Banana chips are commonly fried pieces of banana, also known as banana wafers, and are made using raw bananas. And it is a very popular type of snack, they are used by people of every class and every age, economically divided. Although Potato chips are indeed sold and consumed more than banana chips. Despite this, Banana Chips are asked in the market by a particular category and people also like to eat them. Because, It is considered a healthy snack, So the demand for banana chips in the market has also started increasing. However, It is special that no big company has been involved in this business till now. So, starting a Banana chips Making Business plan is a great idea from an entrepreneurial perspective because it is known for generating high revenue. In this article, we cover everything you need to know about starting your own banana chips business!
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Market Potential for Banana Chips
There is a huge market for banana chips because they appeal to health-conscious people and snack lovers due to their fat content and natural sweetness. The demand for banana chips is increasing, especially in metropolitan cities, but also in rural and ordinary communities. They can be easily sold at different retail outlets, supermarkets, grocery stores, bus stations, railway stations, roadside shops and more. The market size of banana chips is estimated at US$ 1.2 billion in 2023 and is projected to reach US$ 1.9 billion by 2031. Additionally, with expanding retail channels, online platforms and speciality food stores, the range of banana chips is expanding, so, starting a banana chips making business it a lucrative opportunity in both domestic and international markets.
Create a Business Plan and Get Training
To start a banana chips making business first create a solid business plan and access financial support. For this, you can consult local business development centres like the District Industrial Center or Small Industries Development Bank of India to develop a solid business plan for the business in India. And also, for hands-on training, you can enroll in courses offered by National Micro, Small and Medium Enterprises or attend food processing workshops offered by state-level agricultural universities. Additionally, platforms like Skill India and Khadi and Village Industries Commission offer specialized training programs in banana chips processing, packaging and marketing.
Raw Material for Banana Chips
The unripe banana is the main raw material and there are several banana varieties that are suitable for chip production. In India, these bananas are grown in states like Kerala, Tamil Nadu, Maharashtra and Karnataka. You can get them directly from local farmers, farmers markets or wholesalers in these regions. Additionally, edible oil, spices, salt and flavours are also required. Also, the packing materials would be printed polyethylene bags and corrugated or cardboard boxes.
Required Space for Banana Chips Making
Starting a banana chips business on a small scale does not require much space, you can start from home with a small room of 100 to 500 square feet and then you can start this banana chips making business in that room. But if you want to start a business with medium to large scale then you need approximately 750 square feet to 1000 square feet of space to set up numerous machines involved in the manufacturing process. Also, the manufacturing unit should be located in an area with adequate electricity and water supply. The location should not be too far from the city as this would make transportation very difficult.
Cost for Banana Chips Making Business
To start this business, you can buy a small chip cutter machine and start from home. If you add other expenses to this, you will have to spend Rs 50,000 Rs 1 lakh. And a medium to large-scale banana chips unit requires an investment of around Rs. 5 to Rs. 15 lakhs and above, including advanced machinery, small factory space and labour costs. Additionally, it is important to consider the costs of packaging, marketing and obtaining licenses to operate the business legally.
Required Licenses and Registrations for Business
Getting the necessary registrations and licenses is very important to start a banana chips making business in India. First, register your business with the ROC. You can register a franchisee for micro and small units. However, LLP and Pvt. Limited options are recommended if you are starting large. Next, obtain a trade license from the Municipal Authority, and register with Udyog Aadhaar MSME this is completely optional. However, it can help you get various government grants and subsidies. Also, apply for GST registration. Next, you must apply for a Food Safety and Standards Authority of India (FSSAI) license, as it’s mandatory for all food-related businesses. finally, depending on your production capacity, you may require a Factory License and Pollution Control Board clearance.
Machines for Banana Chips Making
If you want to start this business at a small level at home, then you can start with just the Banana Chips Cutter Machine. But if you start a Banana chips making Business on a factory setup, the list of some major machinery and equipment is as follows. A Banana washing tank, Peeling Machine, slicing machine, frying machine, Rinsing and spinning machine, flavouring machine, pouch printing machine and Laboratory equipment. These machines, available both online and offline, in online you will find all these machines available on Indiamart.com. You have to go to this website and search for the name of these machines and contact them and buy all these machines after getting proper information.
Making Process of Banana Chips
In the making of banana chips, first, the fresh green bananas are washed in a washing tank to remove dust and dirt. After removing the skin, the banana should be sliced thinly, this work can be done with a slicing machine. After that, the cut chips are placed in the blanching tank, so there is no obstacle to frying the banana. Then, these cut pieces are put in a spinner to reduce the moisture present in them, after doing this process they are placed in a frying machine and removed after they become golden. Next, sent to the flavouring machine where salt and other spices are mixed according to taste. After completing all the steps finally to prevent the change in taste, it can be packed in bags with nitrogen gas and sold in the market to earn money.
Marketing Tips for Business
Effective marketing and branding are essential to make the banana chips business successful. Use social media platforms like Instagram, Facebook and WhatsApp to promote your products and showcase their freshness and health benefits. You can also by going to the shops in your area like various departmental stores, food stores, and self-service counters regarding selling their products. Or set up your own shop and sell banana chips. And also, partner with online delivery platforms like Swiggy or Zomato to reach a wider audience. Finally, running promotions and offering discounts can help attract first-time buyers.
Profit in the Banana Chips Business
The profitability of the banana chip manufacturing business in India can be very lucrative due to the high demand for healthy snacks. For example, if you set up a small-scale banana chips unit and produce about 100 kg of chips per day and sell them at ₹300 per kg, your daily sales can reach ₹30,000. After deducting raw material costs, labour, packaging and overheads, you can see a net profit of ₹4,500 to ₹6,000 per day. So if you work 25 days a month you can comfortably earn more than 1 lakh rupees. But, the profitability of this business varies from business location and sales.
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