How to Start an Oxygen Cylinder Plant in India?

. 7 min read
How to Start an Oxygen Cylinder Plant in India?

Steps, Tips, Investment & More!

Oxygen has been a lifeline since the advent of humanity. But the global pandemic COVID-19 has made people value it more. Due to the increasing need for oxygen, and various industries donating their oxygen supplies to healthcare departments, there is an expanding need for oxygen cylinder plant business to initiate. But it is not a one-day job. A lot of research requires to get done. Let's understand various aspects of the oxygen cylinder manufacturing plant.

Before going ahead, let's check out the application of oxygen in diversified industries to predict that in what industries you're willing to serve:

1. Application Of Oxygen Across Various Industries

Applications of oxygen to the industrial sectors have become very important to bring out maximum productivity. Oxygen has proved to be useful to people engaged in different kinds of industries. It helps in the production of all kinds of materials using different kinds of technologies.

2. Medical Applications

Medical applications of oxygen have proved to be extremely useful. Oxygen supply has proved to be very effective in the treatment of many medical conditions. Oxygen can eliminate bacteria and viruses and also kills the bacteria present within the human body.

Medical experts suggest using oxygen for better and faster recovery from serious illnesses like cancer, cardiac problems, etc. Moreover, it also helps in curing acute respiratory disorders like asthma.

Live medical screening with medical application on tablet

3. Industrial Applications

Applications of oxygen in industrial sectors include processes as listed below:

  • Refining crude oil and gas by converting it into liquid oxygen.
  • Carbon dioxide scrubbing process that helps in the removal of heavy metals and other contaminants from the atmosphere.
  • Purification of blue liquid oxygen comprising thousands of gases and salts from the atmosphere.
  • Gasification pollutants like hydrocarbons, sulfur compounds, nitrogen compounds, etc., from the atmosphere.
  • Process of oxidation of waste material from smog or coal plants by taking advantage of the reactive oxygen species that remain generated during the burning of fossil fuels and so on.

After understanding the many applications of oxygen, you can choose which segment you would like to prefer. Now let's move forward to understanding the process of an oxygen manufacturing plant in detail:  

How To Start An Oxygen Cylinder Plant In India?

1. Get Yourself Trained Before Coming into the Ground

When setting up your medical oxygen manufacturing plant business, you will also need to invest in the appropriate training. A business course should be taken to educate you on safety measures and strategies.

The best training programs will be provided by various industrial bodies, which will highlight all the necessary details needed to begin the business. One must know all the processes, drawbacks, and risks involved while starting the business.

2 .Keep Track of the Necessary Equipment and Machinery

One of the first requirements of an oxygen manufacturing plant is to collect the equipment and machinery needed for this purpose. This includes big machines like vacuum chambers, solid-state generators, glass chambers, and injector wells.

These pieces of machinery help in the separation of raw materials from these contaminants. Pure oxygen is pumped into the processing lines. Other components are needed for the final production, which includes pumps, pressure regulators, and storage batteries.

Also, if you want to supply the whole system to hospitals directly, you will need other supplements with the oxygen cylinder, which are flow measurement, pressure gauge, oxygen mask, and cannula. Since oxygen has many uses, it must be cleaned up properly.

You need to install air filters at various points in the production line to prevent contaminants such as dirt and dust from being released into the atmosphere. Dirty oxygen can be of no use for any of the industries.

3. Ensure Your Investment Capacity Before Beginning

Another tip to help you get started with this plan is to set aside a budget. If you don't attain a clear idea as to how much money you need, you are at risk of spending more than needed. Setting up the proper budget is one of the most important things you need to do as an oxygen production unit owner.

It can break or make the success of a venture. Generally, manufacturing a 75 litres’ cylinder costs INR 5,500 or near about the same. Oxygen is stored inside the cylinder by compressing, which requires certain real-time expenses as well. This way, by considering all the requirements, you'll have to fix your oxygen manufacturing plant cost to run the business flawlessly.

4. Consider Framing an Effective Marketing Plan Too

Marketing your business is extremely important. You need to consider local media advertising to reach out to your target customers. You should also have flyers including your prices and basic information about your products and services. Advertising is one of the most important tips to start an oxygen manufacturing business.

Without advertising, it is unlikely that you will be able to get enough demand for your product. It turns out to be necessary to build up a good customer base before you can sell your products. A good marketing plan should be added to your oxygen production plant cost to achieve maximum benefits.

 oxygen tanks, nitrogen tanks, industrial tanks at petrochemical plant, oil and gas plant

5. Ensure That The Actual Layout of Your Plant is Followed

After creating a solid business plan, it is time to start thinking about the actual layout of your plant. It is advisable to keep your production and reception areas separated, even if it slightly affects your oxygen cylinder manufacturing plant cost. You should also consider separating equipment such as canning lines, drying lines, and packing lines.

This separation will make it easier to maintain your machinery and reduce downtime due to personal conflicts. A walk-through and maintenance schedule should be developed so that each area of the plant receives adequate attention and care.

The Final Say

To conclude, there are many valuable tips to start oxygen manufacturing plants that any person can implement. They include having a good business plan, separate operations for different aspects of the business, proper scheduling, and using special or hired assistance. If you follow the mentioned tips to start an oxygen manufacturing plant properly, your business will be able to maximise profits and provide quality products to your customers.

Also read:

1) Best Tips for Customer Retention for a Small Business
2) Tips to Understand Your Market while Starting a Small Business
3) Tips for Businesses to Overcome the Covid Blues - Revival Tips for Businesses
4) What are the keys to success when operating a small scale business?

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Q. Is It Profitable to Invest in an Oxygen Cylinder Plant?

Ans. The applications of oxygen are countless, and it is always profitable to invest in such a plant. Also, due to the current situation caused by the pandemic, not only the individuals but also the industries and hospitals are going out of oxygen and are requiring more of it. In the current scenario, it is advisable to opt for a business based on an oxygen manufacturing plant, and it would turn into a profit-generating business in no time.

Q. Which Plant Delivers Oxygen 24X7?

Ans. Peepal Tree is a plant that releases oxygen 24X7. Except for this plant, there's no other tree that releases oxygen at night. It is believed that most of the plants produce oxygen during the daytime, but Peepal Tree is the exception only a few know.

Q. How Many Funds Do You Need to Start an Oxygen Plant?

Ans. An oxygen plant that can deliver 24 cylinders of gas daily costs around INR 33 lacs for setting up. The preparation of such a plant can be done in a couple of weeks only. A hospital full of 240 beds will require approx. 550 LPM oxygen. A hospital of approx. 40 ICU beds will use oxygen of approx. INR 5 lakhs every month.

Q. How Can Oxygen Be Produced Artificially?

Ans. There are ways to create oxygen artificially. Such commercial methods to produce oxygen include separating air through either a cryogenic distillation procedure or a vacuum swing absorption procedure. Argon and Nitrogen are being produced by getting to separate them from the air. Such a method is called electrolysis and creates highly pure oxygen and hydrogen.

Q. How Many Trees Serve in Creating Oxygen for One Person?

Ans. Typically, a human breathes approx. 9.5 tonnes of air throughout the year, but oxygen is only 23% of that air when concluded by mass. We get to extract only a little more than a third of oxygen with every breath. It includes a total of approx. 740KG oxygen in a year roughly turns out to be worth seven to eight trees.