Chloramphenicol Palmitate

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Product Code 33404
Quality and Standards As per standard of Indian Pharmacopoeia
Production Capacity: Qty.
8 MT
(per annum)
(per kg.)
Value (Rs.)
Uploaded on December 2007


Chloramphenicol is the specific drug for control and cure of typhoid and broad-spectrum bacterial diseases.

Chloramphenicol finds extensive use through tablets and capsules while chloramphenicol palmitate is used to formulate syrups. The structural formula for chloramphenicol-palmitate is represented as

It lacks the bitter taste of chloramphenicol. It is hydrolysed in the upper intestinal tract into the parent drug, however, it does not share the topical efficiency of the parent drug. Its toxicity is like that of chloramphenicol. Chloramphenicol palmitate contains 55.5-59.5% of chloramphenicol i.e. approx. 174 mg Chloramphenicolpalmitate is equivalent to 100 mg chloramphenicol. It is an anti-bacterial drug and for an adult, the equivalent of 1.5 to 3.0 g of chloramphenicol daily in divided doses is required, for a child the equivalent of 25 to 50mg of chloramphenicol per kg. of body weight daily in divided doses is required.

Market Potential

Chloramphenicol is being produced both in small scale as well as in organized sector. At present in India there are a number of units registered with Secretariat of Industrial Assistance, Deptt. of Industrial Promotion and Policy, Ministry of Commerce and Industry, Government of India, New Delhi. Export of Chloramphenicol has shown increasing trend in recent years. Looking into the demand of Chloramphenicol-palmitate and its export potential, there is a good scope for setting up units in small scale sector.

Basis and Presumptions

  • The estimates are drawn for a production capacity generally considered techno economically viable for a model type of manufacturing unit.
  • The cost in respect of land and building, machinery and equipment, raw materials and the selling prices of the Chloramphenicol palmitate are those generally obtained at the time of preparation of the project report and may vary depending upon other various factors.
  • The wages of the workers are taken as per the prevailing labour wages laws.
  • The plant, equipment and machinery required for the manufacture of chloramphenicolpalmitate is either available or can be fabricated indigenously based on the designs, drawing and specifications worked out for the project.
  • Interest rate for fixed and working capital has been taken at 14%.
  • Scheme is worked out on two shifts basis of eight hours a day and 300 working days in a year.

Implementation Schedule

Preparation of Project report 1 month
Selection of site 2 months
SSI registration 1 month
Finance/loan from bank or Financial Institution 2 months
Power connection/building construction 3 months
Machinery procurement 3 months
Trial run 2 weeks
Actual Commercial Production 1 month

Technical Aspects

Process of Manufacture

Chloramphenicol is esterified by condensing with palmitoyl chloride (CH3 (CH2)14 COCI) in the presence of pyridine. The crude ester is obtained by pouring the reaction product into a large excess of diluted Hydrochloric acid and the whole mass is filtered. It is then washed with toluene dimethyl formamide. The pure ester is dried, recrystallised and pulverized before packing. Chemical equation of the reaction is as under.

Quality Control and Standards

Chloramphenicol-palmitate is practically insoluble in water, slightly soluble in alcohol, soluble in acetone, chloroform and solvent ether. It is fine white or greyish white powder, it melts between 870 to 950C. It should conform to the Standard of Indian Pharmacopoeia.

Production Capacity (per annum)

Installed capacity 8 MT
Value 92,00,000

Financial Aspects

Fixed Capital

(i) Land and Building Value



Land 1000 sq mtrs. @ Rs. 3000 per 3000000
Building (Office, Store, working sheds, Boiler Room, Laboratory etc.) 600 sq. mtrs @ Rs 5000 per 3000000
Bore well 100000
Total 6100000

(ii) Machinery and Equipments



Value (Rs.)

Stainless steel reactors (500 litres capacity) equipped with a reflux condenser and jacket for steam heating. 2 500000
Air circulated steam heated coiled tray drier, with vacuum drying system. 1 190000
Demineralised water plant 1 60000
Storage tanks for toluence/ dimethyl-formamide and Hydrochlomic acid 2 230000
Boiler 1 150000
Filteration unit 1 120000
Pulveriser 1 65000
Laboratory equipments (Spectrophotometer, Thin layer chromatography Centrifuge, oven and other laboratory glassware and equipments   300000
Total   1615000
Erection charge @ 10% of the cost of machinery and equipments   161500
Office furniture and equipments   80000
Pre-operative expenses   40000
Total   1896500

(iii) Total Fixed Capital



Land & Building 6100000
Plant & Machinery 1896500
Total 7996500

Working Capital (per month)

(i) Personnel




Amount (Rs.)

Chemist/Pharmacist 1 10000 10000
Manager/commercial Assistant 1 9000 9000
Analytical Chemist 1 8000 8000
Sales Representative 2 8000 16000
Accountant/ Clerk 2 5000 10000
Skilled Workers 4 4000 16000
Semi-skilled Workers 3 3000 9000
Boiler Attendant 1 5000 5000
Watchman and Peon 2 3000 6000
Total     89000
Perquisites @ 22%     19580
Total     108580

(ii) Raw Materials Including Packaging Requirement (per month)



Qty. Kg.

Rate (Rs.)

Value (Rs.)

Chloramphenicol Ind. 405 1500 607500
Palmitoyl Chloride do 324 140 45360
Chemicals like pyridine Toluene, dimethyl formamide do LS   50000
Packing material   LS   15000
Total       717860

(iii) Utilities (per month)



Electricity and fuel 40000
Total 40000

(iv) Other Expenses (per month)



Postage and stationery 2000
Telephone 3000
Consumable stores 4000
Repairs and maintenance 3000
Transportation 5000
Advertisement and publicity 5000
Insurance 700
Miscellaneous 5000
Total 27700

B. Working Capital (per month)

Raw Material 717860
Salary and wages 108580
Utilities and other expenses 67700
Total 894140
Working Capital (for 2 Months) 1788280

C. Total Capital Investment

Working capital for 2 month 1788280
Land and Building 6100000
Machinery and Equipments 1896500
Total 9784780

Financial Analysis

Cost of Production


Working capital for 1 year 10729680
Depreciation on building @ 5% 305000
Depreciation on machineries and equipments @ 10% 181650
Depreciation on office furniture and equipments @ 20% 16000
Interest on total Capital investment @ 14% 1369869
Total 12602199

Sales Turnover (per annum)



Rate (Rs)

Value (Rs)

Chloramphenicol-palmitate 8M.T. 1700 13600000

Net Profit (per annum)Profit


Sale turnover – Cost of production

Net Profit Ratio


Net profit per year × 100


Sales turnover



Rate of Return


Net profit per year × 100


Capital investment



Break-even Point

Fixed Cost


Depreciation on machinery and equipment 181650
Insurance 8400
Depreciation on building 305000
Interest on total capital investment 1369869
40% of other contingent expenses 321600
40% of salary and wages 43432
Total 2229951

Fixed cost × 100

Fixed cost + profit


= 69.09

Addresses of Machinery and Equipment Suppliers

  • M/s. Chemical Plant and Equipments
    Naroda, GIDC,
    Ahmedabad, (Gujarat)
  • M/s. Cadmach Machinery
    GIDC, Phase IV, Vatva,
  • M/s.Sethi Engineering Works
    27/772, Zorawar Singh Marg,
    New Delhi.
  • M/s. Rank and Co.
    Wazirpur Industrial Area,
    New Delhi-110052.

Addresses Raw Material Suppliers

  • M/s. National Solvent Corporation
    Devi Dayal Road,
  • M/s. Excel India Ltd.
    184-187 S.V Road,
  • M/s. Cemet Ltd.
    214, Hans Bhawan,
    Wing No. 1,
    Bahadur Shah Zafar Marg,
    New Delhi.
  • M/s. Manish Organic Ltd.
    National Chambers,
    Ashram Road,

For further information please contact

Information Manager
TIMEIS Project