Potato Chips Project Report



You can now download Potato Chips Project Report in a short time. It takes many days to research this business and then write the project report for starting potato chips manufacturing business in India. My question is Why spend so much time when we are here? Yes, I mean to say that the business plan is a crucial document that contains all significant details about the set-up. If you are an individual who lacks time and wants to get the project report ready in a short moment. You are on the right page. We can provide you with this project report in a few minutes. Just make the payment and get the download link that gives you access to use our project report. 

Crunchy and crispy potato slices fried in oil and preserved with salt, commonly known as Potato Chips, have excellent business potential. It can be one of the best money-making businesses in the small-scale manufacturing industry. Potato chips are one of the most popular eating snack items in India. And anyone can start a small-scale construction project with small capital investment. Additionally, from the same unit, you can also make French fries and banana wafers. This will increase the overall profitability of your unit. Currently, potato chips are available in various flavors and flavors. The list includes salty, sour, sweet, hot sauce, ketchup, light salty, red hot, etc. Now, let us get deep into some more details about how to make money from the potato chips making business in India.

Potato Chips Business Project Report

The purpose of preparing this project report is to provide a detailed guide on how to start the potato chips manufacturing business. Additionally, the report includes project costs, registration, licensing requirements, machinery, construction processes, raw materials, etc. Potato Chips Making unit project report is a necessary document that will help you get all the necessary licenses, help you set up this factory and avail financial assistance from the banks. You can use it as a map that has all the solutions to your doubts and can resolve your problems in a gist of time.

How to Get Report 

Gone are the days waiting at the door of the expert, as a result, get you Potato Chips Manufacturing sample report in hand, instantly by downloading this report in pdf format. First Step –   Click add to basket then Check Out and Payment Second Step – Immediately after successful payment, you will get a link to download the report. You can download the report immediately from this link.

Potato Chips Market Demand

India is one of the world’s largest potato growing counties. Isn’t it an interesting idea to convert a vegetable into a snack? Of course, it is, and hence, potato chips are quite popular in all age groups. Potato chips are available in different shapes and textures and also in abundant flavours. Although the competition in this field is very high, the demand is higher. Most people find potato chips a suitable snacking item. Also, you can manufacture something different. People are always looking for variety.

Market Potential of Potato Chips Manufacturing Business

As it is known that India is the number one producer of potatoes in the world, it is estimated that around 12.5 million potatoes are solely grown in India, which is 5% of the total potatoes grown in the whole world. There lies a huge demand for potato chips in both rural and urban areas and by all age groups in India. It is one of the instant food options that is loved by all as it lowers hunger instantly. There are no harmful ingredients present in potato chips, so they are a decent snacking option for all. Considering all the direct and indirect factors which will help to grow market demand for potato chips is an ideal thought to start the potato chips making business by spending less capital and from your home. But the problem arises that there is a lack of transportation and storage facilities, and due to certain environmental factors, the potatoes get soiled.

Licenses and Registration of Potato Chips Making Unit

The business of making potato chips is classified as a food production business, so you’ll need to clear up some paperwork before you start making chips.

In starting this business, you have to get many registrations and licenses from the Government.  Rights.  First of all, you need to register the business with the ROC.  However, you can also start a mini plant as a proprietary concern or partnership firm.  Apply for Trade License to Municipal Corporation / Local Authorities and also apply for Udyam Registration.  Also, you have to get permission from FSSAI.

This type of production unit does not demand pollution clearance.  However, it is better to take the NOC from the pollution control board of your place.

You will establish a brand in the market.  Therefore, you can protect the brand name through trademark registration.  Consult a tax advisor about upcoming compliance liabilities.  You will also have to get GST registration.

Best Location for Potato Chips Manufacturing Set Up

Choosing an appropriate location is very crucial. You must choose the location wisely. An ideal location for manufacturing potato chips should fulfil the following criteria:

  • Close to a location where raw material availability is easy.
  • Provision of adequate electricity and water supply.
  • Should have a proper Drainage System.
  • An ideal area requirement will be 1000 sq. ft. approximately.

You will need a location for unit operation. Generally, 800 square feet of space is good enough to start a small-scale unit. However, it depends on the size of the potato business. Additionally, you will need water and electricity supply. Carefully select the location of the potato factory. There are some important aspects to consider before selecting a location for the unit.

Raw Materials Needed to Make Potato Chips

Of course, Potatoes are the key ingredient required for the potato chips making business. But it isn’t as simple as it sounds. You must select good quality potatoes as your main raw material. The quality of the potato chips you manufacture depends on the quality of the potatoes you choose.

Find a genuine raw material supplier who can provide you raw material for a long time, or you can even get the potatoes directly from a farmer. This is important as the raw material should always be readily available to you. The shortage of raw material shall not be present.

Other raw materials that are required are-

Edible oil: Edible oil is used for frying potato slices.

Flavour and spices: Flavours and spices add different tastes to your potato chips. They are used to make appealing chips with a variety of tastes.

Packaging material: Packing is what attracts consumers. Attractive packaging will pull the customers towards the product. Also, it is essential to pack the produced chips in a protective container so that can be stored for longer without getting spoilt.

Salt: Salt is an essential component in any food item. It can add taste to any food item.

Potato Chips Plant Cost

In general, the cost of the potato chips manufacturing project depends on many aspects. These are volume of production, size of the business, etc. However, fixed capital includes plant, building, machinery, and other initial expenses. And working capital costs include raw materials, labor, utilities, etc.
Plant Capacity: 2000 kg per day
Plant and Machinery: Rs 150 Lakh
Working Capital: Rs 100 Lakh
Total Capital Investment: Rs 250 Lakh
Return: 39.21% Breakeven: 40.17%

The actual cost of the project can distract from any assumption changes. You can modify project cost and project capacity according to your requirement.

Machinery Needed for Manufacturing Potato Chips in India

You can start with the potato chips manufacturing unit in two ways: One is by using potato chips making machine. This can be either a fully automatic machine or semi-automatic potato chips making machine. Also, there are some unique potato chips making machines specifically designed for a small business where you can choose them based on your business scale.

Machinery and Equipment for Making Potato Chips

  • Batch fryer
  • Plastic trays
  • Spice / flavoring coating machine
  • Stainless steel working tools
  • Vacuum sealing machine
  • Slicing machine (which has a to adjust slice feature thickness)
  • Weighing scales, dispensers, and fillers
  • A Salting drum containing an inert gas flushing unit
  • Spin dryer / hydro extractor
  • Dewatering machine
  • Washing and peeling machine 

The potatoes are then placed in a drum in which water flows continuously, and with the help of a sharp edge blade, the potatoes are peeled.

Cutting machine: The next step is cutting the potato into slices. Cutting plates are mounted to slice the potatoes as the requirements. This machine does not require very high maintenance. It just needs to be cleaned daily. Also, the cutting machine is made up of stainless steel, which needs to be cleaned and sanitized regularly.

Blanching machine: For slices for a short duration, a blanching machine is used. It also helps to clean dirt and bacteria and also renders a bright colour to potato slices.

Packaging machine: You must also pack the processed chips by using a packaging machine; you can use attractive packets or containers for packaging. The outer label should contain all the necessary details like date of manufacture, date of expiry, best before etc. Also, packaging can be a good marketing tool as well.

Potato Chips Manufacturing Process

Sorting potatoes: When potatoes are bought to the processing plant, they are inspected and sorted thoroughly to keep a quality check for the potatoes. The large oval and disease-free potatoes are selected to make crispy and delicious potato chips. The green edge and potatoes with blemishes are discarded.

Washing and peeling: Keeping hygiene in mind, the selected potatoes are washed in a water spray container where the potato will be cleaned with cold water and sent for peeling. The peeling process takes place using a peeling machine or can be done manually as well.

Slicing: After peeling off the potato, it will be cut into uniform slices depending on the size you want. By using the slicing machine, slices are then immersed in cold water. Potato slices are kept in water with 0.05% potassium Meta bi-sulphate to prevent oxidation or for removing starch.

Blanching: After the slicing process, with the help of a blanching machine, potatoes are blanched for around 4- 5 minutes in boiling water and then they are spread in the tray where the inconsistent/ non-uniform slices are separated from the batch and then the rest of slices are sent for frying.

Drying and frying: With the help of the spin-dryer or hydro extractor, the moisture content of the potato slices are absorbed. After which, the slices are fried using a fryer at a temperature of 1900 degrees Celsius for nearly 5 minutes and then are put in the container for cooling.

Flavouring: Once fried chips are cooled, flavours are sprinkled on the potato chips according to the taste using the salting and flavouring drum.


This is the last but the most important step. The potato chips are safely packed into a container or a plastic pouch using the sealing machine and then finally put into the carton boxes for transportation to the clients and customers.

Marketing Strategy for Selling Potato Chips

Where to sell potato chips?

Local market: You can find your potential customers in a local market. So, start selling the potato chips in a local market that has a high customer base. You can also start selling online. This will help your product to get a better reach.

Wholesale market: You can also sell the potato chips in a wholesale market where you will have to supply in abundance, and consumers will also buy in bulk.

Online market B2B websites: At present, it is mindful of registering your business on leading websites such as India Mart, Alibaba, Exporters India, Trade India, etc., of selling your product in bulk.

B2C websites: Registering your potato chips business on well-known B2C websites such as Amazon, Snapdeal, Flipkart, Big basket, etc., where you can directly get in touch with the potential customer, is a smart idea. These websites are already well established, so people will come to know about your product sooner.

Profit of Making Potato Chips

Commercial potato chips manufacturing is a profitable business. The business ensures a good margin. However, how much profit you will make depends on many internal and external aspects.

Gross Profit = Sales Revenue – Cost of Production

Therefore, if you want to increase the profit margin, you can think about reducing the cost price. Furthermore, this type of item ensures a better margin if you can also increase sales volume. Increasing sales volume also reduces transportation costs, infrastructure costs, and manpower costs.

SWOT Analysis

The potato chips manufacturing business is highly profitable as it remains in demand always. From children to adults, from India to across other nations, everyone is a big fan of potato chips. Moreover, the raw material is also easily available in the market because the potato is easily available in the market. The process of making potato chips is very simple. Potato chips are usually served as appetizers, side dishes, or snacks, so it is demandable. You can invest easily.
For starting the potato chips manufacturing business, you have to do a lot of government registration, which is very hectic and takes a lot of time. The potato chip manufacturing business requires both manmade and machinery capital.
There is a huge market for potato chips, and they can be sold in various retail shops, pawnshops, bus stands, railway stations, roadside eateries, etc. For earning more profit, you can sell potato chips online like Amazon Pantry, Reliance fresh, etc.
To start a potato chips manufacturing business, it isn’t easy to earn a good product image in the market. To make your potato chips manufacturing business name in the market, you have to do a lot of hard work. Sometimes competitors spread false rumors about the quality of the product that you sell.

Content of Banana and Potato Chips Project Report

Sr. No. 



Project at a Glance


Highlights of The Project


General Information and Location


Promoters Background




Project Description


Market Prospect


Technological Process


Process Flow Chart


Quality Control and Standards


Consumables, Power and Utility


Installed Capacity


Basis & Presumptions 


Project Cost Estimates and Means of Finance


Economic Viability and Financial Analysis


Estimated Cost of The Project


Proposed Means of Finance


Working Capital Estimates


Cost and Profitability Estimates


Projected Balance Sheet


Projected Cash Flow Statement


Debt-Service Coverage Ratio


Break-Even Analaysis


Internal Rate of Return


Term Loan Repayment Schedule


Cost of Land and Building


Cost of Plant and Machinery


Depreciation Schedule


Permits and Business Licenses


Important Steps to Start the Project


Tips to Identify Suitable Project Location


A clear Potato Chips Project report is crucial for your success as an entrepreneur. Therefore, you wish to contemplate some important, like your initial costs, your target market, and how long it’ll see you interrupt even. Draft a proper Potato Chips Project Report that describes your expected income, product and repair lines, expansion plans, and other details of your business. A well-drafted project report will also facilitate you in applying for any bank loan.

FAQ On Potato Chips Project Report
How do I start potato chips business in India?

You can easily start a potato chips making business in India by exploring the market to know the best location in your area. You will also have to study the potato chips making project report to get every important detail about this business.

What do you start potato chips making business in India?

You require a well written potato chips project report for this business. This you can get from our website in a gist of time. It contains every significant detail about this startup that can benefit you in making wise decisions. You will also have to arrange space and buy equipments that we have listed in the project report.

Where can I get potato chips making business project report for bank loan pdf?

Well, you can explore the best potato chips making unit project report PDF on our website and take help by checking out all the important details for your new business from it. It will serve you as a guide using which you can write your own project report and submit it to the bank to avail loan for your new venture.

What is the right project report on potato chips manufacturing business for bank loan?

We have clearly stated the right format for this start up in our project report. You can check out the project report details by downloading it after making a nominal payment to us. We have covered every important aspect of this venture in our report.

Can I download potato chips project report pdf in the format of excel or word file?

You can easily download potato chips project report from our website in PDF Format and use it for writing your project report. If you want to get it in word or excel file. It is very simple to later convert the pdf to word or excel using free file converting tools.

Can I download potato chips project report and use it for bank loan under pmegp mudra and other government schem<code>e?

The main objective of potato chips project report is to highlight all important aspects of this business for your new set up and to provide sample format for preparing project reports for other purposes. However, according to your need, we will prepare customized project report for your set up so that you can get loan from the bank under any scheme.

Can I Set Up Potato Chips Unit at Home?

If you want to start on a small scale, you can also start a home-grown business. You can start in your own kitchen, keeping in mind certain protocols like neat cleanliness and proper hygiene. This way, you can save the cost of capital and invest more in packaging and marketing.



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