Starting an Oxygen Manufacturing Plant in India: Your Quick Guide

Starting an Oxygen Manufacturing Plant in India

Written by Pharmadocx Consultants

22 January 2025

Starting an oxygen manufacturing plant in India can be a high potential business opportunity. Medical oxygen will always be in high-demand in the healthcare sector. Hence, manufacturing oxygen to cater to hospital demands will have a bright future. However, for setting up an oxygen manufacturing facility, regulatory compliance and considerable planning are required. First, you need acquire land and license and permits for starting a manufacturing facility. Then, the necessary equipment and machinery have to be installed. Furthermore, financial, production, and operational planning will be required. Moreover, adherence to industry standards and quality benchmark is required to consistently manufacture high-purity oxygen suitable for medical use. Steady and reliable supply of medical oxygen forms one of the pillars of effective healthcare delivery. Therefore, oxygen manufacturing plants have a vital role in life-saving procedures and aiding patients with respiratory illnesses.

In this blog, we have detailed how to set up an oxygen manufacturing facility in India. We have discussed the key requirements to manufacture oxygen. Additionally, we have highlighted why new entrepreneurs should venture into oxygen manufacturing business. Moreover, we have touched upon the licenses and permits required to establish a manufacturing facility in India.

What is an oxygen manufacturing plant?

An oxygen manufacturing plant is an industrial system intended to generate oxygen from atmospheric air at an industrial scale. The industrially generated oxygen can have various applications in different fields, such as medical, industrial, and environmental. Plants manufacturing medical-grade oxygen are in high demand for catering to hospitals and clinics. An oxygen manufacturing facility has a pivotal role in providing a sustainable and reliable supply of oxygen.

Key components of an oxygen manufacturing facility

Oxygen manufacturing facilities require several key components for efficient production of oxygen. Specialized machinery, such as oxygen concentration units, cylinder filling stations, and testing equipment, are required for the process of manufacturing oxygen. Moreover, high-quality raw materials, such as long-lasting plastics, metal cylinders, and concentrator filters, are also key requirements for setting up an oxygen manufacturing plant. We have listed some of the key components required for establishing an oxygen manufacturing facility.

  1. Air compressors that take in air
  2. Air separation units required for oxygen isolation
  3. Purifiers for removing impurities
  4. Tanks for storing the produced oxygen
  5. Advanced control systems for monitoring the production process as well as ensuring optimal purity and output.
  6. Safety equipment to prevent any operational hazards while manufacturing oxygen

Furthermore, specialised systems are required to manufacturing oxygen suitable for medical use. Cleanroom are necessary to prevent contamination and maintain the purity of medical oxygen. Moreover, for compliance with Good Manufacturing Practices (GMP) and medical device industry regulatory regulations, quality control units per regulatory guidelines have to be set up. These quality control units have to be installed in addition to the necessary quality testing units for manufacturing oxygen. This is because the manufactured oxygen should be of medical grade and be safe for patient use. Additionally, the infrastructure should be per regulatory guidelines to manufacture oxygen that can be used in hospitals. Thus, an oxygen manufacturing facility intending to manufacture medical oxygen requires additional components to produce oxygen suitable for medical use.

Advantages of starting an oxygen manufacturing plant in India

Starting an oxygen manufacturing plant in India is a great opportunity for new entrepreneurs.

  • Considerably high demand: Medical-grade oxygen is in high-demand in the healthcareindustry.Thus, an oxygen manufacturing business in India will witness an unprecedented growth. Hence, a manufacturing facility providing a reliable supply of high-quality oxygen will be in high demand.
  • The primary raw material is easily available: Atmospheric air is the primary raw material required for manufacturing oxygen. Hence, the primary raw material is easily available. Additionally, adsorbents, molecular sieves, lubricants, and catalysts are easily available in the Indian market. Hence, raw material procurement should not be a problem.
  • Availability of cheap skilled labour: Availability of cheap skilled labour is the biggest advantage of starting an oxygen manufacturing business in India. In most countries, skilled labour is not easily available at considerably low wages. This provides Indian manufacturers a competitive edge over foreign manufacturers.

How to start an oxygen manufacturing plant in India?

Starting an oxygen manufacturing plant in India requires proper planning and research.

  1. Business plan: First step of setting up an oxygen manufacturing facility is chalking out a detailed business plan. The plan should focus on target production capacity, cost of setting up the facility, and operational plan for efficient production. A thorough financial plan, including budget allocation, expected returns, and revenue streams, should also be a part of the business plan.
  2. Market analysis: A thorough market analysis is required for starting an oxygen manufacturing business. It should focus on market conditions, target market size, potential competitors, opportunities, and challenges that may impact the business.
  3. Selecting land for setting up the manufacturing facility: You need to select an appropriate land for setting your facility. Moreover, appropriately choosing the land location is vital. The location should have good transport links as well as be close to the intended market. A strategic location with access to transportation links, essential requirements, and utilities has a vital role in ensuring the success of your business.
  4. Purchasing necessary equipment and machinery: Specialized machinery, equipment, and infrastructure are required to manufacture oxygen. Furthermore, the target production capacity will determine the type of equipment and machinery required. Also, the level of automation to be used will determine the necessary technology the equipment should have.
  5. Workforce: Skilled personnel and experts in the field of oxygen manufacturing have to be hired to oversee the set up and daily operation of the manufacturing facility. Your workforce and staff will have a crucial role in the success of the venture.
  6. License and permits: You need to secure the necessary license from regulatory authorities to start an oxygen manufacturing business. Additionally, necessary permits have to be obtained to legally establish the manufacturing plant in the area.

Our detailed project report service covers all the above prerequisite planning and research required to start an oxygen manufacturing plant in India. With our comprehensive report prepared using real and accurate data, you can make informed decisions for starting your oxygen manufacturing business.

Permit and licenses required for starting an oxygen manufacturing plant in India

  • Certification of incorporation has to be secured to legally establish a business entity.
  • Factory license is required to establish the manufacturing plant. As per Factories Act of 1948, securing the factory license is a mandatory requirement to legally establish a manufacturing facility. The factory has to be registered with the local authorities.
  • An approval has to be secured from the Petrol and Explosives Safety Organisation (PESO). The license has to be secured under the Drugs and Cosmetics Act, 1940, which deals with the manufacturing and sale of oxygen.
  • ISO certificate has to be obtained.
  • NOC from State Pollution Control Board has to be obtained.
  • NOC from the Fire Department will also be required.
  • Quality Management Certificate has to be secured.

We have provided an overview of the permits and licenses required. For a detailed list of permits and licenses to be secured, feel free to contact us. Moreover, our team will help you secure these licenses in a hassle-free manner. Additionally, our document preparation service covers necessary supporting document preparation and compilation for license application.

Pharmadocx Consultants: Your trusted regulatory support

Our team has extensive expertise and knowledge in regulatory requirements and industry guidelines. We will guide you with land location, equipment, and raw material supplier selection. Additionally, our project report preparation service provides market research and sale projection along with all the prerequisites for establishing an oxygen manufacturing business. Furthermore, license application and document preparation are our forte. Additionally, avail our factory layout designing service to have a manufacturing plant with regulatory compliance and efficiency at its core. We tailor our services per client needs. Email at [email protected] or call/Whatsapp on 9996859227 to let us help you start a successful oxygen manufacturing plant in India.

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