Oxygen Plant Business In India Business Cost, Investment, Profit, Requirements | SkillsAndTech

Oxygen Plant Business In India Business Cost, Investment, Profit, Requirements | SkillsAndTech

When we decide to get into the business industry, our basic understanding behind choosing any business idea should depend on its market potential. In addition to this, considering the current demand for the product in the existing market is also relatively extremely important. Oxygen plant is industrial equipment that is used for generating pure oxygen for industrial and medical purposes. Additionally, due to the sudden and extreme outburst of the COVID-19 pandemic in the country, there is a huge demand for oxygen cylinders in various hospitals and also amongst the citizens. Therefore, choosing to do the Oxygen Plant Business is one of the highest profit-generating business ideas presently. Furthermore, an oxygen business cannot be set up, run smoothly, and established successfully without having a well-crafted oxygen plant business plan.

Hence, today in this blog, not only will we learn about setting up an Oxygen Plant Business, but we will also study the role and importance of the Oxygen Plant Business Plan.


  • All the budding entrepreneurs and new businesspersons who are looking forward to start the oxygen plant business must understand that this business requires a good amount of investment.
  • In addition to this, using an Oxygen Plant Business Plan will surely help you in achieving success.
  • Moreover, with the help of the oxygen plant business plan you will be able to increase the success ratio of your business.
  • Along with this, setting up the oxygen plant business on the basis of the plan will also help in a lot more things that we will learn further in the blog.   

In the News

  • DRDO (Expanded as Defence Research and Development Organization) is providing innovative, homegrown technological assistance for the establishment of 500 medical oxygen plants in order to protect the lives of thousands of Corona patients who are losing their lives due to shortage of oxygen as well as storage cylinders.
  • These oxygen plants will be established under PM CARES Fund. Production of 1,000 litres of oxygen will take place per minute by all the oxygen plants.
  • In collaboration with IIT, Tirupati, an alumni team of the Indian School of Business, introduced an indigenous pressure swing adsorption oxygen plant in Hyderabad.

Why Choose Oxygen Plant Business Plan??

Given hereinafter are a few points that will help you in understanding the importance of the Oxygen Plant Business Plan-

  • In the present time, people are facing numerous health issues and other related problems due to the life-threatening effects of the novel coronavirus. 
  • Also, it is seen around that every hospital, every clinic, and every ill or COVID patient is asking for the oxygen cylinder.
  • Since the COVID-19 is a respiratory syndrome, it has been attacking people and causing breathing problems. 
  • Furthermore, the second wave of the COVID-19 pandemic is making every person ill, and this is the biggest reason for the massive demand for Oxygen Cylinders.
  • Additionally, there is a huge shortage of oxygen cylinders in India everywhere, including hospitals. 
  • But you can still save the lives of numerous people by investing in the oxygen plant business.
  • Besides, the oxygen plant business plan will also help in making huge profits out of the business idea.

How is Oxygen Plant Business Successful??

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  • To maintain life on earth, Oxygen is a biological requirement for human beings. Additionally, surviving without Oxygen is not possible. 
  • Furthermore, there are several gases in the atmosphere, out of which we absorb Oxygen. 
  • But, in the present and life-threatening situation caused due to the drastic outbreak of the novel coronavirus, any person who has asthma, diabetes, or any other breathing issues is facing a lot of problems. 
  • Therefore, doctors are using oxygen cylinders for all the suffering patients.
  • This is the biggest reason behind the extensive and every time need for Oxygen Cylinders amongst people as well as hospitals. 
  • In addition to this, due to the daily rise in the COVID cases, there is a big shortage of oxygen cylinders and numerous people and hospitals are striving to get Oxygen. 
  • Hence, if you choose to start Oxygen Plant Business in such a critical situation, you can make a good profit out of it. 
  • Moreover, if you create a well-structured Oxygen Plant Business Plan and follow it while setting up your business, you would be able to implement every strategy successfully.

Risks Associated with Medical Oxygen Gas Cylinder Business

Due to the existing high pressure in the medical oxygen gas cylinder business, there is a major risk concerning the security of its transport. It must work by following a set of distinct norms. Thus, there is a possibility of risk involved in it.

In this manner, you are likely to reap a chance to make millions by commencing this form of business venture, but at the same time, you need to be cautious in this business and make wise moves. You must prepare a strategy concerning the risks associated with your business in the oxygen plant business plan.

Oxygen Plant Business Plan

While setting up a business plant, having an oxygen plant business plan helps you in the following: –

1- The basic requirement for setting up a business plant is to have a well-crafted business plan.

2- Additionally, the oxygen plant business plan should also consist of the ideas that you want to implement.

3- It should have details of the location for your business along with the investment details.

Manufacturing Unit of Oxygen Plant

1- Intending to set up the Oxygen Plant to manufacture the Oxygen Cylinders, you are required to contact its manufacturer.

2- The manufactures of the oxygen cylinders will help you with all the information about the process of oxygen manufacturing and also the steps of cylinder filling.

3- Once you receive all this information, you can start your Oxygen Plant Business easily.

Oxygen Plant Business Plan: Business Equipment

  • While you plan to set up the Oxygen Plant Business, you also need to understand the logistics of the oxygen plant business. 
  • Moreover, you should also be aware of the machinery and equipment that is used in setting up the Oxygen Plant. 
  • In addition to this, there are several oxygen concentrations available in the market. 
  • Furthermore, the Oxygen Plant Business also requires some additional equipment.

How to start the Oxygen Plant Business??

1- The oxygen gas that is filled in the oxygen cylinder is totally pure. In addition to this, the medical-grade oxygen accumulates above 85% and below a certain percentage of impurities.

2- Therefore, if you are planning to start the Oxygen Plant Business, then you must understand that the oxygen plant and the oxygen cylinder does not contain any chemical elements or other toxins.

3- The oxygen is needed to be completely clean from pollution.

4- Maintaining a purity check is a necessity as these oxygen cylinders will be used by patients and hospitals.

5- Additionally, you are also required to review all the rules regarding oxygen supply and cylinder handling.

Crucial Aspects concerning Oxygen Plant Business Plan

  • It’s an undeniable fact thatthe oxygen businesswill turn out to be highly fruitful if you are properly sticking to the basics of the market.
  • Firstly, your oxygen plant business plan should hold a feasibility study of the area in which you want to establish your oxygen business.
  • Moreover, it is also crucial to understand government regulations, the investment required to establish oxygen plant, ongoing trends in the market, etc.

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  • After becoming familiar with the current market condition and government regulations, you will easily commence your plant business.
  • Once you have prepared your oxygen plant business plan for the oxygen business, it is time to go for the implementation part.
  • Now you need to liaise with major hospitals in your region to render them oxygen cylinders encompassing medical oxygen.
  • The hospitals are likely to be your constant clients if you can convince them to take oxygen supplies from you.

Transportation of Oxygen Cylinder

1- In a business like the Oxygen Plant Business, ensuring safety is extremely important. Additionally, it is also good for the medical use of oxygen cylinders.

2- Hence, giving special attention to its transportation is highly important.

3- Along with this, the pressure in the oxygen cylinder is very high, due to which the pressure of the tank can be up to 3 thousand PSI for personal or transportable use. 

4- Hence, it requires special attention and also a safety protocol is to be followed while handling it.

5- Furthermore, while planning to transport the oxygen cylinders, you are required to ensure that your truck works safely to prevent the oxygen cylinders from colliding.

Additional Information

For transporting the oxygen cylinders, it is an essential requirement to review the Department of Occupational Safety and Health Administration and Transport Standards. In addition to this, you are also needed to ensure all the qualifications.

Moreover, not only will this help you with the transportation of the oxygen cylinders, but it will also help you with all the standards that you have to meet for storage and production.

Oxygen Plant Business Plan: Licenses and Registration

To set up this business and run it smoothly, you are required to obtain the following:

Registration of Firm:

You may start the small to medium Business either a Proprietorship or Partnership Firm.

If you are starting this Business as One Person Company, then you have to register your firm as a proprietorship.

For Partnership operation, you have to register as a limited liability partnership (LLP) or Pvt. Ltd. Company with
Registrar of Companies (ROC).

GST Registration:

it is mandatory to get the GST number to run the business; you need to apply for the GST registration.

Trade License:

obtain trade license from local authorities

MSME/SSI Registration:

this MSME/SSI Registration will help you to get schemes and facility for the business offers by the state government

BIS certification:

BIS has mentioned the specific quality standard for Business. ISI specification for the

Trade Mark:

you can secure your brand with trademark registration

IEC code: 


IEC code is essential for the export of the product


state insurance which is an insurance scheme for workers.

ESI Registration:

Employees provident fund is compulsory for the business where more than 20 employees are working.

To comply with the above processes and registration, one might need any legal expert who would help in absolute legal compliance to meet industrial standards. 

Investment in this Business

  • The Oxygen Plant Business is a kind of big plant. To start with this business, you need a lot of capital. Additionally, you are required to invest a minimum of ₹10 to ₹20 lakhs. 
  • But there can be a need for more investment, and to meet that, you can apply for business loans.

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Due to the unforeseen outbreak of the deadly COVID-19 pandemic, the demand for oxygen has increased extensively among the people and hospitals. Therefore, setting up the Oxygen Plant Business will also help you achieve success. It will also help you serve lakhs of people who are suffering due to scarcity of oxygen. In addition to this, to achieve success in any business, it is extremely important to have a business plan. The Oxygen Plant Business Plan will help you in studying all the aspects of the business in detail. Moreover, the market for selling oxygen cylinders is huge in the present scenario. Except for this, the major reason behind the massive success and great profit in the Oxygen Plant Business is the huge need for it.

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