What is a zinc chloride project report?
A zinc chloride project report is a detailed project report (DPR) for a plant that dissolves zinc ash or zinc oxide in hydrochloric acid, purifies the liquor and sells it as solution or technical grade powder. It sets out the process, machinery, raw materials, project cost, finance, five-year projections, DSCR and break-even.
Promoters use it to size the plant, get pollution and waste approvals and apply for a term loan; banks use it to judge whether the plant can repay.
Also known as: zinc chloride plant project report, DPR for zinc chloride manufacturing, zinc chloride business plan, zinc chloride feasibility report, project report on zinc chloride.
Zinc chloride manufacturing plant cost in India: sample economics
Our sample report models a 5 MT per day plant (1,650 MT per year at full capacity) running 330 days a year. It starts at 60% utilisation, reaches 80% in Year 5 and sells technical grade product at ₹1,17,000 per MT, ex-GST.
| Land and site development | 50.20 |
|---|---|
| Building and civil works | 164.39 |
| Plant and machinery | 381.15 |
| Other fixed assets | 42.38 |
| Contingencies | 27.28 |
| Preliminary and pre-operative | 16.64 |
| Working capital margin | 44.77 |
| Total | 726.81 |
| Promoter's contribution (25%) | 181.70 |
|---|---|
| Term loan from bank (75%) | 545.11 |
| Cash credit limit (separate) | 134.32 |
| Total project cost | 726.81 |
Term loan at 10.5% with a 6-month moratorium and 54 monthly instalments. The lowest yearly DSCR is 1.23. All figures are illustrative.
Zinc chloride manufacturing process, step by step
Most Indian plants make zinc chloride from zinc ash or dross and hydrochloric acid. The reaction is simple; the work is in purifying the liquor so that iron and heavy metals stay below what buyers accept.
- Screening zinc ash
Ash or dross is sieved to separate metallic lumps and dirt, and every lot is sampled for zinc content before it is charged.
- Acid leaching
Ash is fed slowly into hydrochloric acid in lined reactors. Metallic zinc in the ash gives off hydrogen and heat, so the reactors vent through a scrubber and are kept away from flames.
- Iron removal
An oxidising agent turns dissolved iron to the ferric form, and zinc oxide is added to raise the pH so that iron settles out as hydroxide.
- Zinc dust purification
Zinc dust stirred into the liquor throws out copper, lead and cadmium as a metal sludge.
- Filtration
Polypropylene filter presses give a clear liquor and an iron and metal cake that goes for authorised disposal or metal recovery.
- Evaporation
A steam-heated evaporator concentrates the liquor to a strong solution, or further to a molten mass for powder.
- Flaking and packing
The melt is flaked or dried and packed straight away in lined bags or drums, because zinc chloride pulls moisture from the air quickly.
Which route and product form should a zinc chloride plant choose?
The choice of zinc source sets your raw material cost and how much purification you need. The choice of product form sets your steam bill and who you can sell to.
| Zinc ash or dross with hydrochloric acid | Cheapest zinc source and the usual route for Indian plants. Zinc content and impurities vary from lot to lot, so iron removal and zinc dust purification are essential. This is the route in our sample report. |
|---|---|
| Zinc oxide with hydrochloric acid | Cleaner feed, simpler purification and no hydrogen from metallic zinc. Raw material costs more per tonne of zinc, so it suits battery or high-purity grades with better prices. |
| Zinc metal with acid or chlorine | Gives the purest product but uses the most expensive zinc. Usually limited to reagent and pharmaceutical grades. |
| Solution product | Liquor concentrated to a strong solution and sold in tankers or drums. Lower capital and fuel cost, but freight per tonne of zinc is higher, so buyers need to be close. |
| Powder or flake product | Needs more evaporation, a flaker or dryer and moisture-proof packing. Travels well and is the form most battery and chemical buyers order. |
Raw materials for zinc chloride and how much you need per tonne
Zinc chloride is about 48% zinc, so each tonne needs roughly 0.65–0.8 tonne of zinc ash and 1.6–1.8 tonnes of 30–33% hydrochloric acid, before process losses. In our sample, raw materials take 54.9% of sales, and zinc ash alone is 78% of raw material cost.
| Raw material | Share of cost | Year 3 (₹ lakh) |
|---|---|---|
| Zinc ash or zinc dross | 78% | 579.03 |
| Hydrochloric acid (30 to 33 percent) | 15% | 111.35 |
| Oxidising agent for iron removal | 4% | 29.70 |
| Zinc dust for purification | 3% | 22.27 |
| Total | 100% | 742.35 |
Zinc ash is priced on its zinc content and follows the zinc market, so buy on assay and test every lot.
Machinery for a zinc chloride plant
Hot acid chloride liquor attacks mild steel, so wetted parts are FRP, rubber-lined or polypropylene. The evaporator is the costliest item in the sample, followed by the leaching reactors.
| Machine | What it does | Sample cost (₹ lakh) |
|---|---|---|
| FRP lined leaching reactors with agitators | Dissolve zinc ash in acid | 68.61 |
| Acid storage tanks and transfer pumps | Store and dose hydrochloric acid | 30.49 |
| Purification and settling tanks | Iron removal and zinc dust treatment | 26.68 |
| Polypropylene filter presses | Separate clear liquor from cake | 38.12 |
| Corrosion resistant steam evaporator | Concentrates the liquor | 76.23 |
| Drum flaker or spray dryer | Turns the melt into flakes or powder | 53.36 |
| Acid fume and hydrogen vent scrubber | Cleans reactor vents | 30.49 |
| Steam boiler | Supplies steam to the evaporator | 34.30 |
| Bag filling and sealing machine | Packs product before it takes up moisture | 22.87 |
| Total plant and machinery | 381.15 | |
Costs are the sample report's estimates for a 5 MT per day plant. Get current quotations before you finalise.
Utilities and manpower for a zinc chloride plant
Evaporating water from the liquor is the main energy load, so fuel for the boiler matters more than electricity.
| Power and fuel | ₹119.55 lakh in Year 3 of the sample, about 8.8% of sales |
|---|---|
| Steam | From an on-site boiler, costed at ₹34.30 lakh, feeding the evaporator |
| Water | Acid dilution, scrubber liquor, boiler feed and washing of filter cake |
| Manpower | 35 people: 5 in management and supervision, 12 skilled operators and 18 semi-skilled and unskilled workers |
| Wage bill | ₹78.18 lakh in Year 1, rising 5% a year |
| Plant laboratory | Tests incoming ash for zinc and every batch for zinc content, iron and insoluble matter |
Licences and approvals for a zinc chloride plant
The approval that most often decides the start date is the hazardous waste authorisation, because zinc ash and dross are hazardous wastes.
| Business registration | Udyam (MSME) registration and GST registration |
|---|---|
| Pollution board consent | Consent to establish before construction and consent to operate before production, from the State Pollution Control Board, with acid fume scrubbing and effluent treatment in the design |
| Hazardous waste authorisation | Authorisation from the State Pollution Control Board under the Hazardous and Other Wastes Rules, 2016 to use zinc ash or dross as raw material, and for storing and sending iron and metal cake for disposal |
| Factory licence | Under the Factories Act and state rules, with safe handling of acid and hydrogen in the plant layout |
| Fire NOC | From the local fire authority, where required for acid storage and the boiler house |
| Product quality | Sold against the buyer's specification for zinc content, iron, insoluble matter and moisture; keep a test record for every batch |
Rules and categories differ by state. Confirm the list with your state board before you apply.
Who buys zinc chloride in India?
The largest steady demand comes from galvanising, where zinc chloride is the base of the flux that cleans steel before it is dipped in molten zinc. Battery, activated carbon and chemical makers buy smaller lots but pay more for tight iron limits.
- Hot-dip galvanising units and flux makers
- Dry cell battery manufacturers
- Activated carbon producers, who use it to activate the carbon
- Textile processing units
- Chemical and pharmaceutical companies, as a catalyst and dehydrating agent
- Chemical traders and distributors
Where a new plant wins: galvanisers produce zinc ash and also buy flux. A plant near a galvanising cluster can buy ash and sell product to the same customers, saving freight both ways.
Mistakes that weaken a zinc chloride project report
- Fixing one zinc content for all ash
Ash varies from lot to lot. A report that assumes high zinc content under-states ash consumption and over-states profit.
- Using laboratory grade prices for sales
Reagent grade sells at several times the price of technical grade. Revenue should use bulk ex-factory rates for the grade you will actually make.
- Leaving out cake disposal
Iron and heavy metal cake must go to authorised disposal or recovery. Its cost and the authorisation timeline belong in the report.
- Under-costing steam for evaporation
Powder needs much more evaporation than solution. A low fuel figure is the usual reason actual margins fall short.
- Pricing machinery in mild steel
Quotes for unlined steel tanks look cheap but corrode quickly in hot chloride liquor. Cost lined or plastic equipment from the start.
How NPCS helps you set up a zinc chloride plant
- Route and product formCompare zinc ash and zinc oxide routes, and solution against powder, for your buyers.
- Material balance and costingAsh and acid use per tonne from your supplier's assay, with steam and disposal costs.
- Bank-ready project reportProjections, DSCR and working capital in the format your lender wants.
- Approvals and layoutPlant layout, scrubber and storage plan, and the consent and waste authorisation list for your state.
NPCS's client list includes 2 zinc chloride assignments and 269 specialty chemicals assignments, for entrepreneurs, banks and companies in India and abroad.
What's inside the zinc 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
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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Zinc Chloride project report: frequently asked questions
What is the cost of a zinc chloride manufacturing plant in India?
A small plant selling only zinc chloride solution needs roughly ₹3–5 crore, while a 5–10 MT per day plant making powder needs about ₹7–12 crore, including land, building and working capital margin. Our sample report models a 5 MT per day plant at ₹726.81 lakh. These ranges are indicative; your report costs the plant for your capacity, product form and location.
How is zinc chloride manufactured from zinc ash?
Zinc ash is screened and dissolved in hydrochloric acid in lined reactors. Iron is oxidised and settled out, zinc dust removes copper, lead and cadmium, and filter presses give a clear liquor. The liquor is then evaporated to a strong solution or taken further and flaked into technical grade powder, which is packed at once because it absorbs moisture.
How much zinc ash and acid does one tonne of zinc chloride need?
Zinc chloride is about 48% zinc, so one tonne needs about 0.48 tonne of zinc. That is roughly 0.65–0.8 tonne of zinc ash, depending on its zinc content, and about 1.6–1.8 tonnes of 30–33% hydrochloric acid. Process losses add to this, so the report should use your supplier's assayed zinc content.
Is zinc chloride manufacturing profitable?
It can be when zinc ash is bought on assayed zinc content and the product is sold to steady galvanising, battery and chemical buyers. In our illustrative sample, a 5 MT per day plant earns a 13% return on investment in Year 3, breaks even at 46% of capacity and pays back in about 4.6 years. Zinc prices move these figures more than anything else.
Which licences are needed to start a zinc chloride plant?
You need Udyam and GST registration, consent to establish and operate from the State Pollution Control Board, a factory licence and a fire NOC. Because zinc ash and dross are hazardous wastes, using them as raw material also needs authorisation from the state board under the Hazardous and Other Wastes Rules, 2016. Apply for this early, as it can decide the start date.
Is this zinc chloride project report PDF free, and can I use it for a bank 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, raw material source and lender.
Should a new plant make zinc chloride solution or powder?
Solution is cheaper to make because it needs less evaporation and no flaker, but it costs more to transport per tonne of zinc and suits nearby buyers. Powder needs more steam and moisture-proof packing, yet it travels well and reaches battery and chemical buyers. Many plants start with solution for local galvanisers and add powder later.
Sources and references
- Toolkit on the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016National Productivity Council, Government of India, checked Oct 2026
- List of units registered with CPCB for reprocessing zinc ash, zinc dross and zinc skimmingsCentral Pollution Control Board (hosted by Punjab Pollution Control Board), 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.