Potato Chips Making/Manufacturing Business 

Potato Chips Making/Manufacturing Business 

Hello Friends, 

     Today we will talk about how to start Potato Chips Making business. Potato chips are very popular ready to eat snacks and potato chips manufacturing business can start with low investment. Now you get potato chips of many different tastes and flavours - salty, sour, sweet, hot sauce, ketchup, light salted, red hot, specie etc.

    By Potato Chips Making business, we mean the business of making potato chips. Since Potato chips, chips made from potatoes are very popular due to their taste and utility. So today we will try to know about Potato Chips making business through this article of ours. As for potato chips, it is a widely used food item and mostly used as a snack. Apart from this, the use of this food item i.e. potato chips is used by people almost every month of the year. Therefore it would be completely wrong to call Potato chips making business as a seasonal business.

     If you also want to start potato chips making business, then you are in the right place. we will tell you the whole about the potato chips making machine, equipment, set up, process, details.

     Although we have explained its meaning in the opening sentence of this article, to understand it in a little detail, we have to understand that potato is a vegetable, which is easily available in every region throughout the year. It is meant to say that just as potato is famous in vegetables, potato chips are also most popular in snack items. Yes, it is a different subject that some people prepare potato chips at home for their breakfast. But in spite of this, Potato Chips have been sold in the market in the highest quantity compared to other chips, or say its availability and demand always in the markets. If there is trust, there will be no exaggeration.

Potato Chips Making/Manufacturing Business - Small Homemade Business Idea

    India and China are the largest producer of potatoes. It is not only used in preparing various vegetables as a daily meal, but potatoes are also increasingly used as chips or wafers as snack food. Potato chips and wafers are extremely popular foods.

     The main consumers of potato chips and wafers are particularly rural and semi-urban households. Branded chips and snacks have become a part of the daily diet for rural and urban children.

Potato Chips Snacks

    Potato chips are a typical nibble nourishment thing. Each house is used by hotels, restaurants, canteens and other areas. Currently many large and small industries are employed in the manufacture of potato chips. Undoubtedly the potato chips industry has become the leader in agro-based industry.

Homemade Chips Making (manufacturing) Business Plan

   Chips are very much used as breakfast. It is liked among all age groups. Along these lines, numerous sorts of organizations are working together by making chips. Many big companies are making a lot of profit from its business. Chips can be traded in the market with the help of different types of potatoes. Therefore, a long-lasting business can be done through making simple chips at home and selling.

Market Research

   The global potato chips market size was more than US $ 41 billion in 2019. It is growing at a estimated rate of 3.5% during 2020-2025. Potato chips are one of the most mainstream nibble nourishment eaten around the world.

Potato Chips in Grocery Stores

   

    Demand for potato chips has been increasing continuously, due to its uniform usage in various parts of the country and commonly used in hotels, restaurants, parties etc.

   Changing lifestyles and long working hours have reduced consumers eating habits. This is an important factor driving the global potato chips market.

Investment

    Potato chips industry is increasing day by day and industry costs are less and profits are higher. This industry also provides employment to many people and the government is also providing many ways to promote industries. The cost in this industry ranges from Rs 2.5 -10 lakhs in INR or may be approx $20000 to $50000 in USD. In this industry, potato raw material is easily procured from the farmers and can also be purchased from the local market. 

    Potato is one of the most used vegetables in every country. Go to any province of the country, we will definitely get dishes made from potatoes. The same is the case with chips. Potato chips are very popular chips in our country. Chips are also made of many fruits, but their fame is not of the level of potato chips. And sufficient profit can be made by meeting the increasing day to day demand for chips.

Raw Materials, Machinery and Equipments 

Raw Materials Required for Manufacturing of Potato chips

Following is the list of some of the major raw materials used in Potato Chips Making business.

• Different types of potatoes such as simple potatoes, sweet potatoes etc.

• Edible oil

• Salt

• Chili Powder

• Different types of spices

• Flavours

• Packaging materials

Required Machinery and Equipment

    As we all know that the main raw material used in Potato chips making business is Potato and it is found in almost every region of the almost every country throughout the year, except Potato as the raw material in Potato Making business, Edible oil, Salt, chili spices and some other preservatives are used.

   Chips making machine can be used to do this business at high speed. If you want to set up this business on a large scale, you may need a larger machine, although this trade can be started with the help of a small machine or a hand slicer. The following machinery and equipment are being used in this business.

Require Machinery & Equipment: -

• Potato washing and peeling machine

• Potato Slicing Machine

• Dehydrating machine

• Batch fryer

• Spice coating machine

• Sealing machine with inert gas flushing unit

• Stainless steel working tools

• Weighing scales, dispensers, and fillers

• Plastic trays

• Chips making utensils

• Bisulphite solution

• Laboratory Equipment

Homemade Chips Making For Small Business

Homemade potato chips frying

   You can likewise begin this business taking things down a notch. You can use ordinary potatoes to do this business on a small scale. You also have to reduce the cost to do business by making simple potato chips. You will get potatoes at market price from any wholesaler's shop.

Potato Chips Manufacturing Process

       The process of making chips is very simple, which anyone can understand and trade by making chips. The process of making chips is being described here.

• First of all you need to buy red or such potatoes from the market, with the help of which you want to establish a business of making chips.                                                                                   
• First the potatoes are trimmed and the rotten fluffy potatoes and more green potatoes are taken apart, failing which a few rotten potatoes spoil the whole lot or batch.                                             
• After this you have to clean all the potatoes.                                                                                    
• You have to clean and separate the peel of the potato. For this, the potato is put in a peeling machine.                                                                                                                                           
• The peeled potatoes are removed from the machine and put in water filled vessel. Otherwise, they become black by being in contact with air.                                                                              
• After this, the peeled potatoes are required to be sliced ​​into slices. If the machine you are using has in place to make slices, you can make slices using it. Otherwise you have to use a hand slicer, you can use the slicing machine by keeping 0.4 to 0.5 mm thick slice.                                
• Immediately after cutting these pieces are blanched in a bucket with a bisulphite solution for a few seconds.                                                                                                                                     
• These slices needs to be washed and dried once again with clean water. After this, keep the sliced ​​potatoes in cold water.                                                                                                            
• These raw chips are then poured into a hydro-extractor machine to remove excess water.            
• When the amount of water is removed, these pieces are forwarded to fry into the Batch Fryer. You can prepare chips by putting sun-dried potatoes in an aluminium vessel and frying them in hot oil.                                                                                                                                              
• These potato slices are fried in the middle heat tank at about 180 ° C till turns golden brown. You need to take care of the oil temperature while frying the chips. Fry them for 3-4 minutes.      
• After this, remove extra oil from potato wafers.                                                                              
• Then cool them.                                                                                                                                
• After that they are headed to the spice coating machine. Add salt and red chili powder and flavours to the fried chips and mix.                                                                                                  
• After that these Potato Chips are packed in different packaging of 25, 50, 100 grams. Finally pack and seal the potato chips in polythene bags.

It is now ready for sale.

Potato Chips Manufacturing Process Flow Chart

Space / Location Required For Unit Setup

     You need 800 Sq Ft of space for full small scale Unit Setup. You also need electricity and water supply.

     If you want to install a machine for this business, you need about 200 square meters of space for machine. You can install this machine at any place in your house. This machine is fully automated. You can use this place from making chips to packaging.

Business Plan & Manufacturing Cost

   You must have a good business plan to start Potato chips making business. According to your investment capacity, you have to make a business plan. Potato Chips Manufacturing Plant Cost depends on the production quantity and business size. But fixed capital consists of building, machinery, and other initial expenses. And working capital cost consists of raw materials, labour, utilities.

   The total cost of this trade ranges from Rs 2,50,000 - Rs 10,00,000 in INR or $20000 - $50000 in USD. If you do not want to go with the machine, then this cost is reduced considerably, but due to the low production, the profit also decreases.

Legal Requirements for Potato Chips Business

 To start Potato Chips Making Business you need some Licensing & Registration.

  Being a food item, registration of business is mandatory. You can register your business under MSME and commercial establishment. In addition, you are required to obtain a trade license. You have to take trade license from local authority. After this, you need to open a bank account and tax identification number on the name of your business entity.  

   You also have to get the license of FSSAI or food safety licence by testing the chips in the food department of the government. Since it is a food-related business, an FSSAI license must be required. You have to acquire No Objection Certificate from Pollution Control Board.

Profit Margin

    One can get good profit from this business. However, the profit depends on the quality of your chips. There are many companies in the market, who often give very small amount of chips even in high price per packet. But even then, due to their right quality, their business is running very smoothly and people are buying it. If you use the machine, then you can get a high profit per month. Ratio of profit and total capital investment is 38%.
   Once the cost is imposed in this industry, which is prolonged. Provides benefits After cutting all expenses in potato chips, there is a saving of equal to the cost, which can easily be earned from break even sales in 3 - 4 months.

Marketing

     Marketing is strictly required for this business. You can give chips made by you in various shops in the city as demo. Apart from this, by taking orders from big companies, you can also make chips for them and earn profit. Many snack shops are available in the every country. If you are making better quality chips then you can give your products in these big shops too. Your product is easily sold at these places.

Branding & Packaging

     Since it is a spicy food, you need to pay special attention to its packaging. You can brand your product as a good name and use it on a chips pack with a specific logo. In this way. Then the chips made by you are also being promoted and sold very easily.

Future Market Potential & Opportunities

Market Demand Increasing

     Presently, wherever you go, whether it is a grocery store or departmental store available on the road or a shopping mall store and super market or any other refreshment outlet, Potato chips are seen almost everywhere. Sales of these types of snack items have increased significantly over the past few years, perhaps mainly because of the current lifestyle of moving people. This is to say that with the passage of time, with the increase and development of traffic facilities. People moving from one city to another has increased. Due to which sales of snack items like Potato Chips have also increased. Therefore, such items can be seen selling mostly in railway stations, bus stations, airports etc. along with the departmental mental stores and super markets. This is to say that due to improvement in the standard of living and availability of resources, the distance of the cities from one another and the habit of people moving out of the house helps in creating opportunities for this Potato Making Business. .

      In this way, you can do this long-lasting business by paying attention to the above things.
   
    You can do Other food related manufacturing business easily along with this business. Read full detailed article below;
  Noodles and Macaroni manufacturing Business 

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