Industry Overview
LPG cylinders are essential pressure vessels used for storing and supplying liquefied petroleum gas for cooking and other applications. The cylinder body is deep drawn in two pieces and welded together to form a compact, leak-resistant unit. Common capacities include 5 Kg., 12 Kg., 14.2 Kg. and 19 Kg., while LPG cylinders for domestic, commercial, industrial and specialized applications are available in a wider range of sizes.
Manufacturing and use of LPG cylinders require compliance with applicable safety and quality requirements, including BIS standardization and explosive licensing. Cylinders carry identification and traceability details such as serial number, tare and gross weight, water capacity, test date, manufacturer identification and year of manufacture. Their diameter and gross weight are important considerations for filling plants, conveyors, pallets and storage systems. The report also covers cylinder construction, materials, valves, manufacturing processes, quality control, testing, surface preparation, painting and related equipment and suppliers. Its global market overview discusses LPG production, consumption, trade, supply and demand, logistics and regional demand, with particular attention to Asia and the Middle East.
Cost Estimation
| Particulars | Value |
|---|---|
| Plant Capacity | 1800 Nos/Day |
| Land & Building (3000 sq.mt.) | Rs. 2.04 Cr. |
| Plant & Machinery | Rs. 7.87 Cr. |
| Working Capital for 2 Months | Rs. 12.54 Cr. |
| Total Capital Investment | Rs. 22.88 Cr. |
| Rate of Return | 64% |
| Break Even Point | 35% |
Content Index
- INTRODUCTION
- SIZES OF LPG CYLINDER
- CONSTRUCTION OF LPG CYLINDER
- 1. BODY
- 2. BUNG
- 3. SHROUD
- 4. FOOT RING
- 5. VALVES
- (A) SELF-CLOSING, CLIP-ON VALVE
- (B) HAND WHEEL OPERATED VALVE
- USES AND APPLICATION
- B.I.S. SPECIFICATION
- QUALITY STANDARD:
- PROCESS FLOW CHART
- MANUFACTURING PROCESS
- MATERIAL
- (A) FOR PRESSURE PARTS
- (B) NON-PRESSURE PARTS
- GENERAL
- THE MAIN STEPS ARE GIVEN BELOW
- QUALITY CONTROL
- (A) MATERIAL SPECIFICATIONS:
- (B) WELDING SPECIFICATION
- (C) MANUFACTURING PROCESS SPECIFICATION
- (A) CYLINDER BODY
- (B) VALVE PROTECTION RING-STAY PLATE ASSEMBLY
- (C) FOOTRING
- (D) HEAT TREATMENT
- (E) SURFACE PREPARATION & PAINTING:
- (F) TESTING:
- (G) SCREEN PRINTING/STENCILLING:
- (H) STAMPINGS & PUNCHING:
- 1. STAMPING ON BUNG:
- 2. STAMPING ON THE STAY PLATES:
- (I) VALVE FIXING:
- (J) WEIGHMENT OF CYLINDER:
- (K) PACKING:
- GLOBAL MARKET OVERVIEW
- LPG PRODUCTION GROWTH IS STRONG IN THE US AND CANADA, BUT OTHER REGIONS ARE ALSO GROWING QUICKLY
- THE US MUST EXPORT LPG BECAUSE DOMESTIC DEMAND CAN’T KEEP UP WITH SHALE-BASED PRODUCTION – EVEN AT LOWER OIL PRICES
- THE US WILL REMAIN THE WORLD’S LARGEST LPG EXPORTING COUNTRY
- GLOBAL LPG DEMAND GROWTH WILL CONTINUE TO BE LED BY ASIA AND THE MIDDLE EAST
- RESIDENTIAL/COMMERCIAL LPG DEMAND IS GROWING STEADILY BUT CHEMICALS DEMAND IS GROWING FASTER
- WITH LATIN AMERICA SATURATED AND EUROPE VERY COMPETITIVE, MOST INCREMENTAL US EXPORTS WILL NEED TO MOVE TO ASIA
- LPG IS A SUPPLY-DRIVEN MARKET. SOME SUPPLY FORECAST UNCERTAINTIES:
- REFINING
- ASSOCIATED GAS
- NON-ASSOCIATED GAS
- BIO-LPG
- THE LPG MARKET MUST (EVENTUALLY) CLEAR. SOME DEMAND FORECAST UNCERTAINTIES:
- RESIDENTIAL / COMMERCIAL
- CHEMICALS
- AUTOGAS
- INDUSTRIAL
- OTHER THINGS THAT KEEP LPG RESEARCHERS UP AT NIGHT…
- WATERBORNE LOGISTICS
- GEOPOLITICS
- SUPPLY DISTANT FROM DEMAND CENTERS
- DISRUPTIVE TECHNOLOGIES
- CRUDE OIL PRICES: A MODEST GLOBAL OIL PRODUCTION DEFICIT WILL SUPPORT A GRADUAL, BUT RISING PRICE TREND IN 2017-18
- CRUDE OIL SUPPLY DISRUPTIONS: GLOBAL SPARE CAPACITY IS NOW AT ABOUT ONE THIRD OF ITS 2010 LEVEL
- “HIGH-GRADING”: US PROPANE PRODUCTION HAS GENERALLY BEEN FOLLOWING CRUDE OIL PRODUCTION WITH AN INFLUENCE BY NATURAL GAS – UNTIL RECENTLY…
- PERMIAN PRODUCTION: WITH HIGHER RESERVES AND PRODUCTIVITY, HAVE WE UNDERESTIMATED THE PRODUCTION FORECAST?
- GLOBAL LPG DEMAND: WILL ASIAN DEMAND BE STRONG ENOUGH TO CONSUME THE GLOBAL LPG SURPLUS?
- DEMAND COMPETITION: WILL A GLUT OF LNG DISPLACE LPG DEMAND IN KEY COUNTRIES?
- US LPG EXPORT CAPACITY: CAPACITY COULD BE TIGHT AGAIN IN THE 20’S UNLESS THERE IS FURTHER EXPANSION
- THE VLGC FLEET: CURRENTLY OVERSUPPLIED, BUT HOW DOES MARPOL IMPACT THE FLEET?
- LARGEST WORLD PRODUCERS
- USA HAS BECOME ON OF THE LARGEST EXPORTERS OF LPG IN THE WORLD.
- LARGEST WORLD CONSUMERS
- ASIAN CONSUMERS REPRESENT THE BIGGEST SHARE OF THE GLOBAL DEMAND.
- WORLD CONSUMERS BY SECTOR – 2015
- LPG FINAL CONSUMPTION BY SECTOR
- RESIDENTIAL SECTOR IS THE LARGEST COMPONENT OF THE GLOBAL DEMAND. ADDITIONALLY, CHEMICAL INDUSTRY IS GETTING MORE RELEVANT.
- LARGEST WORLD EXPORTERS AND IMPORTERS
- USA LPG SURPLUS GOES MAINLY TO THE ASIAN MARKET.
- PLANT LAYOUT
- MANUFACTUERS/SUPPLIERS OF LPG CYLINDER
- SUPPLIERS OF RAW MATERIALS
- SUPPLIERS OF M.S. SHEETS
- SUPPLIERS OF LPG CYLINDER VALVE
- SUPPLIERS OF BUNG
- SUPPLIERS OF SHROUD AND FOOT RING
- SUPPLIERS OF MIG WELDING WIRE ELECTRODE
- SUPPLIERS OF POWDER COATING PAINT
- SUPPLIERS OF PLANT AND MACHINERY
- SUPPLIERS OF SHEARING MACHINE
- SUPPLIERS OF DEEP DRAWING PRESS
- SUPPLIERS OF CIRCLE CUTTING MACHINE
- SUPPLIERS OF POWER PRESS
- SUPPLIERS OF TRIMMING MACHINE
- SUPPLIERS OF MIG WELDING MACHINE
- SUPPLIERS OF HEATREATMENT FURNACE
- SUPPLIERS OF SAND BLASTING MACHINE
- SUPPLIERS OF BENCH GRINDER
- SUPPLIERS OF DRILLING MACHINE
- SUPPLIERS OF LPG CYLINDER TESTING MACHINE
- SUPPLIERS OF METAL TESTING MACHINE
- SUPPLIERS OF PRECISION MEASURING TOOLS
- SUPPLIERS OF DG SETS
- SUPPLIERS OF POWER TRANSFORMERS
- SUPPLIERS OF AIR COMPRESSORS
- SUPPLIERS OF PLATFORM WEIGHING MACHINE
- SUPPLIERS OF POWDER COATING MACHINE
- SUPPLIERS OF HOT DIP GALVANISING PLANT
- SUPPLIERS OF MATERIAL HANDLING EQUIPMENTS
- SUPPLIERS OF PAINTING EQUIPMENTS
Appendix
- 01. PLANT ECONOMICS
- 02. LAND & BUILDING
- 03. PLANT AND MACHINERY
- 04. OTHER FIXED ASSESTS
- 05. FIXED CAPITAL
- 06. RAW MATERIAL
- 07. SALARY AND WAGES
- 08. UTILITIES AND OVERHEADS
- 09. TOTAL WORKING CAPITAL
- 10. TOTAL CAPITAL INVESTMENT
- 11. COST OF PRODUCTION
- 12. TURN OVER/ANNUM
- 13. BREAK EVEN POINT
- 14. RESOURCES FOR FINANCE
- 15. INSTALMENT PAYABLE IN 5 YEARS
- 16. DEPRECIATION CHART FOR 5 YEARS
- 17. PROFIT ANALYSIS FOR 5 YEARS
- 18. PROJECTED BALANCE SHEET FOR (5 YEARS)
Frequently Asked Questions
An LPG cylinder is a pressure vessel designed to store and supply liquefied petroleum gas safely. The report describes cylinders as being manufactured by deep drawing the body in two pieces and welding them together to create a compact, leak-resistant unit. LPG cylinders incorporate components such as the body, bung, shroud, foot ring and valve. Identification and traceability information is also provided through markings such as serial number, weight, water capacity, test details, manufacturer identification and year of manufacture.
LPG cylinders are manufactured in different capacities according to their intended application. The report identifies 5 Kg., 12 Kg., 14.2 Kg. and 19 Kg. cylinders and also discusses broader capacity ranges for domestic, commercial, industrial and specialized uses. Smaller cylinders can be used for camping and entry-level applications, while larger cylinders are commonly associated with commercial and industrial requirements. Cylinder diameter is also important because it affects filling-plant conveyors, pallets, racks and other handling and storage arrangements.
The main LPG cylinder components include the body, bung, shroud, foot ring and valve. The cylinder body forms the pressure-containing vessel, while the bung provides the valve connection. The shroud and foot ring contribute to protection, handling and stability. The report also covers self-closing clip-on valves and hand wheel operated valves. Proper selection, fabrication, welding, assembly and testing of these components are important for achieving the required safety and performance characteristics of the finished cylinder.
Quality control in LPG cylinder manufacturing covers materials, welding, forming, heat treatment, surface preparation, painting, testing and final assembly. The report specifically addresses material specifications, welding specifications and manufacturing process specifications, followed by inspection of the cylinder body, valve protection assembly and foot ring. Testing, stamping, valve fixing and weighment are also included as manufacturing-control activities. Compliance with applicable BIS requirements and other relevant safety regulations is an important part of establishing product quality and safe operation.
LPG cylinder manufacturing generally involves forming the pressure vessel components, welding, heat treatment, surface preparation, painting, testing and assembly. The report specifically describes deep drawing of the cylinder body, welding of the formed sections, fabrication of the valve protection and foot-ring assemblies, heat treatment, surface preparation and painting. Subsequent operations include testing, screen printing or stencilling, stamping and punching, valve fixing, cylinder weighment and packing. The precise sequence and specifications depend on the applicable manufacturing and quality requirements.
Cylinder diameter is important because it directly affects material handling and storage arrangements within an LPG filling facility. The report notes that diameter has implications for conveyor dimensions as well as the pallets and racks used for storage. Designing equipment around the selected cylinder dimensions helps maintain suitable movement, positioning and handling throughout the filling and storage operations. Gross weight is another important consideration, particularly for domestic applications where cylinders may need to be manually handled.
An LPG cylinder manufacturing plant requires equipment covering forming, cutting, welding, heat treatment, finishing, testing and material handling operations. The report lists equipment such as shearing machines, deep drawing presses, circle cutting machines, power presses, trimming machines, MIG welding machines, heat-treatment furnaces, sand blasting machines and LPG cylinder testing machines. It also includes supporting equipment such as metal testing machines, precision measuring tools, DG sets, power transformers, air compressors, weighing machines, powder coating machines and material handling equipment.
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