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Oxygen is vital element without which life on the planet Earth is unthinkable. Even though its centrality to the sustenance of life on the planet, we did not realize its value. The advent of global pandemic COVID-19 has made us realize the importance of oxygen. During the 1st and 2nd wave of the spread of viral infections, India faced the challenge of shortage of oxygen. In order to ensure there no such shortage in the future, the government of India announced a slew of measures encouraging businesses to set up oxygen cylinder filling plants in India.

When the 2nd wave was peaking, the government earmarked a plan to set up PSA oxygen plants in every district of the country. No denying it is a step in the right direction but there is a huge demand which requires significant participation from entrepreneurs and businesses. As more people enter oxygen cylinder filling plant the supply of oxygen will start becoming better giving the country a better chance to overcome the scarcity of oxygen.   Considering the wide-spread use of oxygen for medical and industrial applications, it is the best time to enter the business.

Setting up oxygen cylinder plant business

As mentioned earlier, oxygen cylinder business is profitable but requires specialized know-how and significant capital. Step-by-step guidelines are described below for setting up the business.

Get technical knowledge

Before entering medical oxygen manufacturing plant business, it is highly advised that you should receive specialized training of the working of the plant machinery. This will help you to run your business efficiently. Having technical knowledge equips you with understanding of the machinery and their proper upkeep. There are numerous industrial bodies imparting such training.

Oxygen is generated either through cryogenic distillation or pressure swing adsorption (PSA), which are two of the most used processes. If you are planning to install PSA oxygen plant you must be familiar with its working, drawbacks, maintenance, and life-cycle.  In case of installation of cryogenic O2 plant, being acquainted with working of the cryogenic process is highly recommended.

Find a reputed oxygen plant manufacturer 

Just as important it is important to acquire some measure of technical expertise in the machinery and equipment used in the manufacturing of oxygen plant, it is equally important that you find a reputed oxygen plant manufacturer for purchasing. Ensure that manufacturer is known for making products in compliance with globally accepted standards.

Determine investment capacity

Starting oxygen medical cylinder business requires significant investment since the very nature of the business is capital-intensive. How much investment is required would depend on the capacity of the plant. So the size of the O2 plant will determine the size of your investment in medical O2 business.  Arranging the required capital including installation and operational cost of O2 plant for a year is recommended.

Make a scalable marketing plan

After installation of the plant, reaching the customers is the most important part of the business. It will be executed with the use of traditional and online media. Advertising your services as a supplier of oxygen cylinders must be done in the local media of the area. Online media campaigns should continue to work uninterrupted. Expenses incurring in advertizing must added to the oxygen cylinder filling plant cost for efficient management.

Ensure supply of spare parts for 5 years

At the time placing the order with your oxygen plant manufacturer, securing the supply of spare parts for 5 years is recommended for uninterrupted operations of the business. If this is not done your O2 is likely to remain shut till the spare parts reach your site and get replaced. Being proactive helps you in increasing efficiency and cutting losses.