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 advertising 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.
