade made by further reaction with aluminium metal, used in deodorants and some specialty treatment. A separate product decision. |
Raw materials for poly aluminium chloride
Aluminium hydroxide is bought in bags or bulk from alumina refineries and traders. Hydrochloric acid usually comes by tanker from caustic soda plants that make it as a co-product. Being close to an acid source cuts freight on a heavy, corrosive input.
| Raw material | Share of cost | Year 3 (₹ lakh) |
|---|---|---|
| Aluminium hydroxide (alumina hydrate) | 52% | 281.40 |
| Hydrochloric acid, 30–33% | 30% | 162.35 |
| Calcium aluminate powder | 15% | 81.17 |
| Filter aid and process additives | 3% | 16.23 |
| Total | 100% | 541.15 |
Raw materials are 45.1% of sales in the sample. Packing, power and fuel are costed separately.
Machinery for a PAC plant
Everything that touches the acid or the liquor must resist hydrochloric acid, so vessels are rubber-lined and tanks, pipes and pumps are in FRP, HDPE or polypropylene.
| Machine | What it does | Sample cost (₹ lakh) |
|---|---|---|
| Rubber-lined reaction vessels with agitators | Dissolve aluminium hydroxide and build basicity | 71.74 |
| Acid storage tanks and transfer pumps | Hold and move HCl safely | 39.86 |
| Settling and ageing tanks | Let the polymer form before filtering | 27.90 |
| Polypropylene filter press | Removes insoluble matter | 31.89 |
| Spray dryer with hot air generator | Turns liquid PAC into powder | 127.54 |
| Fume scrubber for HCl vapour | Captures acid fumes | 27.90 |
| Steam boiler | Heats the reactors | 31.88 |
| Powder bagging machine | Fills and seals 25 kg bags | 19.93 |
| Quality control laboratory | Batch tests for alumina, basicity and metals | 19.93 |
| Total plant and machinery | 398.57 | |
Costs are the sample report's estimates for an 11 MT per day plant. Get current quotations before you finalise.
Utilities and manpower for a PAC plant
Fuel is the running cost that separates a powder plant from a liquid one: the spray dryer and boiler use most of it.
| Power and fuel | ₹88.54 lakh in Year 3 in the sample, about 7.4% of sales |
|---|---|
| Steam | From the plant boiler, for heating reactors during digestion |
| Water | For diluting acid and making up the liquor; liquid PAC is mostly water, so supply must be steady and low in iron |
| Manpower | 24 people in the sample, with wages of ₹54.72 lakh in Year 1 |
Licences and the IS 15573 standard for PAC
Water boards buy PAC against IS 15573:2018, the Indian Standard for polyaluminium chloride in liquid and powder form. BIS's testing scheme treats each reactor batch as one control unit, so every batch needs its own test record.
| Product standard | IS 15573:2018. BIS tests include alumina, relative basicity, chloride, sulphate, specific gravity, pH of a 5% solution, insolubles and toxic metals such as arsenic, lead, cadmium and mercury |
|---|---|
| BIS certification | BIS licence with the Standard Mark for tender supply; confirm with BIS whether certification is compulsory for your grade at the time you apply |
| Pollution board consent | Consent to establish and operate from the State Pollution Control Board; Maharashtra's Red list covers acid-making chemical units and chlorine compounds, so confirm the category with your board |
| Hazardous chemicals | Hydrochloric acid storage follows the Manufacture, Storage and Import of Hazardous Chemical Rules where quantities apply |
| Boiler and factory | Boiler registration with the state boiler inspectorate and a factory licence, as the law applies to your plant |
| Business registration | Udyam (MSME) registration and GST registration |
Who buys poly aluminium chloride in India?
Drinking water plants run by municipal bodies and state water boards are the largest steady buyers. They use PAC as a coagulant that settles silt and colour out of river and reservoir water, and demand peaks in the monsoon when raw water turbidity rises.
Effluent treatment is the second market. Textile dye houses, paper mills, tanneries and chemical units use PAC for colour removal and sludge settling, often buying through water treatment contractors.
- Municipal corporations and state water supply boards
- Common and in-house effluent treatment plants
- Paper and board mills
- Textile processing and dyeing units
- Water treatment contractors and chemical traders
What a tender looks like: in May 2025 the Brihanmumbai Municipal Corporation invited bids for 24,520 MT of liquid, medium basicity PAC to IS 15573:2018 for one year. Supply was to come in acid-proof tankers with test certificates for every batch.
Mistakes that weaken a poly aluminium chloride project report
- Pricing all output as powder
Many water boards buy liquid by the tanker at a much lower price per tonne. The sales mix must match the buyers you can actually reach.
- Giving away alumina
Product made well above the specified alumina content is sold at the same price. Reports should cost the grade sold, not the richest grade possible.
- Using dross for drinking water grades
Cheap aluminium sources carry iron and heavy metals that can fail the IS 15573 toxic metal limits and cost you the tender.
- No budget for acid corrosion
Rubber linings, FRP tanks, pump seals and filter cloths wear out in HCl service. Repairs must be costed every year, not only at start-up.
- Short debtor days for municipal sales
Trade receivables are the largest current asset in the sample at 45 days of credit. Public buyers can pay slower, so test a longer cycle before fixing the cash credit limit.
How NPCS helps you set up a poly aluminium chloride plant
- Grade and product mixChoose liquid, powder or both, and the basicity grades your target buyers specify.
- Route and equipmentCompare raw material routes and acid-resistant equipment, and size the spray dryer.
- Bank-ready project reportProjections, DSCR and working capital built for municipal credit cycles and your lender's format.
- Approvals and layoutPlant layout for acid storage and scrubbing, and the consent and BIS checklist for your state.
NPCS's client list includes 2 assignments for poly aluminium chloride and 269 in specialty chemicals, prepared by the NPCS project team led by founder Ajay Kumar Gupta.
What's inside the poly aluminium chloride 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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Poly Aluminium Chloride project report: frequently asked questions
What is the cost of a poly aluminium chloride manufacturing plant in India?
A liquid-only PAC unit without a spray dryer needs roughly ₹2–4 crore, and a powder plant of 10–20 MT per day about ₹6–12 crore, including land, building and working capital margin. Our sample report models an 11 MT per day powder plant at ₹773.61 lakh. These are indicative figures; a project report works out the cost for your capacity, grade and site.
What raw materials are used to make poly aluminium chloride?
The main inputs are aluminium hydroxide (alumina hydrate) and hydrochloric acid of 30–33% strength. A basifying agent such as calcium aluminate raises basicity to the grade buyers want. In our sample report aluminium hydroxide is 52% of raw material cost, hydrochloric acid 30% and calcium aluminate 15%, with filter aid and additives making up the rest.
What is basicity in PAC and why does it matter?
Basicity is the ratio of hydroxide to aluminium in the product. It decides how pre-polymerised the PAC is and so how it behaves as a coagulant. Low basicity grades come straight from aluminium hydroxide and acid; medium and high grades need an extra basifying step. Water boards specify the grade in their tenders, so the plant must hit it batch after batch.
What is the difference between liquid and powder PAC?
Liquid PAC is the reaction product after filtration, sold by tanker to nearby water and effluent plants. Powder PAC is the same liquid spray dried into a free-flowing yellow powder, packed in lined bags. Powder costs more to make because of the spray dryer and its fuel, but it stores longer, travels further and suits export orders.
Is a poly aluminium chloride plant profitable?
In our illustrative sample, an 11 MT per day plant earns a 24.9% return on investment in Year 3. It breaks even at 32.5% of capacity and pays back in about 3.3 years. Real results depend on aluminium hydroxide and acid prices, fuel cost for spray drying, the liquid and powder mix, and how quickly municipal buyers pay.
Is the poly aluminium chloride project report PDF free, and can I use it for a loan?
The sample PDF is free to view and download. It shows the format and depth of an NPCS report, but its figures are representative and not taken from a real project. So it should not be submitted to a bank. For a loan, NPCS prepares a report for your own capacity, grade, location and lender.
How do I start a poly aluminium chloride business?
Start by choosing the grade and form you will sell, liquid for local water boards or powder for wider markets. Then fix capacity, secure aluminium hydroxide and acid supply, pick a site that allows a chemical unit, and get pollution consent. A project report on poly aluminium chloride with costs and projections is what your lender will ask for first.
Sources and references
- IS 15573: Polyaluminium chloride (standard preview)Bureau of Indian Standards, checked Oct 2026
- Draft scheme of inspection and testing for polyaluminium chloride as per IS 15573:2018Bureau of Indian Standards, checked Oct 2026
- Supply of Poly Aluminium Chloride (PAC) as per IS 15573:2018, tender documentBrihanmumbai Municipal Corporation, Hydraulic Engineer Department, checked Oct 2026
- Polyaluminum Chloride Supply Chain ProfileUnited States Environmental Protection Agency, checked Oct 2026
- List of industries under Red, Orange, Green and White categoriesMaharashtra Pollution Control Board (as published by MSEDCL), 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.