PROJECT REPORT

Company: SLV INDUSTRIAL AND MEDICAL GASES

(Field: Industrial And Medical Gases Filling Plant)

1. INTRODUCTION

SLV Industrial and Medical Gases offers supply of Industrial Gases, Medical Gases,
Mixture Gases, Calibration & Speciality Gases to various industries, hospitals and
health care units.

SLV Industrial and Medical Gases presently has its sales office at Hennur cross. The
annual turnover of the company stands at approximately 2.5 crore per annum. The
company has an industry experience of more than 20 years in field of industrial gases.

1.1 Constitution

SLV Industrial And Medical Gases is proprietorship firm operated by Mr. Vegesha
V. and its parent company is SLV AIR PRODUCTS LLP which is a partnership firm
operated by two of its partners namely Mr. Vegesha V and Mr. Chandra V, both
having equal amount of investment, shares and rights in the company.

In order to expand its business, SLV Industrial and Medical Gases has invested in
production and manufacturing unit in the name of “SLV AIR PRODUCTS LLP”. Which
has its Bottling / Filling Plant at survey no.4/3, Bande Bommasandra, Bengaluru east
taluk, Bengaluru - 562149.

1.2 About Project:

1.2.1 Industrial Gases, Medical Gases and Mixture Gases:
SLV Industrial and Medical Gases offers wide range of gases that
encompasses Industrial Oxygen, Medical Oxygen, Nitrogen, Argon,
Nitrous Oxide and Carbon-dioxide. We also offer special gases such as
Helium Gas, Hydrogen Gas, Refrigeration Gases, mixture Gases includes
Argon-Carbon dioxide Mixture, Argon–Nitrogen Mixture, Nitrogen–
Hydrogen Mixture, Argon-Oxygen Mixture Gases.

1.2.2 Liquid Gases:

We also offer the supply of cryogenic liquids such as Liquefied Oxygen
(LOX), Liquefied Nitrogen (LIN), and Liquefied Argon (LAR) through
robust fleet of transport vehicles such as Cryogenic Vacuum Insulated
Transport Tankers (VITT) of 20KL capacity each for LOX, LIN and LAR.
Liquid can be supplied to various industries and medical unit
establishments in which the liquids can be stored into installed units such
as dura tanks of capacity 180 KL / 220 KL / 250 KL & and also to storage
tanks of 1 KL, 3 KL, 6 KL, etc in our transport tanks.

1.2.3 Gas Equipments, Other Sales And Services:

We also offer sales of Industrial cylinders, medical cylinders, Valves, Dura
Cylinders and Vacuum Insulated Storage Tankers (VIST). In order to
meet the ever growing customer demands we provide Gas Handling

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 Equipments such as industrial regulators, medical regulators, Gas Pipeline
and Manifold systems.

1.2.4 Automated Cylinder Testing:

We also undertake hydro pressure test for all type of Industrial and
Medical cylinders. Considering the safety standards, the cylinders are
tested periodically as per the PESO rules and BIS regulations.

Cylinder testing services will also be offered to other gas related SSI,
Agencies and Hospitals.

1.3 About Promoters

SLV Industrial and Medical Gases is proprietorship firm operated by Mr. Vegesha V
having its own office premises, sales and registered office located at No. 61, ES
Maruthi Layout, Opp Indian Academy P.U College, HBR 4 th Block, Hennur Cross,
Bengaluru – 560043.

SLV AIR PRODUCTS which is registered in the year 2020, is the parent company of
SLV Industrial and Medical Gases. SLV AIR PRODUCTS LLP is registered under GST act
and has GST Registration Number: 29AEHFS1659E1ZS.

The company will be operated jointly by its partners as mentioned below:

Partners:
1. Vegesha V (50% Share)
2. Chandra V (50% Share)

1.4 Requirement of Financial Assistance

Because of the growing demand in medical sector for medical oxygen due to covid-19
and also due to increased demand for the need of industrial gases, we have thought
that it is the right time in expanding the business by starting our own production and
manufacturing of Industrial Gases, Medical Gases and Special Gases plant.

Because of the above reason we would require financial assistance from bank for
machineries used in production and manufacturing equipments which are as below
mentioned.
 Cryogenic Storage tanks for Liquid Oxygen, Carbon-dioxide,
Nitrogen, Argon and Nitrous Oxide Gas.
 Vaporizers for converting liquid to Gaseous form.
 Cylinder filling tank pumps with electrical panel.
 Latest Cylinder Manifold System.
 Automated Cylinder Test Shop.
 Liquid Transport Tankers (Cryogenic Vacuum Insulated
Transport Vehicles.)
 Working capital

2. PROMOTERS & PARTNERS OF COMPANY

SLV Industrial And Medical Gases is a proprietor ship firm which was
established in the year 2017. Company is operated by its proprietor Vegesha V and
his personal details and net worth is as follows:

Partner 1:
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 Name 1. Mr. Vegesha V

Father’s Name Venkatesh M

Age 35 years
MDM Paradise, Flat No. 301, HRBR 3 rd Block, 3rd Cross,
Address 3rd Main, Ganesha Temple Road, Kacharakanahalli,
Bengaluru - 560084
Qualification B.E & MBA

Aadhar Number 4250 7850 8776

KYC’s
PANCARD AHUPV1802C
1. 8 years’ experience in marketing & sales.
Detailed Experience
2. 2 years’ experience as Business Developer.
Liabilities: 1. Auto Loan at Vijaya Bank Rs. 15,00,000/-
1. Personal Car - Tata Harrier
Rs. 16,00,000/-
Net approximate value
Worth 2. Commercial Vehicles (Mahindra
Asstes: Rs. 6,00,000/-
Supro & TATA 207) approx. value
3. Undivided Share of flats in MDM
Properties & SLV Mansion valued Rs. 4,00,00,000/-
approximately

SLV Air Products is a limited liability partnership firm being the parent company
of SLV Industrial And Medical Gases is operated by two partners namely Vegesha V
and Chandra V and partners details is as below:

Partner:

Name 2. Mr. Chandra V

Father’s Name Venkatesh M

Age 45 years
MDM Paradise, Flat No. 501, HRBR 3 rd Block, 3rd
Address Cross, 3rd Main, Ganesha Temple Road,
Kacharakanahalli, Bengaluru - 560084
Qualification B.Com
Aadhar
3432 8010 8137
KYC’s Number
PANCARD ABTPC7640N
Detailed Experience 1. 5 years’ experience in production &
procurements.
2. 10 years’ experience in marketing, Sales and

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 Project Management.
Liabilities: 2. Housing Loan at HDFC Rs. 17,25,633/-
4. 1 BHK flat in Jal Vayu Vihar @
Rs. 44,00,000/-
Net present market rate
Worth 5. Personal Car - Skoda Laura
Asstes: Rs. 6,00,000/-
approximate value
6. Undivided Share of flats in MDM
Properties & SLV Mansion valued Rs. 4,00,00,000/-
approximately

3. MARKET

3.1 Industry Description

Oxygen is used for metal fabrication, steel cutting & smelting, medical applications
includes use of Medical oxygen for patients, and nitrous oxide gas is used as
anaesthesia gas for surgeries. Oxygen is also used in copper smelting, etc., Oxygen is
used to treat hazardous wastes, polluted water, and for gasification process. Thus,
large-scale application of oxygen in various industries is expected to propel the
demand for industrial oxygen in coming years.

Nitrogen gas is used on large scale in healthcare sector and the growing medical and
pharmaceutical industry. Nitrogen is an inert gas and finds applications in heat-
treatment for establishing a neutral atmosphere. The gas is also used in huge
quantities in blast furnaces, laser cutting machines and various other furnace
applications due to its neutral properties.

Carbon-dioxide gas is used in fire-extinguishers. It is also used in food & beverages

companies for manufacture of carbonated drinks such as sodas, beers etc.

3.2 Medical Market @ Our Premises:

Bengaluru north and central region has 500 plus hospitals and health care units out of
which 200+ are centrally located around our production, manufacturing and sales
office at Hennur cross. Among these hospitals we already have our continuous
business relationships with many of the hospitals for supply of medical gases.

Apart from the above mentioned we also provide medical oxygen to many small and
medium health care clinics, individuals, old age homes, ambulances etc.

We are wanting to expand our business models in other district such as Tumkur,
which is a rapidly growing industrial area with many MNCs, Industries which are
starting their productions in the field of Pharma industries, Steel industries,
automobile industries and various other industries which are in need of Industrial and
Medical Gases.

3.3 Industrial Market @ Our Premises:

There are more than 2000+ small and medium scale industries located around our
premises in radius of 10kms from our production, manufacturing and sales office at
Hennur cross who are in the field of metallurgy & metal working Industry. Among
these customer base we are serving industrial gases to more than 800+ customers
from past decade.

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Our existing and target customers for use industrial gases are mainly in the following
segments:
 Contractors of BMRCL working in metal fabrication.
 Metal Scrap cutters / dealers.
 Metal fabricators who are into building industrial sheds.
 Precision Laser Cutting Contractors.
 Fire Extinguisher contractors.
 Food & Beverage manufacturers.
 Automobile service centres.

Apart from the above mentioned, we have more than 10 industrial gas retail suppliers
whose daily sales averages for more than 75 cylinders every day. This takes the total
counts of gas cylinders in retail sales to more than 750nos on daily basis.

3.4 Market Size

The manufacturing industry accounts for the largest share and is projected to register
the second highest CAGR during the forecast period. The demand for industrial gases
such as nitrogen, oxygen, argon, carbon-dioxide, hydrogen and others in
manufacturing industry is projected to witness substantial growth in the developing
economies such as India owing to the growing manufacturing industries across all its
regions. Growing demand for Aatmanirbhar Bharat is further expected to propel the
growth of this segment.

Industrial and Medical Gases Market Share by Application

3.5 Growth – Trends:

Due to Covid-19 there is steep increase in demand for medical oxygen from
healthcare sector which is driving the demand for the medical gas across all regions.
Economic experts also predict that the trend is expected to continue for at least
coming few years due to covid-19 situation. The Indian industrial gas market is
expected to register the growth at a CAGR over 7% during the forecast period.

The upcoming industrial area at Bagalur will have a great impact in the need of
industrial gases. As there are multiple upcoming hardware parks, aviation park and
R&D units expected to kick start their business in coming years. This will have direct
impact in increased sales of industrial and medical gases as our production unit is very
close by these region.

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Growth in the emerging economies such as India will remain the most important
driver of economic trends over the coming years.

Demand from applications in metallurgy and metal industries is expected to stimulate

the industrial gases growth in the long term.

India’s specialization in cardiology, orthopaedic surgery, etc., is expected to drive

healthcare demand, particularly for medical oxygen and nitrous oxide, which are vital
requirements of any healthcare setup.

According to “India Medical Gases Market Forecast & Opportunities, 2019”, the
medical gases market size in India, in volume terms, is forecast to witness a two folds
increase by 2019, exhibiting a CAGR of about 15% during 2014-19.

Projected Growth of Industrial and Medical Gases

3.6 Competitive Analysis:

Our main competitors in this field are Universal Air Products located in Peenya and
Peenya Industrial & Medical Gases. These manufacturing and production units are
more than 30 kms away from our production unit which will help us to target their
customers located around our production unit. This will help us provide a better
service in terms of delivery time, reduced transport cost and also provide competitive
price to customers.

 Our Unique Selling Proposition:

 Our U.S.P is mainly based on service, quality and timely delivery of the
industrial and medical gas cylinders to our nearby customers.
 Competitive price shall be offered to customers located within 20 kms radius
from our production unit to acquire nearby market share.
 There would be a working plan and contract with transporters to deliver the
cylinders on time at customer location.
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  Sophisticated software and sales team will be used to track the cylinders and
to do customer follow ups for constant orders and feedbacks to improve our
sales.

 Entry Barriers:
 High cost involved in procuring Vacuum Insulated Storage Tankers (VIST)
which are transport vehicles for supply of Liquid Oxygen and Liquid Nitrogen.
 High land costs are involved in case of purchasing or renting the premises at
suitable locations as per PESO approved standards.
 In hand work experience and exposure is required in handling the safety
measures of Industrial, Medical Gases and Liquids.

3.7 Target Market

Our main target customers will be our competitor’s customers in close vicinity of our
manufacturing and production unit.

Also we would like to target the wholesale customers, gas agencies located nearby to
our unit for regular and constant business.

Apart from the above we would be looking at the following industries for increased
sales.
 Metallurgy & Metal Working Industry.
 Hospitals, Pharma companies And R&D Health Care Units.
 Food & Beverages manufacturing units.
 Automotive & Aerospace Industries.

4. INFRASTRUCTURE FACILITIES

4.1 Location:
Our production plant comes under WHITE CATEGORY with ZERO pollutants as per
Karnataka State Pollution Control Board.

Our present production plant is situated under GREEN ZONE area and has acquired all
necessary permissions from respective authorities and has cleared all the rules and
regulations as required by PESO.

SLV Air Products LLP has its manufacturing unit and sales office located at following
addresses:
 Plant Address: Site No.1, Survey No.4/3, Bande Bommasandra,
Erappanahalli Main Road, Bidarahalli Hobli, Bengaluru East Taluk, Bengaluru -
562149.
 Sales office Address: No.61, ES Maruthi Layout, Opp Indian Academy P.U
College, HBR 4th Block, Hennur Cross, Bengaluru - 560043

Our production plant distance to major industrial and tech parks:

 Hoskote Industrial Area = 18 Kms. (Source for Raw Materials)
 Bagalur Industrial, hardware tech park = 15 kms. (Upcoming business for our
future endeavours)
 Many of retail & Wholesale customers are based at K.G Halli, Hegde Nagar, K
R Puram, Nagawara, Kothnur, and Banaswadi etc for whom industrial and
medical gases will be supplied from our sales office located at Hennur Cross.

4.2 Power & Utilities:

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In order to power the machineries and for lighting up premises, we would be requiring
power capacity of 15 HP for which we have received the permission letter and general
license dated 03/11/2020 from BESCOM and Kannur Village Gram Panchayat
Development Authority.

As backup and in case of power failures, we are setting up a diesel generator of 62

KVA capacity for continuous productions without any hindrance in bottling the gas into
cylinders. This will ensure the timely delivery of cylinders to our customers.

4.3 Manpower:
We have labour sheds built next to premises with all facilities such as toilets, kitchen
and resting rooms for labourers coming from other states for working in the plant and
staying in plant. They are usually the unskilled labours whose nature of work will be
lifting, moving, loading and unloading the cylinders. Approximately we will be
requiring 6-7 unskilled labours.

We have more than 5 drivers with valid transport vehicle license for supply, pickup
and delivery of cylinders at end customer locations.

Skilled labour includes people with experience in the field of marketing, sales and
accountings. Skilled labours may vary from 8 to 10 in numbers.

We have three experienced operators who will be in charge in running the machineries
and starting bottling of gas into cylinders every day.

There will be 3 Security guards working in 24x7 in rotational shift basis who will be
looking after people coming in an out.

4.4 Transportation Facilities to Our Existing Plant

 Our plant is attached to 80 feet interconnecting highway road, where
movements of vehicles and trucks are easy and accessible.
 Distance from plant to link airport road is 4 kms and state highway is 8 kms.
 Nearby bus stop is 0.5 kms, nearby railway station is K R Puram which is at
distance of 10 kms.

5. MANUFACTURING PROCESS FLOW CHART

1. Cryogenic tanks is used for storing liquid oxygen, Liquid Co2, Liquid Nitrogen
and Liquid Argon. These tanks are specially designed to store liquid at very
low temperatures.
2. Cryogenic tanks are connected to vaporizers. The main function of
vaporizers is to convert Oxygen, Co2, Nitrogen and Argon from liquid state
to gaseous state.
3. Cryogenic pumps are then used to pump the gas from cryogenic tanks &
vaporizers into cylinder manifold systems where cylinders are connected and
gas is filled.
4. Gas manifold systems are fitted with high precision gas regulators and which
would show the quantity and pressure of gas filled into cylinders.

6. INSTALLED CAPACITY

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6.1 Balancing Machineries and Production:
 At SLV Air Products the Liquid Oxygen, Nitrogen, Co2 and Argon is stored in
cryogenic tanks (Example: like water stored in water tanks) and when there
are minimum number of empty cylinders at factory then the plant can be
turned ON and cylinders can be filled with gases in less than 1 hour.
 Gases can be stored inside cylinders for more than 1 year without any loss
factors. Hence there won’t be any wastage of liquid gases.

6.2 Total Production Hours per Day:

 1st batch production timings: 7 AM to 1.00 PM = 6 hrs (360 mins)
 2nd batch production timings: 3 PM to 9.00 PM = 6 hrs (360 mins)

Total Production hours = 12 hours

 In case of increased demand, requirement and emergency situations plant can

be run up to 18 hours a day.

6.3 Total Production Capacity:

6.3.1 Oxygen Gas Cylinders:

 Our production plant has got bottling gas manifold system that has
filling capacity of 90 cylinders which can be filled approximately within
90 mins.

No. of Oxygen cylinders which can

= 60 cylinders
be filled in 60 mins or 1 hr
1st batch working 480 mins or 8 hrs 8 x 60 = 480 cylinders
2nd batch working 480 mins or 8 hrs 8 x 60 = 480 cylinders
Total Production Capacity per
= 960 cylinders per day
day

6.3.2 Nitrogen Gas Cylinders:

No. of cylinders which can be filled

= 40 cylinders
in 60 mins or 1 hr
1st batch working for 8 hrs 8 x 40 = 320 cylinders
2nd batch working for 8 hrs 8 x 60 = 320 cylinders
Total Production Capacity per
= 640 cylinders per day
day

6.3.3 Argon Gas Cylinders:

No. of cylinders which can be filled

= 40 cylinders
in 60 mins or 1 hr
1st batch working for 8 hrs 8 x 40 = 320 cylinders
2nd batch working for 8 hrs 8 x 60 = 320 cylinders
Total Production Capacity per
= 640 cylinders per day
day

6.3.4 Carbon Di Oxide Gas Cylinders:

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 No. of cylinders which can be filled
= 40 cylinders
in 60 mins or 1 hr
1st batch working for 8 hrs 8 x 40 = 320 cylinders
2nd batch working for 8 hrs 8 x 40 = 320 cylinders
Total Production Capacity per
= 640 cylinders per day
day

6.3.4 Nitrous Oxide Gas Cylinders:

No. of cylinders which can be filled

= 30 cylinders
in 60 mins or 1 hr
1st batch working for 8 hrs 8 x 30 = 240 cylinders
2nd batch working for 8 hrs 8 x 30 = 240 cylinders
Total Production Capacity per
= 480 cylinders per day
day

6.3.5: Mixture Gases:

 Apart from the production and bottling of gases such as Oxygen,
Argon, Nitrogen, Co2 and Nitrous Oxide. We also undertake bottling of
other mixture gases such as ACM (Argon-Co2 Mixture Gases), ANM
(Argon-Nitrogen Mixture Gas).

6.4 Planned Production for 1st year at SLV Air Products:

 Our present sales at our agency under name of “SLV Industrial and
Medical Gases” has approximate industrial oxygen cylinder sales per
day of around 150 numbers.
 We have daily sales of medical cylinders of up to 80 cylinders on
average on daily basis.
 We have confirm orders from other gas agencies who are also into
retail sales located around our production unit who have given us a
confirmed orders of approximately 300 cylinders from day of
production started at SLV Air Products.

6.4.1 Industrial And Medical Oxygen Cylinders Production Per Day:

Industrial cylinder sales from our existing unit 300 cylinders

Medical cylinders sales from our existing unit 150 cylinders
Orders from other agencies on daily average
500 cylinders
basis
Total Estimation of Industrial And Medical
950 Cylinders
Cylinders per day

6.4.2 Co2, Nitrogen, Argon and Mixture Gas Cylinders Production

Per Day:
Estimated Co2 Cylinder cylinders per day 640 cylinders
Estimated Nitrogen Cylinders per day 640 cylinders
Estimated Argon Cylinders per day 640 cylinders

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 Other Mixture Gases such as ACM, N2O etc 30 cylinders
Total Estimation of Co2, Nitrogen, Argon &
320 cylinders
Mixture gas per day

6.4.3 Estimated production on an average daily basis is as follows:

Total Industrial and Medical Oxygen Cylinder

950 cylinders
sales per day
Total Co2, Nitrogen, Argon and Mixture gas
2560 cylinders
cylinder sales per day
Total Estimated Production per day 3510 cylinders

6.5 No of Working Days Per Annum:

 At SLV Air products, production will be in 2 batches and total number of
working days is as mentioned below:

Weekly = 6 Days

52 weeks x 6 days = 312 Days per annum

Selected Govt Holidays = (-)14 Days

Total Working Days per

= 298 Days
annum =

 Sundays holiday and is a non-working day.

7. COST OF PROJECT

7.1 Land at KIADB Area:

 SLV Industrial And Medical Gases has plans to buy industrial land from KIADB
preferably at TUMKUR Industrial Area because of the presence of many steel
industries, automobile manufacturing industries, pharmaceutical R&D
companies etc.
 After obtaining land we are planning to start productions and serve the
industries around the tumkur industrial area and it is going to be our 2 nd
manufacturing unit.
 Land Requirement and our allocated budget for the land is as follows:

Required Land Area = 2 Acres

Land Cost approx. = Rs. 1 Crore

7.2 Processing Fees and consultant charges:

 M/s Eureka Gases having registered office in Peenya and represented by its
proprietor Mr. Manjunath (Mobile #: +91 9900562308) is the competent
person and he is our consultant for getting the necessary initial approvals,

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 final approvals from PESO (Petroleum and Explosives Safety Organisations)
and required Govt. licenses from all the authorities.

 Consultant Fees break ups and charges is as follows:

Consultant fees, Govt fees for Initial
= Rs. 10,00,000/-
approval for PESO Work (approx.)
Other Charges = Rs. 5,00,000/-

Total = Rs. 15,00,000/-

7.3 Land Development, Excavation, Construction and Platform Expenses:

Construction of Boundary Wall (7ft Height) right round the

= Rs. 60,00,000/-
land as per PESO rules.
Excavation work 8ft dia, 8ft depth and concrete platform for
= Rs. 25,00,000/-
erection of Liquid tanks (oxygen, Co2, Nitrogen & Argon)
Concrete platform of 4 ft height. = Rs. 20,00,000/-
Cost for Design, Supply and Erection of Pre Engineered
= Rs. 1,50,00,000/-
Steel Building (Industrial Shed)
Administration and Front office with RCC Roof (18ftx20ft) = Rs. 15,00,000/-

Security room construction (6ft x 6ft) = Rs. 50,000/-

Labour Sheds (12ft x 15ft) = Rs. 15,00,000/-

Construction of 30 feet road inside premises = Rs. 60,00,000/-

Miscellaneous Expenses = Rs. 4,50,000/-

Total Rs. 3,50,00,000/-

7.4 Plant & Machinery Cost:

Machineries Cost
Cryogenic Liquid Oxygen Tank - 47 KL Rs. 78,00,000
Cryogenic Liquid Nitrogen Tank - 33 KL Rs. 65,00,000
Cryogenic Liquid Argon Tank - 27 KL Rs. 60,00,000
Cryogenic Liquid Co2 Tank - 47 KL Rs. 95,00,000
Cryogenic Liquid Nitrous Oxide Tank - 20 KL Rs. 55,00,000
Liquid oxygen pump CM36/32 with electrical panel
Rs. 7,50,000
board.
Cylinder filling liquid Nitrogen pump CM36/32 with
Rs. 7,50,000
electrical panel board.
Cylinder filling liquid Argon pump CM36/32 with electrical
Rs. 7,50,000
panel board.

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Carbon-Dioxide pump with electrical panel board. Rs. 7,80,000

Nitrous Oxide pump with electrical panel board. Rs. 7,80,000

Liquid Vaporizers for Oxygen Tank of 600 NM3 Rs. 6,50,000

Liquid Vaporizers for Nitrogen Tank of 600 NM3 Rs. 6,50,000

Liquid Vaporizers for Argon Tank of 600 NM3 Rs. 6,50,000

Cylinder manifold systems of 40+40+10 for filling
Rs. 15,00,000
Oxygen Gas Cylinders Filling
Cylinder manifold systems of 40+40+10 for filling
Rs. 15,00,000
Nitrogen Gas Cylinders Filling
Cylinder manifold systems of 40+40+10 for filling
Rs. 15,00,000
Argon Gas Cylinders Filling
Carbon Di Oxide Filling Stations with Weigh scales Rs. 8,00,000

Nitrous Oxide Filling Stations with Weigh scales Rs. 8,00,000

Automated Argon-Nitrogen Mixture Machineries Rs. 12,50,000

Automated Argon-Co2 Mixture Machineries Rs. 12,50,000

20KL Liquid Oxygen Mobile Tanker + Vehicle Chassis +
Rs. 1,10,00,000
PESO approval papers
20KL Liquid Nitrogen Mobile Tanker + Vehicle Chassis +
Rs. 1,10,00,000
PESO approval papers
20KL Liquid Argon Mobile Tanker + Vehicle Chassis +
Rs. 1,10,00,000
PESO approval papers
20KL Liquid Co2 Mobile Tanker + Vehicle Chassis +
Rs. 1,20,00,000
PESO approval papers
13 KL Liquid Nitrous Oxide Mobile Tanker + Vehicle
Rs. 80,00,000
Chassis + PESO approval papers
New Industrial and Medical Gas Cylinders – 1000 nos Rs. 1,50,00,000
Diesel Generator of 84 KVA Rs. 12,00,000
Automated Cylinder Testing Shop Rs. 45,00,000
Gas Purity Checking Lab and R&D station Rs. 25,00,000
Supply and Transportation Vehicles - 10 nos Rs. 1,00,00,000
SAP Softwares, Systems, Networking Systems, CCTV
Rs. 50,00,000
Installations and Other Hardware systems.

Total Cost of Machineries Rs. 14,08,60,000/-

7.6 Escalation & Contingencies:

 Increase in price of raw materials such as Liquid Oxygen, Co2, Nitrogen and
Argon are the biggest concern considering the Covid-19 situations. Based on

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 the present market price the cost of raw materials can go high of up to 5% to
8%.
 There may be at least 10% to 15% increase in the cost of construction which
cannot be avoided and also increase in metal prices may in turn affect the cost
of machineries At least by 5% to 8% by time of start of production.
 Escalation in cost price of machineries can be avoided by making advance
amount in prior and by having confirm P.I from the machineries suppliers.

7.7 Preliminary & Pre-operative expenses:

 Preliminary expenses involved in land is explained under “section 7.1” and is
completely taken care by initial investment by partners.
 Initially the pre-operative expenses are mainly involved in paying the
consultant charges for getting the necessary approvals from government
sources as explained in “section 7.2” and is also taken care by partners’ initial
investment.
 Other costs that are involved is in getting architect designs, drawings for
laying foundations, marking boundary, designs for engineered steel building
and initial excavation works.

7.8 Cost of Manpower:

 Initial manpower requirement is calculated based on the production rate
capacity at 40% of overall capacity of the plant i.e., 1920 cylinders x 40% =
768 cylinders (For more details please refer section “6.3 Total Production
Capacity”)

Head Monthly
Manpower Sections Total Cost
Counts Salary
Unskilled Labours 34 15,000 5,10,000
Drivers with valid license 15 20,000 3,00,000
Manager 6 30,000 1,80,000
Accounts & Book keeping 8 20,000 1,60,000
Marketing, Sales & field Work 6 18,000 1,08,000
Machinery Operators & Gas Fillers 8 18,000 1,44,000
Supervisors / Floor Managers 11 25,000 2,75,000
Security Personnel 6 12,000 72,000
House Keeping & Cleaners 4 8,000 32,000
Total 98 Rs. 17,81,000/-

7.9 Working Capital:

 After completion of construction, development and installation of all required
machineries the estimated working capital required for running and starting
productions without any hindrance for 1st annual year would be as follows:

Particulars Cost
Raw material - Liquid Oxygen 15,00,000
Raw material - Liquid Co2 10,00,000
Raw material - Liquid Nitrogen 15,00,000
Raw material – Liquid Argon 12,00,000
Advance amount paid towards sourcing raw 40,00,000
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 materials & other consumables
Salaries of employees (up to 3 months) 54,00,000
Total Rs. 1,46,00,000

8. TOTAL PROJECT COST AND SALES PROJECTION

8.1 Total Cost of Project:

 The following table gives the details of the estimated project cost for our
proposed manufacturing / bottling of gas cylinders and supply of liquid using
Cryogenic Vacuum Insulated Mobile Tankers for industrial and medical gases at
our proposed industrial land.

Land Cost based (Please refer “section 7.1”) 2,00,00,000

Processing Fees and Consultant charges (Please
15,00,000
refer “section 7.2”)
Cost for Land Development, Excavation,
Construction and Engineered Steel Shed (Please 3,50,00,000
refer “section 7.3”)
Plant & Machinery cost (Please refer “section
14,08,60,000
7.4”)
Working Capital (Please refer “section 7.9”) 1,46,00,000

Total Cost of Project Rs. 21,19,60,000/-

8.2 Sales Projection Estimations:

8.2.1 Cost Price Calculation:

 Cost Price of Oxygen, Carbon di-oxide, Nitrogen and Argon is as shown
in the table below.
 The cost price is calculated considering liquid vapour loss charges, liquid
loss during filling and other overhead charges.
 “Total no of Cylinder filling” column in below table gives us the
approximate no. of total quantity of cylinder that can be filled when the
liquid is fully filled in storage tanks.

Liquid Total Cost Price

Raw Rate Cost Price of
Conversion to No. Cyln of Each
Materials per m3 Liquids
Cubic Mts filling Cyln
Liquid 47 KL x 0.77 = = 5170
Oxygen 36,190 cubic mts Rs. 25 Rs. 9,04,750 Cylns* Rs. 175
Liquid 47,000 Kgs x 1 = = 1566
Co2 47,000 Kgs Rs. 10 Rs. 4,70,000 Cylns** Rs. 300
Liquid 33 KL x 0.88 = = 4148
Nitrogen 29040 cubic mts Rs. 35 Rs. 10,16,400 Cylns* Rs. 245
Liquid 27 KL x 0.88 = = 3394
Argon 23760 cubic mts Rs. 70 Rs. 16,63,200 Cylns* Rs. 490
Note:
1. * Oxygen, Nitrogen & Argon each cylinder filling capacity = 7 cubic mts.
2. ** Co2 Filling capacity per cylinder = 25 Kgs.
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 8.2.2 Selling Price Calculation:
 Selling Price of Oxygen, Carbon di-oxide, Nitrogen and Argon is as
shown in the table below:

Type of Gas Selling Price per Cylinder

Cost Per Cyln
Cylinder cubic mts capacity
Oxygen Rs. 35 7 cubic mts Rs. 245
Co2 Rs. 20 30 Kgs Rs. 600
Nitrogen Rs. 50 7 cubic mts Rs. 350
Argon Rs. 140 7 cubic mts Rs. 980

8.3 Sales Estimation:

 As explained under section “6.4. Planned Production for 1st Year” on an
average daily basis the total production of cylinders on daily basis is explained
in the below table.
 Considering those figures net profit on daily basis is as shown in the table below

Gas Cylinders Total Cost Selling Production

Selling Cost Net Profit
Sales per day Nos Price Price Cost
Industrial and
950 175 245 1,66,250 2,32,750 66,500
Medical Oxygen
Co2 gas Cylinders 640 300 600 1,92,000 3,84,000 1,92,000
Nitrogen Cylinders 640 245 350 1,56,800 2,24,000 67,200
Argon Cylinders 640 490 980 3,13,600 6,27,200 3,13,600
Total Estimated 8,28,650 14,67,950 6,39,300

 As explained in the “section 6.4 No. of Working Days Per Annum” average
per annum sales is estimated and is as shown in below table:

Total Production
Production Cost Selling Cost Net Profit
Days
Per Day basis Rs. 8,28,650/- Rs. 14,67,950/- Rs. 6,39,300/-
Per Annum @ 298
Rs. 24,69,37,700/- Rs. 43,74,49,100/- Rs. 19,05,11,400/-
days production

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