In 1868, in the Irkutsk province, near the river Khaitynka, two local peasants, brothers Daniil and Filipp Perevalov, discovered deposits of kaolin clay. Understanding its value for pottery, they quickly realized that they could make a good profit from selling this material. An Irkutsk merchant began purchasing clay from them, but despite its high quality, his pottery turned out coarse. Eventually, after going bankrupt, he transferred his factory to the Perevalovs as payment for his debt.

The brothers modernized the production, but they lacked experienced specialists. So they began to involve convicts in the work. For example, one of them could determine the quality of the clay by eye, while another accurately assessed the degree of firing by the smoke from the kiln. Over time, their cups, soup bowls, plates, and other products became popular in local markets due to their high quality and beautiful design. The pottery was hand-painted and adorned with the stamp 'Perevalov Factory in Irkutsk,' depicting a nest with a bird among the branches of a flowering tree, framed by elegant golden lines.

At that time, the best porcelain was considered to be the products of the Moscow 'Partnership for the Production of Porcelain and Faience Goods Kuznetsov,' which was a Supplier to the Court of His Imperial Majesty. However, Siberians often preferred products from Irkutsk. The descendants of the Perevalovs continued the business, elevating the factory to a new level. Siberian pottery began to receive awards at various exhibitions and competitions.

Nevertheless, there were tragedies. On August 23, 1907, Ivan Perevalov was returning from Irkutsk with a large sum of money and a bottle of liquid gold for decorating porcelain. Knowing this, someone attacked him at night. Ivan sustained serious injuries and died the next day. His son showed no interest in the factory's affairs and quickly squandered his father's inheritance.