Potato Chips Manufacturing Business Plan
Potato chips are one of the most popular ready-to-eat snack items globally. Today everyone likes potato chips, whether small or big, and everyone likes to eat crunchy chips. There are many flavours of potato chips available In the market, some of which include flavours like salty, tangy, chilli, garlic, onion, butter etc. Hence, today the demand for potato chips Is very high. And, many companies are manufacturing potato chips doing business in the market and earning huge profits from their business. So, if you thinking of starting a manufacturing business on a small scale. Then, you can start this potato chip-making business on a small-scale project with a low investment. Starting this business is also very easy. Additionally, you can also make french fries and banana wafers with the same unit. Here in this article, we will guide you on how to start a Potato chips manufacturing business.
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Potato chips are the most popular salty snack item globally. Moreover, its demand is increasing day by day. Potato chips are a thing that is liked by everyone from small children to old people, and they are sold 12 months of the year. The global potato chips market size reached US$ 34.3 Billion in 2023. And, expects the market to reach US$ 43.6 Billion by 2032, exhibiting a growth rate (CAGR) of 2.6% during 2024-2032. Furthermore, the versatility of potato chips in terms of packaging sizes, distribution channels, and marketing strategies provides ample opportunities to target different demographics and expand the business’s reach. So, starting a potato chips manufacturing business presents a favourable landscape for growth and profitability.
To initiate a Potato Chips manufacturing business, the initial investment required can vary based on several factors. If you want to start a potato chip-making business from your home, then you should spend at least 20,000 to 50,000 rupees. or if you want to start a small-scale setup might necessitate an investment ranging from INR 3 lakhs to 10 lakhs, whereas a larger, more automated operation could demand upwards of INR 20 lakhs to 50 lakhs or more. This typically encompasses expenses for machinery and equipment like potato slicers, fryers, packaging machines, a production area, raw material procurement, labour costs, marketing, and regulatory compliances.
Starting a potato chips manufacturing business requires several licenses and permits to ensure legal compliance. The primary licenses include obtaining a Food Safety and Standards Authority of India (FSSAI) license, which ensures adherence to food safety regulations and quality standards. Additionally, acquiring a Trade License from the local municipal authority is necessary. Depending on the scale of operations, one might also need a GST registration for tax purposes. Furthermore, securing a Pollution Control Board (PCB) consent is essential to ensure environmental compliance.
The space required for business can vary based on the scale of operations. If you start this potato chips business from your home, a small room is enough to make and pack potato chips. But, starting with a small-scale production unit might need around 500 to 1000 square feet of space. And, for larger operations aiming for increased production capacity, a space of 2000 square feet or more might be necessary. This space would accommodate machinery like potato peeling and slicing machines, fryers, packaging equipment, storage areas, and an administrative section. Also, adequate ventilation and electricity supply are essential when starting a potato chip manufacturing business.
To kick start a potato chips manufacturing business, several raw materials are essential for production. Primarily, high-quality potatoes of suitable varieties are crucial, and it is found in almost every region of the country throughout the year, additionally, you’ll need vegetable oil for frying, preferably sunflower or palm oil, seasoning ingredients such as salt, pepper, spices, and flavours like barbecue or cheese. Packaging materials like plastic pouches or boxes for storage and transportation are also necessary.
To start a homemade production, basic equipment like a potato peeler, slicer, frying pan or deep fryer, and packaging materials suffice. However, for factory-level production, a more extensive set of machinery is necessary. This includes industrial-grade potato washing and peeling machines, slicers or cutters to ensure uniform chip sizes, large-scale fryers equipped with oil filtration systems, seasoning applicators, packaging machines for Weighing scales, sealing and labelling, and quality control equipment for inspection. These machines can be purchased from online websites like indiamart or alibaba.com, and the website link is given below in the video description.
If you want to start a business making chips from home, you don’t need to do much processing. First of all, take the potato, wash it thoroughly in the hand and remove the skin, then make slices of the potato and dry the water stuck in the potato. Then You can fry this in the way you like Directly in the pan or Electric Machine. After this, let the chips cool for some time and then mix your prepared masala on it. In this way, chips are prepared.
However, if you plan to operate on a large scale with machines, you will need to follow the process. Firstly, the potatoes undergo thorough cleaning to remove dirt and impurities. They are then peeled using automated peelers before being sliced uniformly by slicing machines. These slices are rinsed to eliminate excess starch and then fried in high-quality oil using continuous fryers at precise temperatures. Following frying, the chips are seasoned with various flavours using seasoning machines, ensuring an even distribution. Once seasoned, Finally the chips are cooled, packaged, and sealed by packaging machines, ready to be distributed to the market.
There is a strong need for marketing for this business. Firstly, understanding the local taste preferences is crucial. Next, to in selling potato chips, you need to create a brand identity in the market, only if you advertise yourself, you can create a brand identity, for this, you can put up posters, and banners in many places and advertise in newspapers. You can advertise on various social media which will promote you and increase your sales in a few days. Now you can contact nearby hotels and restaurants, grocery stores and potato chip shops to find out where to sell the product. Also, potato chips can be wholesaled without packaging and sold to wholesalers. Lastly, it is important for chip businesses to clearly label and package their products to ensure proper identification and high-quality presentation.
In this business, more profit depends on your production, how much goods you are making and how much goods you are selling. If you start this business on a small scale and sell them in retail then you can earn a profit of up to 20% and if you sell them to wholesalers in the market then you can earn a profit of up to 15%. To earn more profit, you will have to make more goods and sell them in the market, only then you can earn more profit. Talking about income, if you start this business by investing Rs 3 lakh, you can earn at least Rs 40 to 50 thousand per month.
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