Basically, potato chips are quick to eat snacks items. People belonging to all age groups consume it regularly. As life becomes accelerated, the demand for this type of food article is increasing. Potato chips are well-processed food items resulting in ample value-addition. Chips are crispy, salty, or spicy, and consumers favor fresh quality. Chips are the most well-liked variety of snacks, and they are devoured around the year by people of all the age groups and all income sections.

1. POTATO CHIPS MAKING
&
ITS BUSINESS
www.aatmnirbharsena.org

2. INTRODUCTION
• Basically, potato chips are quick to eat snacks items. People belonging to all age
groups consume it regularly. As life becomes accelerated, the demand for this
type of food article is increasing.
• Potato chips are well-processed food items resulting in ample value-addition.
Chips are crispy, salty, or spicy, and consumers favor fresh quality. Chips are
the most well-liked variety of snacks, and they are devoured around the year by
people of all the age groups and all income sections.
• Potato is an essential crop among the horticultural crops in the North-Eastern
sphere of India. The state of Assam has the maximum area and production
under potato crops within the North East. The most leading productivity of this
crop in the NEH region is in Tripura.
• In India, near about 12 million tonnes of potato is nurtured, which is
approximately 4% of the total world production. However, the per capita
consumption of potatoes is flat. It is determined that 25% of the potatoes,
which are plundered due to certain specific reasons such as transportation,
capacities during harvesting season, packing, availability of cold storage, etc.,
could be saved by making several preserved potato products.
• Potato wafer is one such product that has exceptional potential, as this is
acknowledged as one of India's traditional food. Potato wafers are required to
be made in a scientific manner and under hygienic conditions.
www.aatmnirbharsena.org

3. IMPORTANT INGREDIENTS
• Edible oil
• Salt
• Flavor and spices
• Potato
 Since potato chips come in different flavors, its ingredients depend on the
flavor of chips fabricated. Above is the ingredient for the plain salted chips
quite notable in the market.
FLAVOURS
• Plain salted
• Cheese and onion
• Magic Masala
• Barbecue
• Chilly lime
• Tangy Tomato
• Hot and sweet chili etc.
www.aatmnirbharsena.org

4. MARKET PROSPECT
 The popularity of snacks food is evolving at a flying speed day-by-
day, and potato chips have developed as a potential snack food.
 Several organized and unorganized groups already exist, catering to
the demands of tea stalls, tourist places, restaurants, railway
stations, etc.
 Still, there is an immense demand to be met for these stocks in
interior and remote areas in several parts of the country.
 Market Promotion plays an indispensable role in generating potential
customers; Hence, the application of marketing strategies is
prescribed.
 The proposed project's marketing plan may include good quality
sustenance, a promotional campaign like offering exclusive
discounts, advertisements, referrals, and tying up with buying
houses.
 The product like potato chips has high-grade export potential. Every
year, India exports potato wafers in nations like Oman, UAE, UK,
Australia, Qatar, USA, and Thailand.
 These statistics will help in formulating your own potato chips
manufacturing business model.
www.aatmnirbharsena.org

5. MACHINERY & EQUIPMENTS
 Batch Fryer
 Washing and Peeling Machine
 Dewatering Machine
 Plastic Trays
 Salting Drum With Inert Gas Flushing Unit
 Spice/Flavoring Coating Machine
 Spin Dryer / Hydro Extractor
 Slicing Machine (With Arrangement To Adjust Slice Thickness)
 Vacuum Sealing Machine
 Stainless Steel Working Tools
 Weighing Scales, Dispensers, And Fillers
www.aatmnirbharsena.org

6. MANUFACTURING PROCESS
Potato Chips: The potatoes chosen for wafers should be large oval-shaped,
liberated from diseases, and entirely matured. Damaged potatoes are driven
out for no use. They are rinsed completely in water and uncovered manually
with a stainless steel knife or utilizing a scratchy potato peeling machine.
The peelings are washed away with splashes of water. They are then cropped
and laid in water to check to brown. They are sliced 0.4 to 0.5 cm, edgewise
in a slicing machine. The slices are again put in cold water to cool down a bit
whenever there is a significant delay in the subsequent operations of
blanching. Then slices are stored in water containing 0.05% potassium
metabisulphite to dodge oxidation.
The slices are blanched for around 3 to 5 minutes in boiling water and settled
on trays at 4.88 kg. to 7.30kg. Per square meter of tray surface. The blanched
chips are then constrained to a hydro-extracting machine (centrifugal) to
extract the excess of water and fried inedible oil at 180-240ºC, for 3-4
minutes. The fried potato wafers are then stored on the sieve to expel the
excess of oil, cooled, and other ingredients like salts, the balsamic mixture is
sprayed as per expected taste. Cooled potato chips are then arranged in chips
bags and sealed and are quick to be circulated in the market. The automated
packaging machine will weigh, pack, and load the packet's nitrogen gas, too,
so it will remain crunchy for a longer time.
www.aatmnirbharsena.org

7. C
H
I
P
S
M
A
N
U
F
A
C
T
U
R
I
N
G
S
T
E
P
S
www.aatmnirbharsena.org

8. TECHNICAL ASPECT
QUALITY CONTROL AND STANDARDS:
Product must meet PFA regulations. However, BIS Specifications are as follows:
 IS: 4626: 1978 for Dehydrated Potatoes
 IS: 254:1974 Test for determining preservation
MOTIVE POWER:
20 HP
PRODUCTION CAPACITY (Per Annum):
 Quantity : 120 M. T. Per Annum
 Value : Rs. 108 Lakhs
POLLUTION CONTROL:
The unit will not create any pollution problems. However, entrepreneur should obtain
NOC from concerned authority.
ENERGY CONSERVATION:
Suitable steps should be adopted to use appropriate amount of fuel & electricity
www.aatmnirbharsena.org

9. PROJECT COST ESTIMATES
 Fixed cost:
 Land & Building = Rs 22 lakhs ( You can eliminate the cost by starting in a rental
space)
 Machinery & Equipment = Rs 9.30 lakhs
 Furnitures & Fixtures= 1.70 lakhs
 Pre-operative Expenses = Rs 1 lakh
Total Fixed capital = Rs 34,00,000.
 Working Cost:
 Salary & Wages (per month) = Rs 66,000
 Raw Materials = Rs 5,35,000
 Utilities = Rs 47,000
 Other Contingent Expenses = Rs 23,000
Total working capital for 1month= 6,71,000
For 3 months= 6,71,000 X 3 = Rs. 20,13,000/-
Total capital investment= Fixed + Working capital
= 34,00000+ 20,13,000
=Rs 54,13,000
www.aatmnirbharsena.org

10. FINANCIAL ANALYSIS
Sl. No. Particulars Value (Rs. In Lakhs)
1. Total Recurring Expenditure /Cost 80.52
2. Depreciation on Building @ 5% 0.80
3. Depreciation on machinery and equipment @ 10% 0.85
4. Depreciation on Furniture @ 20% 0.34
5. Interest on Total Capital Investment @ 14% 7.58
Total: - 90.09
Cost of production per annum:
Item Value (Rs. In Lakhs)
Potato Wafers 120 MT @ Rs. 100/- Kg. 120.00
Less -Sales Commission: LS @10% 12.00
Net Sales 108.00
Turnover (per annum):
www.aatmnirbharsena.org

11. NET PROFIT PER ANNUM(BEFORE TAXATION):
Turn Over (-) Cost of Production
= Rs. 17.91 Lakhs
1,08,00,000/- (-) 90.09,000/-
NET PROFIT RATIO PER ANNUM= 18.8%
www.aatmnirbharsena.org

12. BUSINESS LICENSE/REGISTRATION
 After the company establishment, you will need to register MSME Udyog
Aadhaar online. It helps in getting Govt. subsidies.
 Apply for the Trade License from the office of local Municipal authority.
 Apply for the FSSAI license.
 To arrange the ISI mark, you will need to get BIS registration. And in that
case, you need to comply with the quality control obligations.
 Obtain a NOC from the state Pollution Control Board.
 Secure the company brand name by registering the Trademark.
 Finally, receive the GSTIN for the regular tax payment.
 As an Aatmnirbhar Sena, we are doing our best to help the
industrialists, and the entrepreneurs enable them to have easy access
to the registration processes of their company and help them obtain an
FSSAI license without which no food-related business can proceed
further. Acquiring license and permits for the business entities is the
need of the hour, and skating through the radar would only lead the
entrepreneurs to a wide variety of risks, including legal liability and fine.
www.aatmnirbharsena.org

13. FSSAI REGISTRATION
www.aatmnirbharsena.org

14. GOVERNMENT SCHEMES:
 MUDRA Scheme-Under this scheme, the agency was set up to
refinance and develop micro units across the country. It extends
funding to a non-corporate small business sector. It enhances the
functionality of chips related industries.
 Aatmnirbhar Bharat Scheme- Free collateral loans to MSMEs
and other stressed sectors.
 Coir Vikas Yojna- It encourages various activities like skill
development, up-gradation and modernization of industries,
Promoting domestic markets.
 Entrepreneurship and skill development program-
organized to nourish the expertise of youth by enlightening them on
various perspectives of industrial activity needed for setting up small
industries.
www.aatmnirbharsena.org

15. CONCLUSION
 Potato chips industry is massive, and
if you are thinking of starting your
business, then potato chips making
business is the most desirable idea.
The demand for potato chips never
goes downstairs in any period. The
profit margin in potato chips is nearby
30%-40% depending on the raw
materials you are utilizing.
www.aatmnirbharsena.org