How to Start an Oxygen Cylinder Plant Business In India? (Complete Guide)

Damini Bhandary Damini Bhandary
Sep 17, 2021 5 min read
How to Start an Oxygen Cylinder Plant Business In India? (Complete Guide)

The Covid-19 pandemic taught us the importance of oxygen in our life. People were yearning for the most underrated thing, especially during the second wave of the pandemic in India. Somehow that underestimation resulted in hundreds of deaths in the country. The devastating display of what shortage of oxygen can do was seen all over the media during the second wave and honestly, it was heart-wrenching.

Any kind of beginning of a business depends on the demand or potential of that thing in the market. Saving lives is a noble deed, so what’s better than starting a business, which can saves lives, literally. The Covid-19 creates a huge demand for oxygen cylinders in the market, mostly in hospitals. So, starting an oxygen cylinder plant in a country that is in need of it, seems to be a good idea.

Although to follow up on this plan is a lot of work. So, let’s dive into the matter and find out how to start an Oxygen cylinder plant business in India.

β€œBusiness is all about solving people's problems - at a profit.”

― Paul Marsden

Things that are needed for an Oxygen Cylinder Plant
Equipment's Needed for an Oxygen Cylinder Plant
Things To Keep In Mind before starting an Oxygen Cylinder Plant
Transportation of Oxygen Cylinder Plant
License Needed For Oxygen Cylinder Plant Business
How to Market your Oxygen Cylinder Plant Business
FAQ

Things that are needed for an Oxygen Cylinder Plant

The Covid-19 pandemic may seem the reason but other than that there are other health-related issues that people suffer from, which can only be solved by oxygen cylinders. It can actually bring a β€˜breath’ of relief, so the need for it has become more significant now. Following things are required for the business. First and foremost, a proper business plan is required to start with the business. The following things are what is needed.

Proper Training

Before indulging in this business, one needs to learn a lot of things, which include safety procedures. A proper training program will help in understanding the key details, that’ll be an asset in the future. It includes the positives, negatives and the risk that involved in this business.

Investment

Investment is one of the most if not the most important things that is needed for any kind of business. If someone wants to start an oxygen plant, at least β‚Ή30 to β‚Ή35 Lakhs is needed for the setup of the plant, so that it can deliver up to 24 cylinders every day. A proper location is also needed to construct the plant. It is not a small business, so naturally, a heavy amount is needed from the very first.

Manufacturing

To get a general idea, the manufacturer of a cylinder of oxygen should be contacted. They will provide the proper instruction from A to Z. i.e. from the manufacturing of oxygen in the plant to the filling of the cylinder with oxygen.


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Equipment's Needed for an Oxygen Cylinder Plant

Some extra equipment is needed for the entire setup of the plant. These equipment's will help in getting pure oxygen instead of harmful materials, they are:

  • PLC Control Panel
  • Vacuum Chambers
  • Glass Chambers
  • Injector wells
  • Solid State generators

Apart from all these, some other machinery are also needed in the cylinders, they are:

  • Oxygen Mask
  • Cannula
  • Pressure Gauge
  • Flowmeter
  • Other things to fit the system altogether

Proper installation of every piece of equipment is necessary for the entire plant to avoid the oxygen from getting polluted.


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Many Logistic companies and Startups have came forward to deliver oxygen cylinders as there is an oxygen crisis going in the country.

Things To Keep In Mind before starting an Oxygen Cylinder Plant

Just because someone wants to open an oxygen cylinder plant, they can, it’s not that simple. Some additional rules are necessary to be followed:

1. All rules and regulations are to be maintained while dealing with oxygen cylinders and their supply.

2. The oxygen in the gas cylinder has to be pure.

3. It must not contain any toxins or other chemical elements that can be harmful.

4. The oxygen has to be clean and pollution-free.

Transportation of Oxygen Cylinder Plant

The supply of oxygen will be mainly for medical uses and industry purposes. So while transferring them to hospitals or any medical center, special attention needs to be given. Oxygen in the cylinder is kept at high pressure, so the vehicle that’ll be used to transport the cylinders must be careful enough to avoid cylinders colliding with each other. If proper steps are not taken, it can cause an explosion. You should also review the Department of Occupational Safety and Health Administration and Transport Standards before transporting oxygen cylinders.

License Needed For Oxygen Cylinder Plant Business

As it is related to medical business, it surely needs some special permission:

  • Permission from the local board of the location the business will be set up is needed.
  • Incorporation Laws of the state must be scrutinized to know the rules of starting a legal and proper business. Also you need to register your business before you start your business.

How to Market your Oxygen Cylinder Plant Business

In any kind of business, marketing is important. Without marketing, a business can never flourish. Although it is a time where oxygen cylinder has huge demand, still marketing is important, to achieve a great number of profits. Some of the methods for advertising are:

  • Handing out flyers containing information about your oxygen plant to the people.
  • Contacting local media to get their presence known among the targeted customers.
  • Making the business presence felt on social media by posting about itself.

Conclusion

To start an oxygen cylinder manufacturing plant in recent times, can be beneficial as the second wave of the Covid-19 leads to a shortage of oxygen all over the country. It is a good time to provide quality products to the people in need. Β A business that can save people while gaining profits for itself is surely an interesting and better option than just sitting and watching people suffer. One just needs to take a brave step and follow all the rules that can lead to a safe start of a business. It will do the noble job of saving lives and also will help in earning millions.

FAQ

Is Investing on an Oxygen Cylinder Plant profitable in India?

Yes, Investing in an oxygen cylinder plant can be quite profitable as the demand for oxygen cylinders is not ending soon.

What is the Cost of an Oxygen Cylinder?

The minimum cost of a 10.2 Litre of oxygen cylinder is β‚Ή4500 and the maximum is β‚Ή6500.

Which Company makes Oxygen Cylinders In India?

National Oxygen Limited, Axcel Gases, and Swastik Synergy Engineering Private Limited are some of the top oxygen manufacturers in India.

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