written by Khatabook | February 15, 2022

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How to Start an Oxygen Cylinder Plant in India?

The importance of oxygen in human respiration is critical as humans and many other organisms need oxygen to survive. Medical oxygen is also used in hospitals to help patients with life support and treat various diseases. Oxygen is widely employed in manufacturing steel, plastics, and textiles, among other things. Oxygen is a critical component in submarines, aeroplanes, and spacecraft, among other things. However, these industrial oxygen requirements cannot be satisfied by oxygen produced naturally by plants. To suit industrial needs, oxygen must be created artificially on a huge scale.

Taking into account the existing demand for the product in the market is quite crucial. An oxygen plant is a piece of industrial machinery that produces pure oxygen for industrial and pharmaceutical uses. Furthermore, due to the country's rapid and severe outbreak of the COVID-19 pandemic, there is a high demand for oxygen tanks in hospitals and among the general public. As a result, starting an oxygen plant business is one of the most profitable business ideas available today.

Did you know? French chemist Antoine Laurent Lavoisier was the first to use the name ‘oxygen’ in 1777. The term oxygen comes from the Greek word ‘oxygenes,’ meaning acid producer.

Business Plan for an Oxygen Plant

Having an oxygen plant business plan will assist you in the following areas when establishing a business plant:

  • The most basic requirement for creating a firm plant is a well-crafted project proposal.
  • It should include information about your business's location and information about the investment.

How to Start Oxygen Plant Business in India? 

Oxygen is also required in a number of other industries apart from the health sector, including the production of steel and polymers, as well as being a critical component in aircraft and submarines. Because current needs cannot be met with currently available natural oxygen, various companies have moved to the oxygen plant business.

The oxygen gas in the cylinder is 100% pure. If you want to create an oxygen plant business, you should know that neither the oxygen plant nor the oxygen cylinder includes any chemical constituents or other poisons.

To be entirely pollution-free, the oxygen must be pure. Maintaining a purity check is essential for patients and hospitals to utilise these oxygen cylinders. You must also review all oxygen supply and cylinder handling regulations.

Before getting into this profession, one must first master several things, including safety procedures. A good training program will aid in comprehending the important aspects, which will be useful in the future. It comprises the advantages, disadvantages, and risks associated with this business.

Also Read: Start A Medical Lab Business With Minimum Capital

What Does the Oxygen Manufacturing Plant Cost in India? 

Investment is among the most critical, if not the most crucial, aspects of any firm. If someone wants to build an oxygen factory, they will require at least ₹35 to ₹50 lakh to put it up to deliver up to 24 cylinders each day. To build the plant, you'll need a suitable location. Because this is not a tiny business, a large sum of money is required right away. A minimum investment of ₹35-50 lakh is required.

Licenses and Procedures

Let's look at the land requirements for starting and operating this firm. 

 The licence must be obtained under the 1940 Drugs and Cosmetics Act, which governs the sale and production of oxygen. 

The least amount of land needed to run this business might be as little as 1000 square feet, and the greatest amount of property needed could be as much as 2 acres. It fluctuates depending on how much money you put into the oxygen plant.

You need the factory license permission from chief inspection of factories (state government)

  • A trade license from the local authority
  • Consent from the state pollution control board
  • Village NOC from GAON Panchayat
  • Power load permission to Power Distribution Company
  • Aadhar Card

To start and run this business, you'll need the following:

  • The cost of electricity.
  • Availability of water.
  • The cost of packaging materials.
  • Cost of a cylinder
  • Salary and costs of employees
  • Costs of repairs and upkeep.

Expenses for management:

  • You'll need to spend money on the sales team, as well as on marketing and transportation.
  • You'll need to hire a recruiter and an accountant for this firm.
  • Miscellaneous expenditures

Here are the two methods for producing oxygen in the industrial sector:

  •  PSA (Pressure Swing Adsorption) Method

 The PSA method of oxygen generation includes extracting pure oxygen from a mixture of gases by separating nitrogen and other gases under high pressure. This approach necessitates a set of gear with two different vessels to separate the gases. It is one of the most widely utilised industrial oxygen generating technologies worldwide, and small businesses are the primary users of this strategy.

  • Fractional Distillation Method

It is another common method of producing oxygen in industry, and it is more efficient and produces high purity oxygen than the PSA approach. The dust is initially cleaned from the air in this process, and the air is compressed after the dust is removed and then cleansed by separating gases such as carbon dioxide and moisture. The air is then liquefied and separated into oxygen and nitrogen using heat exchangers.

Finally, oxygen is collec  ted and refined to industrial standard purity through the distillation process. Big-scale companies generally employ this approach to manufacture high-quality oxygen in large numbers.

Usage of Oxygen in Various Industries

It is important to understand the many businesses and fields in which oxygen is necessary; this will allow you to calculate the market demand for oxygen. The oxygen plant industry is often conducted on a large and medium scale, and the industries listed below are potential customer sources.

  • Medical Usage

Oxygen is a crucial supply in health facilities and all pharmaceutical industries, as you may have anticipated. Oxygen aids in the fight against bacteria and viruses (such as Coronavirus), allowing patients to recover quickly. Oxygen is also required to treat cancer, heart disease, and other medical conditions. This is one industry where oxygen would be in high demand all of the time.

  • Industrial Usage  

Oxygen is employed in various sectors and factories to create commodities and products. Steel, plastic, and other related sectors require a large amount of oxygen to facilitate their manufacturing processes.

  • Other Industrial Applications

Oxygen is required in different industries, such as refining crude oil and gas into liquid oxygen and its primary industrial use. Another is the removal of heavy metals and carbon dioxide from the atmosphere. Other applications include the oxidation of waste products from coal power stations by utilising reactive oxygen species produced during the combustion of fossil fuels.

Equipment you Need to Start Oxygen Plant Business in India

For an Oxygen Plant business, you must have a sufficient supply of equipment and the appropriate machinery. For the process to run smoothly and with an effective production cost, this business requires heavy machinery and the appropriate equipment. Following are the various equipment needed to start an oxygen plant business.

  • Glass chambers, injector wells, solid-state generators, enormous vacuum chambers, and other apparatus are all needed in the manufacturing process. Pumps, battery systems, pressure regulators, and other apparatus or equipment are also required.
  • Oxygen masks, cannulas, pressure gauges, flow meters, flow measurement, and other equipment may be required, particularly if you are working in the medical field. You'll also need a variety of air filters and other components to keep the system running smoothly.

Oxygen Cylinder Transportation

It is vital to assure safety in a service like the Oxygen Plant Business, and it is also appropriate for the medicinal usage of oxygen cylinders. As a result, it is critical to pay careful attention to its transit.

Furthermore, the pressure in the oxygen cylinder is quite high, resulting in a tank pressure of up to 3 thousand PSI for personal or transportable use. As a result, it necessitates extra attention and adherence to a safety policy when handling it.

Furthermore, when transporting oxygen cylinders, you must guarantee that your truck is in safe working order to avoid the oxygen cylinders colliding.

Also Read: How to easily set up a Medical Store? Guide to start Pharma Shop

Conclusion

The recent pandemic of Covid-19, which had resulted in a nationwide shortage of oxygen in 2020, may make it advantageous to launch an oxygen cylinder manufacturing plant. It is an incredible deed to help those in need with life-saving necessities. Any form of business start-up is dependent on the demand for the product in the market. Saving a life is a noble act, so what could be better than founding a business that can save lives? The Covid-19 generates significant demand for oxygen cylinders in the marketplace, mostly in hospitals. As a result, establishing an oxygen cylinder facility in a country in need of it is a sensible idea.

It is undeniably useful to engage in a commercial enterprise that benefits the public health system and can save lives. All that is required is to take a brave step and follow all of the principles that can lead to a successful business start-up. We hope you were able to understand how to start the oxygen cylinder business in India.

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FAQs

Q: How much space is necessary for a medical oxygen generator to be installed?

Ans:

According to manufacturer rules, safety distances must be maintained when storing cylinders or liquid tanks. The oxygen generator has no such restrictions and can be positioned in the corridor, on the backside of the hospital, or on the terrace.

Q: How long will it take me to recover my investment costs?

Ans:

You can recover your investment costs in less than two years, which is a compelling financial proposition for any institution. You not only save money on oxygen, but you also save money on the manpower required to handle the cylinders.

Q: What is the oxygen cylinder plant setup cost in India?

Ans:

Setting up an oxygen plant that can supply 24 cylinders of gas each day costs roughly ₹ 35 lacs. The preparation of such a plant can be completed in just a few weeks. A hospital with 240 beds will need about 550 LPM of oxygen. Every month, a hospital with approximately 40 ICU beds will require approximately ₹ 5 lakhs in oxygen.

Q: Is Investing in an Oxygen Cylinder Plant Profitable?

Ans:

The uses for oxygen are many, and it is always a good idea to invest in a plant like this. Furthermore, due to the pandemic's current scenario, individuals, companies, and hospitals are running out of oxygen and requiring more. It is advisable to choose a firm based on an oxygen manufacturing factory in the current environment, quickly turning into a profitable venture.

Q: How Can Oxygen Be Manufactured in a Lab?

Ans:

There are two methods for artificially producing oxygen. Separating air using either a cryogenic distillation operation or a vacuum swing absorbance procedure are two commercial methods for producing oxygen. Separating argon and nitrogen from the air results in their production. The process is known as electrolysis because it produces extremely clean oxygen and hydrogen.

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The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.