1 Preface
2 Scope and Methodology
2.1 Study Objectives
2.2 Stakeholders
2.3 Research Methodology
3 Executive Summary
3.1 Market Trends
3.2 Raw Material Requirements
3.3 Income Projections
3.4 Expenditure Projections
3.5 Profit Analysis
4 Global Acetone Market
4.1 Market Summary
4.2 Historical and Current Market Trends
4.3 Impact of COVID-19
4.4 Market Breakup by Segment
4.5 Market Breakup by Region
4.6 Price Trends
4.6.1 Raw Material Price Trends
4.6.2 Acetone Price Trends
4.6.3 Product Margins
4.7 Market Outlook
4.8 Competitive Landscape
4.8.1 Market Structure
4.8.2 Key Players
4.8.3 Profiles of Key Players
5 Detailed Process Flow
5.1 Product Summary
5.3 Various Types of Unit Operations Involved
5.4 Quality Assurance Criteria
5.5 Technical Tests
5.6 Mass Balance and Raw Material Requirements
6 Project Details, Requirements and Costs Involved
6.1 Land, Location and Site Development
6.1.1 Overview
6.1.2 Selection Criteria and Significance
6.1.3 Location Analysis
6.1.4 Project Planning and Phasing of Development
6.1.5 Environmental Impact
6.1.6 Land Requirement and Costs
6.2 Plant Layout
6.2.1 Overview
6.2.2 Importance and Essentials
6.2.3 Layout
6.2.4 Factors Influencing Layout
6.3 Plant Machinery
6.3.1 Machinery Requirements
6.3.2 Machinery Costs
6.3.2 Machinery Suppliers (Provided on Request)
6.3.3 Machinery Pictures
6.4 Raw Materials
6.4.1 Raw Material Requirements
6.4.2 Raw Material Details and Procurement
6.4.3 Raw Material Costs
6.4.4 Raw Material Suppliers (Provided on Request)
6.4.5 Raw Material and Final Product Pictures
6.5 Packaging
6.5.1 Packaging Overview
6.5.2 Packaging Requirements
6.5.3 Packaging Material Details and Procurement
6.5.4 Packaging Costs
6.5.5 Packaging Material Suppliers (Provided on Request)
6.6 Transportation
6.6.1 Transportation Overview
6.6.2 Transportation Requirements
6.6.3 Transportation Costs
6.7 Utilities
6.7.1 Energy Requirements and Costs
6.7.2 Water Requirements and Costs
6.7.3 Costs Related to Other Utilities
6.8 Human Resource Requirements and Wages
6.8.1 Total Human Resource Requirement
6.8.2 Salary Costs
6.8.3 Overview of Employee Policies
7 Loans and Financial Assistance
8 Project Economics
8.1 Capital Cost of the Project
8.2 Techno-Economic Parameters
8.3 Income Projections
8.4 Expenditure Projections
8.5 Product Pricing and Margins
8.6 Taxation
8.7 Depreciation
8.8 Financial Analysis
8.8.1 Liquidity Analysis
8.8.2 Profitability Analysis
8.8.2.1 Payback Period
8.8.2.2 Net Present Value
8.8.2.3 Internal Rate of Return
8.8.2.4 Profit and Loss Account
8.8.3 Uncertainty Analysis
8.8.4 Sensitivity Analysis
8.8.5 Economic Analysis
9 Regulatory Procedures and Approval
10 Certification Requirement
11 Key Success and Risk Factors
12 Strategic Recommendations
13 Case Study of a Successful Venture
Capital requirements generally include land acquisition, construction, equipment procurement, installation, pre-operative expenses, and initial working capital. The total amount varies with capacity, technology, and location.
To start an acetone production business, one needs to conduct a market feasibility study, secure required licenses, arrange funding, select suitable land, procure equipment, recruit skilled labor, and establish a supply chain and distribution network.
Acetone production requires raw materials such as benzene and propylene, which are used in the cumene process. Benzene and propylene are derived from petroleum refining and they are first combined to form cumene, which is then oxidized and split to produce acetone and phenol.
An acetone factory typically requires reactors, distillation units, cooling systems, filtration systems, and pumps and compressors. Other essential supporting infrastructure includes storage tanks for raw materials and the final product, ventilation systems, and waste management systems.
The main steps generally include:
Alkylation of benzene with propylene to form cumene
Oxidation of cumene with air to create cumene hydroperoxide
Cleavage using acid to split the hydroperoxide into acetone and phenol
Neutralization of the mixture with a base to stop the reaction
Separation of the crude mixture into acetone and phenol streams
Purification of the acetone stream to achieve high purity
Packaging, storage, and distribution
Usually, the timeline can range from 24 to 36 months to start an acetone production plant, depending on factors like site development, machinery installation, environmental clearances, safety measures, and trial runs.
Challenges may include high capital requirements, securing regulatory approvals, ensuring raw material supply, competition, skilled manpower availability, and managing operational risks.
Typical requirements include business registration, environmental clearances, factory licenses, fire safety certifications, and industry-specific permits. Local/state/national regulations may apply depending on the location.
The top acetone producers are:
BASF SE
INEOS
Mitsui Chemicals Inc.
Moeve
Formosa Chemicals & Fibre Corp.
Profitability depends on several factors including market demand, production efficiency, pricing strategy, raw material cost management, and operational scale. Profit margins usually improve with capacity expansion and increased capacity utilization rates.
Cost components typically include:
Land and Infrastructure
Machinery and Equipment
Building and Civil Construction
Utilities and Installation
Working Capital
Break even in an acetone production business typically range from 5 to 8 years, depending on scale, regulatory compliance costs, raw material pricing, and market demand. Efficient production and export opportunities can help accelerate returns.
Governments may offer incentives such as capital subsidies, tax exemptions, reduced utility tariffs, export benefits, or interest subsidies to promote manufacturing under various national or regional industrial policies.
Financing can be arranged through term loans, government-backed schemes, private equity, venture capital, equipment leasing, or strategic partnerships. Financial viability assessments help identify optimal funding routes.