Plaster of Paris

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Product Code 21304 and 21305
IS 2333:1992
IS 1288:1982
Quality and Standards IS 4738:1998
IS 2547 (Part 1):1976
IS 2547 (Part 2):1976
Production Capacity: Qty. Quantity: 900 MT.
Value : Rs. 3780000
Uploaded on July 2007


Plaster of paris which is calcium sulphate with half molecule of water of crystallisation (CaSo4 ½ H2O) possess outstanding property of setting and subsequent hardening when mixed with water. Plaster of paris is extensively used in ceramic industry for the preparation of models, moulds and plaster of toys. It is also used as a main raw material in the manufacture of toys and statues, chalk crayons, gypsum plaster boards, decorative picture frames, besides a wide range of applications in the interior decoration of buildings and other establishments.

Market Potential

There is a growing industrial activity in the field of whiteware, such as pottery, sanitaryware, chemical and electrical porcelains, requiring large quantities of plaster of paris for making moulds and preparation of moulds. The demand for the product is ever increasing. There is also considerable demand for the plaster of paris arising from a large number of shops and establishments engaged in making statues and interior decoration as well as decorative plaster boards for false ceiling etc., which is in turn creating a good scope for setting up new units.

Basis and Presumptions

  • It has been taken into consideration that the unit will work on single shift basis for 300 working days in a year.
  • Labour and wages mentioned as per the prescribed minimum wages.
  • Interest rate at @ 13% is considered in the project profile for recurring and non-recurring investment.
  • Margin money will vary from 10- 25% depending upon the location and scheme adopted by the entrepreneur, i.e. self-employment or commercial scheme.
  • The costs of machinery and equipment, raw materials and consumables, other contingent expenses etc., indicated in the profile are based on those prevailing at the time of preparation. Therefore, there are subject to necessary changes from time to time based on the local conditions.
  • The break-even point is calculated on full capacity utilisation basis.
  • The unit requires 1 to 2 months trial production to achieve full capacity.

Implementation Schedule

It is possible to implement this project within 6 months. The following is the time schedule required for implementation:

Sl. No. Activity Period(in months)
1 Project report preparation, acquisition of shed and provisional registration 2
2 Procurement of machinery and equipment 2
3 Installation of machinery and trial production 1
4 Procurement of raw materials and commercial production 1

Technical Aspects

Process of Manufacture

The raw material gypsum is sorted and washed with water for removal of sand and other impurities. The lumps thus obtained are then dried and powdered in pulverizer. The dried gypsum powder is calcined in a rotary drumcalciner using light diesel oil as fuel. The low pressure burner is used for calcination at a temperature of 160ºC to 180ºC. The process of calcination is done over a period of about 2 hours, so that one and half molecules of water is removed to convert the gypsum (CaSo4 2 H2O) into plaster of paris (CaSo4 ½ H2O). After cooling the product (plaster of paris) is further pulverised to a fineness of 150 mesh and packed in air tight polythene lined gunny bags to avoid the plaster of paris from absorption of moisture. For manufacture of surgical grade plaster of paris, a mineral silinite which is considered to be a purer variety of gypsum is used.

Quality Control and Standards

The Bureau of Indian Standards has formulated and published the following specifications for maintaining quality of the product and testing purpose.

IS 2333:1992 Plaster of paris for ceramic industry
IS 1288:1982 Methods of tests for mineral gypsum
IS 4738:1998 Bandage plaster of paris
IS: 2547 (Part 1):1976 Gypsum building plaster including premixed light weight plaster
IS 2547 (Part 2):1976 Gypsum building plaster including premixed light weight plaster

Production Capacity (per annum)

Quantity : 900 MTs.
Value : Rs. 3780000

Motive Power 10 HP.

Pollution Control

The product does not create any noise or water pollution. The air pollution will have to be continuously monitored. Masks can be used by the workers while making powder (grinding).

Energy Conservation

General precautions saving energy particularly, the electricity and fuel are required to be followed by adopting energy conservation techniques not only to conserve the power and fuel but also to save considerable expenditure on their consumption in own interest.

Financial Aspects

A Fixed Capital

(i) Land and Building



Covered area: 2000 sq.ft.@ Rs.500/sq ft with provision for stores, office etc., with equal open area 1000000
Borwell overhead tank 200000
Total 1200000

(ii) Machinery and Equipments


Qty. (Nos.)

Amount (Rs.)

Rotary cylindrical drum calciner capacity 2 MTs (Locally fabricated) 1 No. 70000
Attsition type disc pulveriser ½ MT/hour with motor and other accessories 1 No. 80000
Computer system, office furniture and equipment - 70000
Burner and other equipment - 15000
Installation and electrification charges @ 10% - 23500
Total 258500
(iii) Pre-operative expenses such as project cost, electricity, deposits etc. 15000
Fixed capital  
Land & Building +Machinery + pre-operative expenses 1200000+ 258500 + 15000 = 1473500

Working Capital (Per Month)

(i) Staff and Labour (per month)



Salary month (Rs.)

Total (Rs.)

Manager 1 10000 10000
Computer operator/typist 1 6000 6000
Technologist/Chemist 2 8000 8000
Skilled workers 3 4000 12000
Un-skilled workers 5 3000 15000
Peon/Watchman 2 3000 6000
Total 57000
+ 22% perquisites 12540
Total 69540

(ii) Raw Materials (per month)



Rate (Rs.)

Value (Rs.)

Gypsum 210 MTs 1000/MT 210000
Woven bags polythene cover lined for packing 3000 7/bag 21000
Total 231000

(iii) Utilities (per month)



Power 1600 units @ Rs.5/unit 8000
Water 200
Light diesel oil –1500 litres @ Rs .30/litre 45000
Total 53200

(iv) Other Contingent Expenses (per month)



Postage, stationery and telephone 4000
Repairs and maintenance 10000
Transport charges 10000
Other misc. expenses 2000
Total 26000

(v) Working Capital (per month)



Staff and labour 69540
Raw materials 231000
Utilities 53200
Other contingent expenses 26000
Total 379740

(vi) Working Capital (for 2 months)


Total Capital Investment

Fixed Capital 2673500
Working capital for 2 months 759480
Total 3432980

Financial Analysis

Cost of Production (per annum)

Total recurring expenses 4556880
Depreciation on machinery and equipment @ 10% 15000
Depreciation on building@5% 60000
Depreciation on calciner, computer system and office furniture @ 20% 17000
Interest on total capital investment @ 13% 321555
Total 4970435

Turnover (per annum)

Sale of 1800 MTs . of plaster of paris @ Rs .3000/MT 5400000

Net Profit (per year) (Before Income tax)


Cost of Production


Rs. 5400000 -4970435 429565

Net Profit Ratio


Net profit per year × 100

Turn over per year


429565 x 100



Rate of Return


Net Profit per year × 100

Total capital investment


429565 x 100



Break-even Point

Fixed Cost


Depreciation on machinery and equipment 15000
Depreciation on calciner, computer system and office furniture 17000
Depreciation on building 60000
Interest on total capital investment 321555
40% of salary and wages 333792
40% of other contingent expenses 124800
Total 872147

(ii) Net profit (per year) 429565

Fixed Cost x 100

Fixed cost + Profit


872147 x 100

872147 + 429565



Addresses of Machinery and Equipment Suppliers

  • 1. M/s. Amic Industries
    10, BT Road,
  • M/s. Durgapur Engineering Co. Ltd.
    Marshal House,
    33/1, Netaji Subhas Road,
  • M/s. Wesman Engineers Co. (P) Ltd.
    1/2, Allerby Road,
  • 4. M/s. Continental Thermal Engineers
    806, II Stage, 4th Main,
    A Block, Rajajinagar,

  • Raw Material Suppliers

  • M/s. Mysore Minerals
    39, MG Road,
  • M/s. Shri Venkateswara Products
    Vadakku Venganallur,
    Opp. Raju's College,
    Mudangiar Road,
    Rajapalyam (Tamil Nadu.)
  • M/s. Andhra Pradesh Mining Corporation
    6-3-672, Punjagutta,
  • M/s. Madras Mineral Suppliers
    No.2/10, Toovipuram,
    (Tamil Nadu).
  • M/s. TAMIN
    9, Anderson, Habibulla Avenue,

Addresses of Raw Material Suppliers

  • M/s. Indian Petrochemicals Corpn. Ltd.
    P.O. Petrochemicals,
    Distt. Vadodara
    Gujarat - 391346
  • M/s. Tamilnadu Petro Products Ltd.
    Manali, Tamilnadu
  • M/s. Reliance Industries Ltd.
  • M/s. Dharamsi Morarji Chemical Limited
    317/21, Dr. D. N. Road,
    Fort, Mumbai-1.

For further information please contact

Information Manager
TIMEIS Project