Startup Guide for Chemical Manufacturing Business

Starting a chemical manufacturing business is a big investment. It involves large and capital-intensive construction, the purchase of expensive equipment, and the hiring of different kinds of professionals. What does one need to consider when starting up so that he gets it right from the beginning?

Read from our basic guide.

Chemical manufacturing is a capital-intensive business and typically, a large-scale one. Building a chemical plant involves the construction of an entire facility housing not only the processing unit but also the offices that take care of the administrative and management functions of the entire company. For operating one needs to purchase expensive equipment and vehicles, hire people from utility personnel to machine operators, accountants, engineers and managers. Finally coordinating functions to ensure a continuous and smooth flow of the processes and meeting environmental standards.

Factors to Consider When Starting a Chemical Manufacturing Plant

Before a chemical facility is built, intensive studies are done to come up with cost and profit projections, determine plant design feasibility, test marketability and establish the viability of the project. Some of the basic factors to consider include:

Similar Articles

  • Market – for a plant that would manufacture intermediate product, will there be other industries that will need such raw materials for their own manufacture? If the plant plans to manufacture consumer goods like soaps, toothpastes, bleach, is the market enough to support such business?
  • Resources – where would the raw material come from? If the material will be sourced locally, can local resources sufficiently provide for the capacity of the operation? Where would the manpower come from? Is there enough skills among the locals for all the jobs available, or would the company hire people from other places?
  • Location – how is the proposed site located in relation to the source of the raw materials and to the intended market? Will it conveniently and cost-effectively receive raw material shipment and dispatch products for distribution? Does the site conform to the land use classification of the place and meet all other regulatory requirements?
  • Waste disposal – how will manufacturing waste be disposed? Is the proposed location suited for the waste disposal design of the plant?
  • Viability – considering all these factors, can the project be operated profitably?

Typically, chemical manufacturing plants are situated near the source of raw materials and near end users of their products. That is why it is usual for them to be near ports and be located near other industries – industries to which they sell the substances they produce.

Chemical manufacturing has certain adverse effects to the air, soil and water, which in turn could negatively affect people, plants and animals. As such, it is heavily regulated by the government. A chemical plant’s location must meet zoning regulations and its operation must conform to strict standards of environmental safety. It is subject to periodic tests and is penalized for non-conformance.

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460 Comments

  • tarun gangwar said on March 14, 2010
    location : bareilly, u.p. india. i still have to start a chemical plant(something which manufactures chemicals like sulfuric acid etc. ) i wanted to know the approximate capital required to setup a plant of approx. 300 metric ton per day production capacity. and what are profit margins in sulfuric acid and other such chemicals. and what are the business prospects. please do help.
  • Rendani said on April 8, 2010
    Business Located in Limpopo. I want to start a chemical manufacturing business, like cleaning products. I need to know the start up cost and what machines are need.
  • SWAMYA P ROUT said on April 28, 2010
    location:paradeep port, orissa, india. i want to start a oxygen plant. i wanted to know approximate capital required to built a plant..
  • Amit Agrawal said on June 2, 2010
    I am Amit Agrawal. I did my Engineering in Chemical.And I want to do business in chemical. So, Please help me. What kind of business will be suitable for me? Please tell me as soon as possible. Thanks & Regards Amit Agrawal
  • ALAGARAJA.S.N said on June 3, 2010
    Hai dude's i am basically a chemical engineer and working in lubricant industry and i am interested to start a business producing water chemicals and textile chemicals. Please reply me how is the market for these chemicals?
  • pragnesh said on June 12, 2010
    Location: khanpur, anand, gujarat, india. I have done graduate in chemistry. Now i want to build chemical manufacturing company. can you please help me on which product i should do business. and approximate estimate of investment.
  • John said on July 28, 2010
    We can provide technology and machinery for the production of Industrial cleaning material, Detergents, Body Wash and other personal care products. contact us dubaico2007@yahoo.com
  • JEFFREY M BABUSI said on August 3, 2010
    truly i dont know much into details about chemistry but have past through it during my Engineering qualification. i want to own a plant that manufacture water chemicals and drugs. in my country i'll be the first one to do that. in the process of setting one i ve "Patent" the idea. so i need experts to help me. am a tru business man
  • G.PRADEEP said on October 4, 2010
    Hi i'm Pradeep and i'm into business for the past 8 years. My interest is to start up a chemical plant and finally i have finalized to start a water treatment chemical plant (HEDP) in Tiruchirapalli, TAMILNADU. Kindly do help me with your feedback on this idea.
  • hitesh solanki said on October 7, 2010
    hi? located in gujarat vadodara ,i am B.sc chemistry .i want to start chemical business ,as a distributor ,mini manufacturing plant please you guide me.
  • Anjaneyulu said on October 10, 2010
    i am science graduate i want to start a small investment chemical plant in Hyderabad plz guide me which chemical manufacturing is suitable for me .
  • Sudhnshu said on October 14, 2010
    Hi, I m Sudhanshu from delhi. I have a better expert to manufacture water treatment chemicals and want to start a proprietorship business. I want to know how to start a proprietorship business of water treatment chemicals like small business and i also want to know about how to get certification or License for this small Manufacturing process.
  • DG said on October 22, 2010
    Hi, i am DG from Chennai. I have Indenting Agency for Soda Ash, DAP, SSA and PET Resin. Am looking for distributors all over India. If interested contact docshopracing@gmail.com
  • Eric said on December 1, 2010
    Hi, I am Eric from Malaysia. I have looked through the situations in Malaysia, Singapore and Australia. I want to start palm oil products and raw material from rainforest. Please guide me along.
  • Dr.deepa.kamat said on December 7, 2010
    i want to start a chemical producing industry. plz tell me complete details for start up, any courses r their to teach us? which chemical production is profitable
  • Ravi said on December 7, 2010
    Want to start a small scale chemical manufacturing unit. What registrations and clearances are required. Chemical we want to manufacture is not in the small scale permissible list for chemicals
  • RAVINDRA JAIN said on December 20, 2010
    Please let me know the detail process for setting up of sulfuric acid manufacturing plant at jorhat(assam)
  • Ramakrishna said on December 26, 2010
    I am Ramakrishna . I did my Engineering in Chemical. So, Please help me. What kind of business will be suitable for me? Please tell me as soon as possible. I want to start a small scale chemical manufacturing unit. What registrations and clearances are required. Chemical we want to manufacture is not in the small scale permissible list for chemicals....Thanks & Regards
  • mohammad iqbal said on January 11, 2011
    i m a petrochemical engineer.want to start a small scale manufacturing unit.plz guide me for a profitable venture.
  • m.pradeep said on January 19, 2011
    i want to start small scale chemical plant in salem, help me for complete details and a list of chemicals to start up
  • foolish said on January 22, 2011
    I think its foolish for all these people to ask one person about the market and required capital. Do your own market research; if you want to manufacture something look at the machinery you need and do your on capital cost calculations. How can you expect someone in one part of the world to give you a market analysis for a place in another part of the world (where you reside incidentally).
  • Sam said on January 29, 2011
    Hi, i m m.sc in chemistry and wana start small scale plant in up or uk, plz help me to find out the best product that i can manufacture.
  • pratham jain said on February 13, 2011
    i am a commerce graduate. somehow i am interested in starting up my own chemical business. guide me what product should i start with and also the approximate investment required.
  • Iruthayaraj said on February 15, 2011
    I want to start small chemical based manufacturing unit in Chennai or Madurai. i have completed B.Tech chemical and have experience in fertilizer & petrochemical company. Please expedite which would be suitable to me and expedite the details. Thanks & Regards, Raj
  • nutan said on February 15, 2011
    I want to set up a chemical plant for refrigerant here in Delhi-NCR area. I want to know the approximate investment required.
  • Eng.Omar Omari said on February 21, 2011
    Aleppo,Syria. i have chemical factory located in Aleppo,Syria it was used to produce chemical materials for paints and i want to activate it with any other suggested chemical material. any suggestions will be appreciated any partnership is welcomed.
  • sudeep paralkar said on March 13, 2011
    I am Chemical Engineer with over 16 years experience currently working in German MNC manufacturing agro-chemiclas & pharmaceutical products. I am interested in starting a chemical company in Fine Chemicals & Specialty Chemicals using Green Technology. Of course Detailed Feasibility Report is required. I am also looking for partner for the above.
  • Manish said on March 15, 2011
    Hi.. i'm from ludhiana and want to start a chemical factory so please kindly guide me the whole process what should i do, how funds are required and in which branch of chemicals to deal in. Please guide me totally new to it.
  • NK Verma said on March 15, 2011
    We are based at Ludhiana (Punjab). We intend to start domestic/industrial cleaning products, like soap, liquid soap, washing powder, liquid phenol etc. kindly advise in this regards. We intend to start on micro basis the later on project capacity can be enhanced. Thanks
  • wale olabintan said on March 21, 2011
    I am a Nigerian. I had B.sc in Chemical Engineering and MBA (financial Management). I intend to start domestic/industrial cleaning products, like soap, liquid soap, washing powder, liquid phenol etc. kindly advise in this regards.
  • SK SHUNY AHMED said on April 2, 2011
    I from Kolkata , want to start chemical Plant like Water treatment Chemical, Engine Chemical , Textile Chemical what will be Very low cost plant, how much money is necessary to start this & also good future . Please give me advice how I will start it.
  • bhavesh said on April 19, 2011
    i from chennai ,want to start a chemical distribution, basically a commerce graduate. can you help me with the procedure and how much capital need, suggest me the methods to start ..
  • ARUN AGRAWAL said on April 19, 2011
    we need to manufacture sulphuric acid. The plant we are looking for shall be the smallest. we need to produce 1-2 m.t. of sulphuric acid per day. sulphuric acid is our raw material for producing alumina ferric. our location is state jharkhand of india, and we are 40 km away from capital town ranchi. we are in ramgarh distt. my mobile no. 09204500360
  • kanval said on May 13, 2011
    hi we need best and unique agro product for sell with best margins and result also. we have big distribution channel in all over m.p. cont. no.-8817469796
  • hemal patel said on May 17, 2011
    i want to start small scale chemical processing unit so kindly guide me asap and i want to start my business in gujarat. thanking you
  • samree said on May 17, 2011
    dear sir/madam i am commerce graduate and mba marketing. dont have any knowledge of chemical or purely chemical related product. but having will to do the business, ya its a completely strange, but to achieve my dream i need the knowledge of chemical by which i can select a start either by any product or any thing so plz kindly suggest me something.
  • monish said on May 30, 2011
    My name monish shah, i have completed my master in quality and productivity management in S P University from anand, gujarat, india. I want to start copper small chemical plant in Anand. Could you tell me how to start and what are the basic license and documentation require for these and should i get any financial loan from Govt.. so please suggest me.
  • A.JAYAKUMAR said on June 5, 2011
    Business Located in tamilnadu, Trichy. I want to start a chemical manufacturing business, like cleaning products and car care products. I need to know the production formula and project cost and what machines are need.
  • NATARAJAN said on June 12, 2011
    I WANT TO START LIQUID FERTILIZER UNIT AT MADURAI TAMILNADU STATE. I WANT TO KNOW THE PRODUCTION FORMULA AND MACHINE DETAILS
  • molly said on June 13, 2011
    My name is molly nyakujara from harare Zimbabwe. I have a chemical engineering degree and would like a small scale business of manufacturing shampoo,conditioners and liquid detergents. Can you please advise me on what type of equipment i need and where i can get the recipes
  • sajid said on July 21, 2011
    sir, i want start chemical manufacturing(detergent,liquid soap etc.) unit in kerala India .pls send details
  • anush goyal said on July 27, 2011
    Hi i am Anush Goyal from chandigarh,punjab,india i am planing to manufacture sulfuric acid approx capacity 400 metric tons per day can you tell the approx capital required for the same and its utility near punjab and also the profit margins
  • Shripad Jadhav said on August 8, 2011
    We have Profitable Running Chemical plant for sale, if you are interested pls drop email shripadjadhav@yahoo.com to send u details or call me 09819890153.
  • Gunjawate Sanjay Jotiram said on August 26, 2011
    I am science graduate having neem oil,and neem cake manufacturing unit at 42 km away from satara (Maharastra),I want solvent extraction process and also biodisel manufacturing process with financial partner
  • viraj prabhu said on September 13, 2011
    i am interested in manufacturing ammonium bi carbonate (about5- 10 mt per day )in mumbai/gujrat. i want to know every detail about guidelines ,costing, marketing etc
  • sandeep said on September 29, 2011
    Dear sir, This is sandeep i am planning to start detergent soap and surf powder manufacturing, so what are the requirements are needed. So please send details on my id.
  • Vijesh said on September 30, 2011
    Vijesh from Tamilnadu.I would like to put up a petrochemical factory in tamilnadu (Bitumen based water proofing products)Could anyone help me by providing some valuable informations on products ,equipments and other details. My id is vijeshraga@gmail.com
  • abhishek a. tripathi said on September 30, 2011
    i'm abhishek from vapi(gujrat state). i want to start mineral(packaged drinking)water plant.what is the process and investment i have needed to start this plant at start up level(small level)? what's the process of funding or loaning from banks? please help me by providing some valuable information of equipments & other details?
  • yeasir said on November 8, 2011
    I want to setup a caustic soda manufacturing plant in bangladesh. my another interest is acrylic emulsion binder. which one is most viable in bangladesh. plz tell me.
  • engineer said on November 23, 2011
    I am in water treatment business since from last 6 years,i want to know the basic raw materials use to manufacture water treatment chemicals like cooling water chemicals, boiler chemicals, etp chemicals etc and also the proportioned to be used.
  • mohd huzair said on November 25, 2011
    hai this huzair i want start one new chemial powed factory so waht kind of document i want to show for take the liceance so pls tell me deatils abt this
  • parth said on November 26, 2011
    i am from ahmedabad, gujrat.i have done Phd in organic chemistry and i have 7 years experience of r&d. now i want to start my chemical unit. please give me details about this.
  • Suchandan Samanta said on December 2, 2011
    I am Suchandan Samanta from Kolaghat,Purba Medinipur,West Bengal. I had B.sc . I intend to start a business of domestic/industrial chemical products, like soap, liquid soap, washing powder, liquid phenol, bleaching powder, phenol, etc. kindly advise in this regards. My contact no.is 9851975490 and my mail ID mail_suchandan@sify.com
  • Vivek Anand R said on December 11, 2011
    Please let me know all details and capital about opening food testing lab in coimbatore.
  • arunabh said on December 16, 2011
    hello sir i want to start oxygen plant in bihar how much it will cost to start the plant. plz help me out..
  • AMAL PAL said on December 18, 2011
    I am a Chemical Engineer. I want to start a manufacturing unit of Ethyle alcohol in West Bengal. Please tell me whether it is suitable business to start in West Bengal and What is the Project Cost.
  • Dan said on December 21, 2011
    I am in kenya based in nakuru and nairobi with a Bsc.Industrial Chemistry. I want to start an industry. Please advice me on which product suite kenya market and how to work it out. Thank you.
  • anita said on December 26, 2011
    i want to set up a household chemical cleaning factory,but i need a list of machines i could use for 300litre daily production.most of the ones i see online don't meet my specifications. I hope there is someone here who has succeeded in this sphere to give concrete advice.
  • K.Y.Ravindra said on December 30, 2011
    I already started manufacturing the waterproofing chemicals/Paints. I need expert in production supervisor to look after my project for best manufacturing process. and also guide for the formulations for the same.
  • arun agrawal said on January 19, 2012
    i want to establish a chemical industry. how much capital is required for this industry
  • Sello Makhamate said on January 27, 2012
    My business partner and I are in the process of wanting to establish a cleaning chemicals manufacturing plant. We need Advice. Thank you in advance. Kind regards, Sello Makhamate
  • rahul said on February 4, 2012
    i want to set up an industry manufacturing hydrochloric acid in jamshedpur , jharkhand .. kindly , let me know the investments and other details
  • Mohd junaid said on February 10, 2012
    Sir, i want to establish a washing powder and detergent soap factory in utter pardesh (India) i have done mba so please provide me information according structure cost. govt rule and other thing
  • shibi rajan said on February 23, 2012
    sir, i am very interested to start the plant for making the detergent powder. Please advice for this. And advice how for that making) detergent powder, where we get the raw material and where we get the machine and how much cost of that machine and the cost of that material.
  • alpesh said on March 13, 2012
    sir, i want to establish a chemical factory in ahmedabad. so please guide me to some idea.
  • Mohmed noor said on March 18, 2012
    Hi I wish to start chemical distribution business in Tirippur ,Tamil nadu. I'm planning to supply bleaching chemicals like hydrogen peroxide for textile industries, please tell me how much initial investment is required.
  • Annarajesh said on April 26, 2012
    Thirunelveli, Nanguneri(TK), 627107, Tamil Nadu, India. I am an Polymer Technologist, More than 7 years Exp. in Industries of Plastics, composites, So please guide me, which one suitable business in my place and how i stat up.. Warm Regards, Eng.Anna Rajesh
  • V N Agarwal said on April 28, 2012
    I am a retired chemical engineer with approx. 35 yrs of manufacturing of speciality chemicals. Now I want to start my own business,can anybody help and guide me. I am staying at Bharuch, Gujarat. Thanks,
  • Nitin Patel said on May 1, 2012
    Hi, i m m.sc in chemistry (with advanced organic chemistry) and i wont start small scale plant in gujrat. so plz help me to find out the best product that i can manufacture better in gujrat.
  • Bishnupran Chetia said on May 3, 2012
    Hello sir,i am an M.Sc Instrumentation engineer and i wanted to know how to established an oxygen and soda manufacturing plant in guwahati, assam(india), but i don't know much about them, kindly tell me what is the total investment to launched these two plants.
  • amir yousaf said on May 8, 2012
    Hi my name is amir i Want to start a small scale chemical manufacturing unit to make 2k thinner in uk . my question is what registrations and clearances are required in uk and who to contact also i need a list of machines i could use for 300 liter daily production. I hope there is someone here to give me a concrete advice, regards
  • sachin deshmukh said on May 14, 2012
    we want to start small scale chemical manufacturing plant near mumbai, Maharashtra, We are looking for prospective investor to invest in my projects. Our projects report is ready, if anyone is interested kindly contact us Email id - sachin@maeganchemicals.com, Mobile no 9821514157.
  • Sanjay said on May 15, 2012
    i want to start detergent manufacture unit at Odisha please help me where i can get chemicals
  • Sandeep said on May 19, 2012
    Sir, my name sandeep i want to start a chemical business of lubricants & also i am a diploma chemical engg. Plz help me in delhi
  • sharad said on May 31, 2012
    sir, i want to establish a chemical factory . so please guide me to some idea.
  • Sachin said on June 4, 2012
    I need help to setup thinner chemical plant in Delhi. Let me know to whom I should contact.
  • prakash nama said on June 11, 2012
    sir.i want to establish a chemical factory in rajasthan .so plz guide me to some idea.
  • bangkit g said on June 13, 2012
    Business location : Indonesia. Hi I'm bangkit. I have done graduate in chemical engineering. I want to build chemical manufacturing business like aroma chemical and essential oil. Please guide me about process, marketing, start up the plant and anything about this business. Thanks.
  • ashish said on June 26, 2012
    i have an investment of 300000 can i set a chemical manufacturing unit
  • Sivaperumal beginner adviser said on June 28, 2012
    Sir, I am 30 years experience in Pharmaceuticals and chemicals industry in process, commercial, logistics, and engineering consultant in tamilnadu. whom are interested to contact to start an new business in tamilnadu and andhra pradesh can contact me for best project profiles. SIVA 09362991092 sivasivaperumal@sify.com

    09362991092 || Consultant

  • bharat said on July 2, 2012
    Hello sir, I want to start a chemical manufacturing plant so plz help me how much investment first time. How can I loan for bank how to prepare a plant project please help reply me I waited for your mail
  • vivek yadav said on July 10, 2012
    hallo sir, i am graduate in chemical engg. i want to start set up a small scale urea formaldyhide resins . please tell me the total project cost and about loan and about registration, area and marketing, raw materials etc.
  • TOMY GEORGE K said on July 11, 2012
    Wants to start Paint Manufacturing Unit, at Angamali, Eranakulam Dist. Which company can help me to install machinery and provide other consultancy. pls help, regards Tomy
  • Khal Khal said on July 24, 2012
    We are interested in setting up large scale manufacturing facility in Saudi Arabia. We are looking for ideas and project reports for polyurethane based industries, or other chemical industries. Full project summary and ideas are welcomed. We will honor the idea developer by share in the project.
  • nitin patel said on July 30, 2012
    hi i nitin patel from gujarat i am b.sc. with chemistry. we are interested in small scale plant of phthalogen blue dye. we are looking for investor for this project in gujarat. i have 13 years exp in this field.
  • zemen said on July 31, 2012
    i am chemical engineer i want to make washing powder and detergent soap in small scale please advice me.
  • Sadiq said on August 3, 2012
    I am Sadiq M B from Oman I seated solid surface factory I want to know what type of machinery required and need good marketing executive sale manger an factory manager
  • neha said on August 3, 2012
    I am neha from new delhi, India i want to manufacture shampoo , for that I want to know the permission and license required for this
  • Prajyot R. Gurav said on August 3, 2012
    Hello, i am Prajyot and i completed M.Sc. In organic chemistry from India, Maharashtra in Mumbai university and i want to open a new plant of Ethanol. I have ready project, location n raw material so plz let me tell that procedure of permission n license?
  • Ogunrinde, S. A. said on August 3, 2012
    I am trying to establish a medium sized Lubricant Plant in Lagos Nigeria and I will appreciate your guidance in helping me to determine the minimum start up cost. I plan to produce about 5,000 MT of lubricants per month, and I want you to advice on the needed equipments to achieve this feat, manufacturers of such equipments, relevant catalogs and any other information you consider relevant. Information on manpower requirement will also be appreciated.
  • H.K.SHARMA said on August 5, 2012
    I want to start manufacturing unit in delhi of rust converter chemical used for rusted steel to prevent further detonation as home industry. Please send detail.
  • Ali.Hawaldar said on August 6, 2012
    Hello sir, myself Ali hawaldar from Navi Mumbai, Maharashtra, India I Have done my graduation in Chemistry and Post graduation In Marketing, I want to start my own Chemical Business But before i think i have to work in small chemical company to Gain Experience, Sir what you will Guide Further to this. please help your Reply Will be Highly Appreciated. Thanking You Ali.Hawaldar
  • Patel Dhiren said on August 8, 2012
    Hello Sir, Myself Dhiren post graduate in Chemistry & I lived in City Baroda, Gujarat, India. I have 7 years experience in Pharmaceutical field as Quality Control officer.I just want to start my own chemical trading business.Give me some ideas for the same. I have very limited money to invest in business. Please Favor me.
  • rajiv said on August 11, 2012
    hi i lived in indore mp. i want start a small chemicals or adhesives unit at indore. i am a chemist in lab. so plz any projects for me plz suggest. thanks
  • arpit gupta said on August 11, 2012
    shahjahanpur, u.p. india. i want to start a chemical plant(something which manufactures chemicals like hydrochloric acid. ) i wanted to know the approximate capital required to setup a plant of approx. 100 metric ton per day production capacity. and what are profit margins in sulfuric acid and other such chemicals. and what are the business prospects. please do help as soon as possible please help
  • shivaji nikam said on August 12, 2012
    i want to start agrochemical weed killer 2,4 d amine salt production. so i want consultant for this product
  • priya said on August 12, 2012
    we are manufacturers of cosmetics....we are in need of shampoo formulation...so could you kindly send those formulas and ingredients for processing shampoo
  • BIPIN DHAL said on August 19, 2012
    i am a graduate. i have more experience in erp chemical. so a want to start a chemical and water proofing factory in orissa. so pls send me the procedure for prepared water proofing which is used in construction line.
  • Sreenath K said on August 20, 2012
    Hello sir, I am Sreenath with Msc in Organic chemistry, I want to establish a small scale chemical industry for producing fine chemicals, in Hyderabad or Ranga reddy divisions , would like to know the estimation of the amount required to set up the plant.
  • pankaj s said on August 22, 2012
    i am dip in chem , i want to start grease manufacturing unit in mumbai. what are the business prospects. please do help as soon as possible.

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