Progression in the Business of Industrial Oxygen Gas Plant

Oxygen plant is industrial equipment used for generating high purity oxygen for industrial and medical applications. There is huge demand for oxygen in various industries and hospitals. If you are thinking of going into oxygen gas business, it must be understood that it is capital-intensive but lucrative. There is huge scope of profitability in this business. However, it is imperative that you have got excellent oxygen plant business plan for turning your gas business into profitable one. Solid plan will give you a better shot at making profits. Our manufacturing is reputed for making high quality oxygen plants. Industrial oxygen is among the most consumed gas and is present in the main streamline of several industries, mainly in steel manufacturing and healthcare sector.

Related Projects: Industrial Gases Projects

Important Aspects of Oxygen Business Plan:

There is no denying that oxygen business will prove to be profitable if you are properly cued into the fundamentals of the market. First of all, your oxygen plant business plan must contain feasibility study of the area in which you want to set up oxygen business. Besides, it is also important to know government regulations, oxygen plant set up cost, market trends, etc. Once you have got the feel of market conditions and government regulations, it is easy to set up business.

Once you have readied your oxygen plant business plan, it is time to implement all the details. Now you have to liaison with hospitals in your area for providing them oxygen cylinders containing medical oxygen. The hospitals will be your permanent clients if you are able to persuade them to take oxygen supplies from you.

Market Analysis of the Industrial Gases:

· The global industrial gases market size was valued at USD 92.0 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 6.0% from 2021 to 2028. The growth of the market is primarily attributed to the growing manufacturing industry in the developing economies of Asia Pacific. Moreover, increasing industrialization and urbanization, coupled with the increasing application of industrial gases in various industries, such as healthcare, metals and mining, and food and beverages, are expected to influence the market growth in coming years. Electronic applications of industrial gas are witnessing strong growth on account of the high demand for flat panel displays, semiconductors, and printed electronics.

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· Industrial production has been growing globally and is expected to grow further. There is an ever-growing demand in the aerospace and metal and mining industries, wherein various industrial gases are used on large scale. In addition, significant growth of the food and beverage and pharmaceutical industries in North America, Europe, and Asia Pacific is generating abundant opportunities for market growth.

· Manufacturers in the industrial gases market are expected to gain significant opportunities by focusing on countries such as China and India in the Asia Pacific, attributable to increasing capital expenditure for construction activities and mega infrastructure projects planned in the region in the foreseeable future. Ongoing investments in large-scale infrastructure projects and rampant investments in core industrial sector is expected to drive demand for industrial gases through 2029. Various initiatives in the form of tax relaxations, pliable regulations, low cost land, and access to resources have been taken by central and state governments to increase industrial penetration in respective regions.

Conclusion:

“Industrial Oxygen Gas Plant” is the project report by NPCS. The scope of this and all the other project report by NPCS is assessing market potential, negotiating with collaborators, investment decision making, corporate diversification planning etc. in a very planned manner by formulating detailed manufacturing techniques and forecasting financial aspects by estimating the cost of raw material, formulating the cash flow statement, projecting the balance sheet etc.

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Introduction

Project Introduction
Project Objective and Strategy
Concise History of the Product
Properties
BIS (Bureau of Indian Standards) Provision & Specification
Uses & Applications

Market Study and Assessment

Current Indian Market Scenario
Present Market Demand and Supply
Estimated Future Market Demand and Forecast
Statistics of Import & Export
Names & Addresses of Existing Units (Present Players)
Market Opportunity

Raw Material

List of Raw Materials
Properties of Raw Materials
Prescribed Quality of Raw Materials
List of Suppliers and Manufacturers

Personnel (Manpower) Requirements

Requirement of Staff & Labor (Skilled and Unskilled) Managerial, Technical, Office Staff and Marketing Personnel

Plant and Machinery

List of Plant & Machinery
Miscellaneous Items
Appliances & Equipments
Laboratory Equipments & Accessories
Electrification
Electric Load & Water
Maintenance Cost
Sources of Plant & Machinery (Suppliers and Manufacturers)

Manufacturing Process and Formulations

Detailed Process of Manufacture with Formulation
Packaging Required
Process Flow Sheet Diagram

Infrastructure and Utilities

Project Location
Requirement of Land Area
Rates of the Land
Built Up Area
Construction Schedule
Plant Layout and Requirement of Utilities

Project at a Glance

Assumptions for Profitability workings	Plant Economics
Production Schedule
Land & Building Factory Land & Building Site Development Expenses
Plant & Machinery Indigenous Machineries Other Machineries (Miscellaneous, Laboratory etc.)
Other Fixed Assets Furniture & Fixtures Pre-operative and Preliminary Expenses Technical Knowhow Provision of Contingencies
Working Capital Requirement Per Month Raw Material Packing Material Lab & ETP Chemical Cost Consumable Store
Overheads Required Per Month And Per Annum Utilities & Overheads (Power, Water and Fuel Expenses etc.) Royalty and Other Charges Selling and Distribution Expenses
Salary and Wages	Turnover Per Annum
Share Capital Equity Capital Preference Share Capital
Annexure 1:: Cost of Project and Means of Finance
Annexure 2:: Profitability and Net Cash Accruals Revenue/Income/Realisation Expenses/Cost of Products/Services/Items Gross Profit Financial Charges Total Cost of Sales Net Profit After Taxes Net Cash Accruals
Annexure 3 :: Assessment of Working Capital requirements Current Assets Gross Working. Capital Current Liabilities Net Working Capital Working Note for Calculation of Work-in-process
Annexure 4 :: Sources and Disposition of Funds
Annexure 5 :: Projected Balance Sheets ROI (Average of Fixed Assets) RONW (Average of Share Capital) ROI (Average of Total Assets)
Annexure 6 :: Profitability ratios D.S.C.R Earnings Per Share (EPS) Debt Equity Ratio
Annexure 7 :: Break-Even Analysis Variable Cost & Expenses Semi-Var./Semi-Fixed Exp. Profit Volume Ratio (PVR) Fixed Expenses / Cost B.E.P
Annexure 8 to 11:: Sensitivity Analysis-Price/Volume Resultant N.P.B.T Resultant D.S.C.R Resultant PV Ratio Resultant DER Resultant ROI Resultant BEP
Annexure 12 :: Shareholding Pattern and Stake Status Equity Capital Preference Share Capital
Annexure 13 :: Quantitative Details-Output/Sales/Stocks Determined Capacity P.A of Products/Services Achievable Efficiency/Yield % of Products/Services/Items Net Usable Load/Capacity of Products/Services/Items Expected Sales/ Revenue/ Income of Products/ Services/ Items
Annexure 14 :: Product wise domestic Sales Realisation	Annexure 15 :: Total Raw Material Cost
Annexure 16 :: Raw Material Cost per unit	Annexure 17 :: Total Lab & ETP Chemical Cost
Annexure 18 :: Consumables, Store etc.,	Annexure 19 :: Packing Material Cost
Annexure 20 :: Packing Material Cost Per Unit	Annexure 21 :: Employees Expenses
Annexure 22 :: Fuel Expenses	Annexure 23 :: Power/Electricity Expenses
Annexure 24 :: Royalty & Other Charges	Annexure 25 :: Repairs & Maintenance Exp.
Annexure 26 :: Other Mfg. Expenses	Annexure 27 :: Administration Expenses
Annexure 28 :: Selling Expenses	Annexure 29 :: Depreciation Charges – as per Books (Total)
Annexure 30 :: Depreciation Charges – as per Books (P & M)	Annexure 31 :: Depreciation Charges - As per IT Act WDV (Total)
Annexure 32 :: Depreciation Charges - As per IT Act WDV (P & M)	Annexure 33 :: Interest and Repayment - Term Loans
Annexure 34 :: Tax on Profits	Annexure 35 ::Projected Pay-Back Period And IRR