How to Start Oxygen Plant Business in India ?


Oxygen is the basic necessity which humans require to live. Plants take in carbon dioxide from the atmosphere and release oxygen, this process as we all know is called as photosynthesis. However, Oxygen is also required as life support for all the patients in the hospitals which helps them to treat and battle against various types of diseases.

Oxygen is also required in various other fields such as manufacturing of steel, plastics, it is a major component in aircraft, submarines, etc. The above requirements cannot be fulfilled through the natural oxygen which is available and hence many businesses move forward with an Oxygen Plant Business.

Usage of Oxygen in Various Industries

It is important to understand the various industries and fields where Oxygen is required, this helps you to derive the demand which oxygen has in the market. Oxygen plant business is generally carried on a medium and large-scale basis, the following are the industries that are your sources to target for a customer base.

 Medical Usage
As you may have already guessed, Oxygen is a necessary supply in hospitals and all medical-related applications. Oxygen helps to battle with various types of bacteria and viruses, giving patients a speedy recovery. Oxygen is also needed in cases of cancer, various cardiac problems, etc. This is one industry where there would be a constant demand for oxygen.

Industrial Usage
We already discussed above that Oxygen is used in various industries and factories for making items and products. The manufacturing of steel, plastic and any such related industries have a huge requirement of Oxygen for facilitating their manufacturing process. Oxygen here is a major component of their process and hence they require it frequently.

Other Industrial Usages
Apart from the major industrial usage, Oxygen is also required in other industries such as refining crude oil and gas into liquid oxygen. Another is the scrubbing of carbon dioxide and removal from heavy metals in the atmosphere. Various other applications such as oxidation of waste material from coal plants by taking advantage of the reactive oxygen species that are generated during the burning of fossil fuels.

Equipment & Machinery Required

You need to ensure the proper stock of equipment and the right type of machinery for your Oxygen Plant business. This type of business requires heavy machinery and the right equipment for the process to go smoothly and to have an effective production cost. The various equipment required for starting Oxygen Plant Business is mentioned as follows.

  •  Various machinery which is required in the manufacturing process are glass chambers, injector wells, solid-state generators, huge vacuum chambers, and so on. You also require other machinery or equipment such as pumps, storage batteries, pressure regulators, etc.

  • The various equipment which one may require, especially if you are dealing in the segment of medical applications is oxygen masks, cannula, pressure gauge, flowmeter, flow measurement, etc. You would also require various air filters and other elements which would be necessary to keep the system together.

Methods for Industrial Generation of Pure Oxygen

There are many methods through which you can generate oxygen. It depends on the scale of your business and the type of machinery that you use. Below mentioned are the two different types of methods for the industrial generation of Oxygen.

Pressure Swing Absorption Method
Pressure Swing Absorption or more commonly called as PSA method includes the process of separating nitrogen and the other necessary gases from the mixture of all the gases under high pressure. The result of this process leads to the obtaining of pure oxygen. This is one of the most commonly used methods by many businesses across the world and is generally adopted by businesses that run on a medium-scale basis.

Fractional Distillation Method
As we discussed above that there are various different ways of procuring pure oxygen depending on the scale of a business. The most famous among all the methods is the Fractional Distillation method. The reason behind this method being widely adopted is because of its higher percentage of obtaining the purest oxygen. This method includes the removal of dust from the air and then removing carbon dioxide and moisture by compressing the air and separating the same by purifying. The final stage involves liquifying the air by passing the same through various heat exchangers to separate oxygen and nitrogen. This type of method is only adopted by businesses that operate on a large-scale basis.

Crucial Points to Note

Certain points are required to be noted before starting your Oxygen plant business. These facts are related to the industry, the demand, the various segments, and so on. It would help you to avoid a few of the silly mistakes which business owners generally make.

  • You need to select the right segment in which you would be supplying or dealing with Oxygen. As a new player in the game, you should avoid working in two different segments together as it may incur you a loss.

  • Before purchasing the necessary machinery and equipment for your business it is advisable to connect or take the advice of an expert who would guide you to purchase the right equipment and help you save capital.

  • If you are dealing in medical applications or hospitals, it is crucial that you maintain regular purity checks as the same oxygen cylinders would be used to treat patients in the hospitals.

Investment Required

The investment required is a major concern for every individual who is looking to start his/her own Oxygen Plant Business. As you may be aware, it requires huge capital for acquiring the machinery, selecting a manufacturing unit, having all the equipment, paying the workers, and so on. On average, you can expect the investment amount to range between 5 to 10 Crores. The investment amount depends on the type of method you choose for the manufacturing process of Pure Oxygen and the type of machinery that you buy for your manufacturing unit.

Sign Up For Our Newsletter


Disclaimer :The information contained in this Article is for general information purposes only. The information is provided by StartupYo (SAB Weblabs Pvt.Ltd). While we endeavour to keep the information up to date and truest to the best of our knowledge, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.

Share this post: