Activated Carbon Manufacturing Industry: A Comprehensive Overview
Introduction
Activated carbon, also known as activated charcoal, is a highly porous material with extensive applications across various industries, including water purification, air filtration, gold recovery, and pharmaceuticals. This essay provides a detailed analysis of the activated carbon manufacturing industry, covering aspects such as raw materials, machinery, labor, transportation, space requirements, total expenditure, marketing, and profitability.
Raw Material Availability and Cost
The primary raw materials for activated carbon manufacturing are:
- Coconut Shells
- Abundantly available in tropical regions.
- Cost: ₹4,000-₹6,000 per metric ton.
- Coal (Bituminous or Lignite)
- Available in mining regions.
- Cost: ₹3,000-₹4,500 per metric ton.
- Wood
- Suitable for large-scale production.
- Cost: ₹3,500-₹4,500 per metric ton.
Availability depends on the geographical location. Regions with agricultural or mining activities have easier access to these materials.
Machinery Cost
- Semi-Automatic Machinery
- Includes rotary kilns, crushers, sieves, and mixers.
- Cost: ₹30-35 lakh for small-scale setups.
- Fully Automatic Machinery
- Includes advanced rotary kilns, automated sieves, packaging units, and carbonization chambers.
- Cost: ₹75-90 lakh for medium-to-large-scale setups.
Both setups require auxiliary equipment like conveyor belts and pollution control systems, costing an additional ₹10-15 lakh.
Labor Requirements
- Semi-Automatic Setup
- 10-15 workers for operations and maintenance.
- Monthly labor cost: ₹1.5-2 lakh.
- Fully Automatic Setup
- 4-6 skilled operators.
- Monthly labor cost: ₹1-1.2 lakh.
Transportation Expenditure
- Raw Material Transportation
- Average cost: ₹1,000-₹1,500 per metric ton (depending on distance).
- Finished Product Transportation
- ₹1,500-₹2,000 per metric ton for domestic markets.
Space Requirements
- Semi-Automatic Setup
- 8,000-10,000 sq. ft.
- Fully Automatic Setup
- 12,000-15,000 sq. ft.
Space rental costs range from ₹25,000-₹50,000 per month depending on the location.
Total Expenditure
| Expense | Semi-Automatic | Fully Automatic |
|---|---|---|
| Machinery | ₹30-35 lakh | ₹75-90 lakh |
| Auxiliary Equipment | ₹10-15 lakh | ₹10-15 lakh |
| Raw Material (per month) | ₹2.5-4 lakh | ₹4-6 lakh |
| Labor (per month) | ₹1.5-2 lakh | ₹1-1.2 lakh |
| Transportation (per month) | ₹1-2 lakh | ₹2-3 lakh |
| Space (annual rent) | ₹3-6 lakh | ₹6-10 lakh |
| Total Initial Setup | ₹45-60 lakh | ₹90-120 lakh |
Marketing and Target Audience
Industries Buying Activated Carbon:
- Water Treatment Plants
- Activated carbon is used for removing impurities and odors.
- Pharmaceuticals
- Utilized for purification processes.
- Gold Mining
- Used in the recovery of gold through the carbon-in-pulp process.
- Air Purification Companies
- Filters and air purifiers.
- Food and Beverage Industry
- Used for decolorization and purification.
Marketing Strategies:
- Direct partnerships with industries.
- Online presence via B2B platforms like IndiaMART and Alibaba.
- Trade shows and industry expos.
Profitability Analysis
- Production Capacity
- Semi-Automatic: 5 metric tons per day.
- Fully Automatic: 10 metric tons per day.
- Selling Price
- ₹80,000-₹1,20,000 per metric ton (depending on grade).
- Monthly Revenue
- Semi-Automatic: ₹12-18 lakh.
- Fully Automatic: ₹36-54 lakh.
- Monthly Profit
- Semi-Automatic: ₹2-3 lakh.
- Fully Automatic: ₹10-15 lakh.
Coconut Shell Suppliers
- Supplier: IndiaMART
- Purchase Link: Coconut Shell on IndiaMART
- Details: Raw and crushed coconut shells. Available in bulk quantities.
- Price: ₹4,000–₹6,000 per metric ton.
- Supplier: TradeIndia
- Purchase Link: Coconut Shell on TradeIndia
- Details: High-quality coconut shells for activated carbon production.
- Price: ₹5,000–₹6,500 per metric ton.
Coal Suppliers (Bituminous and Lignite)
- Supplier: Coal India Limited
- Purchase Link: Coal on Coal India
- Details: Bituminous coal suitable for carbon manufacturing.
- Price: ₹3,000–₹4,500 per metric ton.
- Supplier: IndiaMART
- Purchase Link: Coal on IndiaMART
- Details: Lignite and bituminous coal in bulk.
- Price: ₹3,500–₹4,500 per metric ton.
Wood Suppliers
- Supplier: Alibaba
- Purchase Link: Wood for Activated Carbon on Alibaba
- Details: Hardwood and softwood for carbon production.
- Price: ₹3,500–₹4,500 per metric ton.
- Supplier: TradeIndia
- Purchase Link: Wood Suppliers on TradeIndia
- Details: Bulk wood for industrial use.
- Price: ₹3,500–₹4,800 per metric ton.
Starting an activated carbon manufacturing business in India can benefit from various subsidies and support programs offered by both the Central and State Governments. Here’s an overview of the key schemes available:
Central Government Schemes
- Credit Linked Capital Subsidy Scheme (CLCSS):
- Purpose: Facilitates technology upgradation in Micro, Small, and Medium Enterprises (MSMEs) by providing a capital subsidy.
- Assistance: Offers a 15% upfront capital subsidy on institutional finance for eligible machinery and equipment.
- Eligibility: Applicable to MSMEs across various sectors, including activated carbon manufacturing.
- Reference: MSME Revised Guidelines on Credit Linked Capital Subsidy Scheme
- Pradhan Mantri MUDRA Yojana (PMMY):
- Purpose: Provides financial support to micro and small enterprises.
- Assistance: Offers loans up to ₹10 lakh under three categories: Shishu (up to ₹50,000), Kishor (₹50,001 to ₹5 lakh), and Tarun (₹5 lakh to ₹10 lakh).
- Eligibility: Available to non-corporate, non-farm small/micro enterprises.
- Reference: MSME Loan Scheme 2025 – ClearTax
- Zero Defect Zero Effect (ZED) Certification Scheme:
- Purpose: Encourages MSMEs to adopt quality manufacturing processes with minimal environmental impact.
- Assistance: Provides up to 80% subsidy for obtaining ZED certification.
- Eligibility: Applicable to all MSMEs registered under the MSME Act.
- Reference: Schemes for MSMEs | Make In India
- National Bamboo Mission (NBM):
- Purpose: Promotes bamboo cultivation and its utilization in various industries, including activated carbon production.
- Assistance: Provides support for setting up bamboo-based industries, including subsidies and technical assistance.
- Eligibility: Entrepreneurs involved in bamboo processing and product development.
- Reference: National Bamboo Mission – myScheme
State Government Schemes
State Governments offer additional incentives to promote industrial development. For instance:
- Tamil Nadu Capital Subsidy:
- Purpose: Encourages investment in plant and machinery for MSMEs.
- Assistance: Provides a 10% capital subsidy for micro enterprises, subject to a maximum of ₹5 lakh.
- Eligibility: Applicable to new and existing micro enterprises in Tamil Nadu.
- Reference: Capital Subsidy – MSME Tamil Nadu
Recent Developments
In July 2024, the Indian Government announced a new credit guarantee scheme to support manufacturing-focused MSMEs:
- Credit Guarantee Scheme for MSMEs:
- Purpose: Enables MSMEs to acquire machinery and equipment without collateral.
- Assistance: Provides a guarantee cover up to ₹1 billion (approximately $12 million) through a self-financing guarantee fund.
- Eligibility: Manufacturing-focused MSMEs seeking to upgrade or expand their operations.
- Reference: India announces credit guarantee scheme for small industries in manufacturing
Application Process
To avail these subsidies and support:
- Registration: Ensure your business is registered as an MSME under the MSME Act.
- Documentation: Prepare a detailed project report outlining the business plan, financial projections, and technology requirements.
- Approach Financial Institutions: Contact banks or financial institutions that facilitate these schemes.
- Submit Applications: Apply through the respective scheme portals or through authorized channels.
It’s advisable to consult with local MSME Development Institutes or industry associations for personalized guidance and to stay updated on any new schemes or changes to existing ones.
navlistIndia Announces Credit Guarantee Scheme for Small Industries in Manufacturing turn0news20