[2023] How To Start Oxygen Cylinder Business In India

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All living things on Earth require oxygen to survive, so if someone has difficulty breathing due to a disease, they are admitted to the hospital. Doctors swiftly administer oxygen to the patients in such a case. Because of this, there is a significant requirement for oxygen gas cylinders in hospitals and medical facilities.

Additionally, because corona patients have the most severe breathing issues as they visit the hospital and need oxygen, the demand for these cylinders in the nation has surged significantly as a result of the current corona pandemic. Government initiatives to enhance production have led to an increase in demand.

The Government of India was importing oxygen from abroad to save the people. Seeing this situation, it seems that the people of India can get some relief from getting oxygen.

How to start oxygen cylinder business in India

Many hospitals and businesses ask us how to start an oxygen plant as well as what an oxygen gas plant project report or project profile is. O2 plants are pieces of industrial equipment that are increasingly employed in both businesses and hospitals. Without a question, equipment has evolved into a very valuable tool for supporting different manufacturing processes.

The medical oxygen cylinder is filled with 100 percent pure oxygen gas. More than 85% and less than a specific amount of contaminants are accumulated in medical oxygen. Remember that it must be free of any harmful substances or other chemical elements and clean of all pollution to a certain degree. It should not cause any issues for any of the patients. To ensure you are adhering to all requirements, you must evaluate all rules pertaining to oxygen gas supply and cylinder management.

Since the coronavirus outbreak, hospitals and healthcare institutions all around the country have observed a significant increase in demand for medical oxygen and a serious scarcity of it, particularly during the second wave in 2021. Due to the shortage, hospitals are becoming more interested in purchasing on-site medical oxygen generators to ensure they have a constant supply of low-cost, medical-grade oxygen gas.

Because a patient requires completely pure oxygen and atmospheric oxygen contains many hazardous components, medical oxygen gas is collected within the cylinder plant by removing oxygen from the atmosphere and packed the cylinder.

Oxygen Cylinder Business Requirements

Need depends on size of business to start oxygen cylinder business. The items listed below can help an oxygen plant business get off the ground.

  • investment
  • building
  • water and electricity
  • Vehicle
  • Labour
  • machines
  • GST Number

Government Approval

Given that there is a shortage of oxygen cylinders, you must apply for government approval before starting an oxygen cylinder business or any other medical venture. The government will assist you in this endeavour.

Investment for Oxygen Cylinder Business

Investment in this business depends on the business and the land because if you start a large business, you must invest more, whereas if you start a small business, less investment is required. Additionally, because there are numerous machine types inside and various machine rates, investment also depends on the individual. 

After that, the machine must be purchased in order to launch the oxygen cylinder business successfully. After constructing a structure in which to install the equipment, separate investments must be made for a power supply, a water facility, and a vehicle.

  • Building = about Rs. 4 to Rs. 5 lakh
  • 10 to 15 lakhs Automatic PSA Natural Oxygen Gas Plant
  • Equipment: around 1.5 to 2 lakh rupees

Total Investment: 25 to 30 lakhs rupees (if the land is owned).

Space Required 

There won’t be a need for extra space to install the generator if a hospital is already employing cylinders. Due to the MVS generators’ small size and skid-mounted design, no additional room is needed. However, hospitals can avoid paying for the extra staff needed to handle cylinders.

  1. 1000 to 1200 square feet of plant space
  2. Go down: between 500 and 700 square feet
  3. Total Square Footage: 1500 to 1700 Square Feet

Oxygen Cylinder Business Equipment

New clients are unaware of the distinctions between PSA plants and cryogenic plants.  You have two options for beginning oxygen production: PSA or cryogenic distillation. The former is more expensive but more effective. The latter is also less effective but less expensive. 

Other Equipments are

  • Gauge Flow Metre 
  • Oxygen Mask Cannula

Is loan Required to start oxygen cylinder business in India 

 A loan is not necessary to start an oxygen cylinder business on a small scale, but if you operate it on a large scale, you can get a loan from the Government of India or a “Mudra Loan”.

Documents for Medical Oxygen Cylinder Plant

The following papers are required for the oxygen cylinder business.

  • Personal papers (voter card, Aadhar card, and pan card)
  • GSTR number, registration number
  • Account number for the company
  • Registration of Aadhaar in the MSME sector
  • Organisation Registration
  • a business card
  • VAT Number

If you have already begun your oxygen cylinder business, you won’t have any trouble selling it because there is a high demand for these cylinders. All of your cylinders will be sold by hand, and customers are willing to pay any price to obtain oxygen. Up to 50,000 oxygen cylinders are for sale.

A 75-liter cylinder will run you about Rs 5500. By compressing it, oxygen is kept in the cylinder, which is why it arrives in such a little bottle. Its mass


Earnings in this industry are calculated either per kilogramme or per cylinder. A cylinder can be filled for between 100 and 200. On your plot, the more cylinders you fill, the more money you’ll make.


There is a significant risk to the security of the oxygen gas cylinder’s transportation because of the high pressure within. In this, work must be completed according to unique protocols.

Also Check: Best business ideas for villages


So in this post we told you each and everything about how to start an oxygen cylinder business in India and we also told you about investment , space requirements, profits risk in oxygen cylinder business in India and we hope that you found this article helpful.

Hello, I am Mansoor Mir. I am a part time blogger and a full time teacher. I have an experience of more than 4 years in the Blogging field, and I love writing about Business, Cryptocurrencies, NFTs, Technology and Academics.

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