Young entrepreneurs, business professionals, investors, seeking to commence their own venture, can achieve dream business projects with NIIR Project Consultancy Services (NPCS). It provides every aspect of business initiating from understanding the market, checking availability of various requirements such as raw materials, plant and machinery to financial requirements. One such researched and analysed projects by experts is of Oxygen Gas Manufacturing. Oxygen, heavier than air, is an important element for living beings and has a crucial part in its lives. Oxygen gas is not only essential for medicine and recreation but also for various other industrial purposes, to exemplify:
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- Welding and Cutting of Steel
- Ship Repairing
- Fabrication Work
- Water Treatment
- Fishery in Industry Scale
Hence, Oxygen, being an important gas with minimum guarantee of 99.5 percent purity, is required for various industrial requirements. One such work usage of oxygen is in the industry of steel where supply of oxygen tends to remain high due to which extra oxygen is stored in steel cylinders and sent to the steel plants. Therefore, manufacturing of Oxygen gas business has a good scope and place in the markets.
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What Makes Manufacturing Of Oxygen Gas A Good Business?
Besides being highly beneficial to human life and working as a life support in hospitals to the patients, oxygen is an industrialized tool, needed to complete certain tasks in the steel industry, for instance. It is a good project to establish your roots with, as it is a necessary form of element to many individuals for multiple works. As there is huge demand of oxygen, here are some aspects of success in Oxygen Gas Manufacturing Industry:
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- Planning – For turning a capital intensive oxygen manufacturing business into a profitable one, you ought to be ready with a solid plan. There is a need to strategize certain steps before starting an oxygen plant. For instance, the ratio of medical oxygen for hospital usage as compared to the industrialization usage of oxygen is 20 and 80 respectively.
- Two Major Segments of Gas Industry – The first major segment, Tonnage or supply scheme market, is received through pipelines directly and is also composed of large volumes, whereas the other one is a merchant or bulk liquid market with fluctuating demand rates of clients and is often purchased for less than a five year period.
- Knowledge Of Fundamentals – Besides the fact that oxygen plant is a proven profitable business due to its excessive demand in the market, you need to have a proper understanding of the market’s fundamentals and feasibility of that area where the business needed to be set up.
- Government Regulations – It is mandatory to know the government regulation as well. Currently due to Covid-19, manufacturing of industrial oxygen with an uninterrupted supply for the medical use is to treat coronavirus patients on the recommendation of the World Health Organization. The president of All India Industrial Gases Manufacturers Association (AIIGMA), Saket Tiku said that as per the requirement of Indian population, the available medical oxygen, used to maintain the level of gas in blood, is 700 tonnes a day, whereas India has 80,000 tonnes of oxygen supply in stock.
- Market Trends – Steel industry has an immense contribution in utilization of industrial oxygen which is 47.56 percent. The plant capacity is expected to cost approx 1080000Cu. m/annum, and the plant machinery tends to cost around 110 lakhs. The worldwide market of industrialised oxygen is 43100 million USD in 2019 which is expected to grow by CAGR of 6.7 percent approximately i.e 59700 million USD by 2024 as per a recent study.
For any further queries, visit our website www.niir.org and get hold of multiple project ideas for startup and business expansion.
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