What is a potassium iodide project report?
A potassium iodide project report is a detailed project report (DPR) for a plant that reacts imported iodine with potassium hydroxide and crystallises pure KI. It sets out the process route, iodine consumption, machinery, licences, project cost, means of finance, five-year projections, DSCR and break-even that a lender or investor reviews.
Chemical and pharma entrepreneurs use it to size a plant and raise a term loan; banks use it to judge whether the unit can carry the iodine bill and still repay.
Also known as: project report on potassium iodide, potassium iodide business plan, KI manufacturing plant report, potassium iodide DPR.
Potassium iodide manufacturing plant cost in India
The sample report models a 390 kg per day plant working 330 days a year, which is 1,28,700 kg of potassium iodide at full capacity. It starts at 60% utilisation, reaches 80% in Year 5 and sells at ₹6,170 per kg before GST.
| Land and site development | 77.76 |
|---|---|
| Building and civil works | 328.17 |
| Plant and machinery | 629.15 |
| Other fixed assets | 96.89 |
| Contingencies | 47.87 |
| Preliminary and pre-operative | 29.50 |
| Working capital margin | 189.34 |
| Total | 1,398.68 |
| Promoter's contribution (25%) | 349.67 |
|---|---|
| Term loan from bank (75%) | 1,049.01 |
| Cash credit limit (separate) | 568.03 |
| Total project cost | 1,398.68 |
Look at the cash credit line. At ₹568 lakh it is close to the whole machinery budget. A month of iodine stock and 45 days of buyer credit tie up more money than the machinery: working capital need is ₹757.37 lakh in Year 1.
Term loan at 10.5% with a 6-month moratorium and 54 monthly instalments. All figures are illustrative; the lowest yearly DSCR in the sample is 1.75.
Potassium iodide manufacturing process
Potassium iodide is made in batches. The sample follows the formate reduction route, which avoids the high-temperature fusion step that older plants use.
- Iodination
Iodine is fed slowly into hot potassium hydroxide solution in a glass-lined reactor. For every five molecules of iodide, one molecule of potassium iodate also forms.
- Iodate reduction
Formic acid or potassium formate is dosed and the batch is heated until the iodate is converted to iodide. The batch is tested for leftover iodate before it moves on.
- Purification
Activated carbon removes colour and organics, and pH adjustment drops out iron and heavy metals that would fail a pharmacopoeial test.
- Filtration
A filter press, then cartridge polishing filters, give a water-clear liquor ready for crystallisation.
- Evaporation and crystallisation
Steam concentrates the liquor and controlled cooling grows white cubic crystals of the size buyers specify.
- Centrifuging and drying
A basket centrifuge separates the crystals, the mother liquor returns to the next batch, and a vacuum dryer brings moisture down.
- Sifting and packing
Crystals are sifted, sampled for assay and moisture, and packed in lined HDPE drums that keep out light and air.
Which process route suits a new potassium iodide plant?
All three commercial routes start from iodine. They differ in how they deal with the iodate formed in the reaction, and that choice decides fuel use, equipment and purity.
| KOH and iodine with carbon fusion | The iodide and iodate mass is dried and ignited with charcoal, or fused at about 600 °C, to break down iodate, then redissolved and recrystallised. Simple chemistry, but it needs a furnace and more fuel. |
|---|---|
| KOH and iodine with formate reduction | Iodate is reduced in solution, so there is no fusion step. It suits a batch plant built around glass-lined reactors and is the route modelled in our sample report. |
| Iron iodide route | Iron and iodine form iron iodide, which reacts with potassium carbonate to give potassium iodide and iron oxide. No iodate forms, but the iron oxide sludge must be filtered and disposed of. |
| What to decide first | The grade you will sell. Pharmacopoeial buyers test heavy metals, iodate and assay, which favours a solution route with good filtration. |
Raw materials for potassium iodide
Iodine makes up about 76% of the weight of potassium iodide, so iodine buying decides profit more than any other line. Chile produced about two-thirds of the world's iodine outside the United States in 2025, followed by Japan, according to the U.S. Geological Survey, and Indian plants depend on imports.
| Raw material | Share of cost | Year 3 (₹ lakh) |
|---|---|---|
| Iodine crystals (imported) | 92% | 3,208.44 |
| Potassium hydroxide flakes | 5% | 174.37 |
| Formic acid or potassium formate | 2% | 69.75 |
| Activated carbon and filter aids | 1% | 34.87 |
| Total | 100% | 3,487.43 |
Watch the iodine price: USGS puts the average spot price of iodine crystal at about $73 per kg in the first ten months of 2025, up from $70.24 in 2024. A report should test what a rise of this size does to margin and DSCR.
Machinery for a potassium iodide plant
Iodine vapour and hot alkali attack ordinary steel, so wetted parts are glass-lined or stainless steel. The glass-lined reactor is the largest single item in the sample.
| Machine | What it does | Sample cost (₹ lakh) |
|---|---|---|
| Glass-lined reactor with agitator | Iodination and iodate reduction | 138.41 |
| Steam-heated evaporator and crystalliser | Concentrates liquor and grows crystals | 113.25 |
| Iodine charging and fume scrubber | Feeds iodine and captures vapour | 62.92 |
| Filter press and polishing filters | Clears the liquor before crystallising | 62.92 |
| Basket centrifuge and vacuum tray dryer | Separate and dry the crystals | 125.82 |
| Sifter and mill | Brings crystals to the buyer's size | 31.46 |
| Boiler and cooling tower | Steam for evaporation, cooling for crystallising | 50.33 |
| Quality control laboratory | Assay, iodate, heavy metal and moisture tests | 44.04 |
| Total plant and machinery | 629.15 | |
Centrifuge (₹62.91 lakh) and dryer (₹62.91 lakh) are combined in one row. Costs are the sample's estimates; get current quotations before you finalise.
Licences and approvals for a potassium iodide plant
The licence list depends on the grade you sell. Plan for the pharmacopoeial grade from the start if you want pharma buyers, because the building and staff must meet the drug licence conditions.
| Pollution board consent | Consent to establish and to operate from the State Pollution Control Board. Iodine and its compounds appear in the Red category list (the Odisha board's list, for example), the strictest class, so check siting rules before you buy land. |
|---|---|
| Drug manufacturing licence | Form 25 from the State Licensing Authority, applied for on Form 24, for pharmacopoeial grade. It is issued after an inspection of the premises and the named technical staff. |
| Factory and fire | Factory licence where the worker threshold applies, and a fire NOC for the boiler, solvents and chemical store, as your state requires |
| Business registration | Udyam (MSME) registration and GST registration |
Rules differ by state and change over time. Confirm each approval with the state authority before you apply.
Who buys potassium iodide in India?
Most demand comes from pharmaceutical formulators, who use it in thyroid-blocking tablets, oral solutions and expectorant syrups. Animal feed premix makers buy it as an iodine source, and a USDA review notes that US feed rules permit it as a trace mineral. Laboratory reagent packers and nylon compounders, who use it with copper salts as a heat stabiliser, take smaller lots.
- Pharmaceutical formulation companies
- Animal feed and mineral premix makers
- Laboratory reagent packers and distributors
- Nylon and engineering-plastics compounders
- Chemical traders and exporters
Approval comes before volume: formulators audit a new supplier and test trial lots before they place regular orders. Allow several months for this in the sales build-up.
Mistakes that weaken a potassium iodide project report
- Pricing iodine from an old quote
Iodine is the main cost. A report built on last year's price can turn a thin margin into a loss and overstate DSCR.
- Assuming full iodine yield
Some iodine escapes as vapour or stays in mother liquor and washings. The report should show recovery and recycle, not 100% conversion.
- Under-sizing working capital
A month of imported iodine plus buyer credit needs a large cash credit limit. Leaving it small starves the plant in the first year.
- Pricing all output as pharma grade
Until formulators approve the plant, much of the output sells as technical or feed grade at lower prices.
- Ignoring light and moisture
Potassium iodide yellows as it frees iodine in light and damp air. Packing, storage and shelf life belong in the costing.
How NPCS helps you set up a potassium iodide plant
- Route and gradeChoose the process route and the mix of pharma, feed and technical grade for your buyers.
- Iodine and yield modelIodine consumption, recovery and price sensitivity worked into the projections.
- Bank-ready project reportProjections, DSCR and a working capital limit sized for imported iodine stock.
- Licences and layoutPlant layout and the drug licence and Red category consent steps for your state.
The NPCS client list records 269 assignments in specialty chemicals, including a potassium iodide assignment, for entrepreneurs and companies in India and abroad.
What's inside the potassium iodide 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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Potassium Iodide project report: frequently asked questions
What is the cost of a potassium iodide manufacturing plant in India?
Our sample report models a 390 kg per day plant at a total project cost of ₹1,399 lakh, with ₹629 lakh of plant and machinery. A smaller technical-grade unit of about 100 kg per day may need roughly ₹4–7 crore, which is an indicative range. The final cost depends on grade, automation, land and how much working capital the iodine stock ties up.
What raw materials are used to make potassium iodide?
Iodine and potassium hydroxide are the two main inputs, with formic acid or potassium formate to reduce the iodate formed in the reaction and activated carbon for purification. Iodine is about 76% of the weight of potassium iodide, so it dominates cost. In our sample report it is 92% of the raw material bill.
How is potassium iodide manufactured?
Iodine is added to hot potassium hydroxide solution, which forms potassium iodide and some potassium iodate. The iodate is reduced to iodide with formate or carbon, the liquor is purified and filtered, then evaporated and crystallised. Crystals are centrifuged, dried, sifted and packed in light-resistant drums, and the mother liquor goes back into the next batch.
Is potassium iodide manufacturing profitable?
In our illustrative sample, the plant earns ₹371 lakh net profit on ₹5,559 lakh sales in Year 3, a 26% return on investment, with break-even at about 44% of capacity. Margins are thin per kilogram because iodine is so costly, so profit depends heavily on iodine buying, yield and the share of pharmacopoeial grade sold.
Do I need a drug licence to make potassium iodide?
You need one if you sell pharmacopoeial grade for medicines. A manufacturing licence in Form 25 is granted by the State Licensing Authority after an inspection of the premises and the technical staff named in the application. Technical and feed grades usually do not need it, but buyers will still ask for a certificate of analysis for each batch.
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. It should not be submitted to a bank. For a loan, NPCS prepares a report for your own capacity, grade, location and lender.
Sources and references
- Mineral Commodity Summaries 2026: IodineU.S. Geological Survey, checked Oct 2026
- Potassium iodide technical evaluation report (livestock)Agricultural Marketing Service, U.S. Department of Agriculture, checked Oct 2026
- Procedure for drug manufacturer licence (Form 24 and Form 25)Drug Licensing Authority, Andaman and Nicobar Administration, checked Oct 2026
- Categorisation of industries: Red category listState 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.