Potato Chips Project Report



You can immediate download the Potato Chips Manufacturing sample project report format template, in MS excel or word / pdf format.

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.

Now, let us get deep into some more details about how to make money from the potato chips making business in India.

How to Download Potato Chips Sample Project Report 

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Potato chips making business- high in profits?

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.

High Market potential of potato chips making 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.

Registration and license- key requirements for potato chips factory

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.

Location required for potato chips making 

Choosing an appropriate location is very crucial. You must choose the location wisely. An ideal location for potato manufacturing 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.

Start from your 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.

Raw materials required for potato chips business

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 is 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.

Machinery used for potato chips manufacturing

You can start with the potato chips manufacturing unit in two ways: One is either 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.

Essential machinery required for potato chips manufacturing

  • 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.

The making process of potato chips

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.

The Marketing Strategy!

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.

Brand and uniqueness

Branding is an integral part of the business. Since there are several potato chip manufacturers in India and some of the brands are quite popular, your product must be unique. You ought to be innovative to stand out in the market. You can introduce new favours that have never been introduced earlier or use any other strategy so that your brand is easily recognised. While applying to any marketing facility, you must study the competitors, their products and their marketing techniques.

You can even get in touch with some program organizers and attend some party or other social events for the promotion of your potato chips; you can even offer them sample packets for taste. Apart from all conventional ways of promotion, online promotion is a very effective way to popularise your brand. You have a great scope in starting your own online shop for online booking via your website or by calls.

Key Points Cover in Sample Project Report on Potato Chips Manufacturing 

Table of Contents

  • Table of Contents
  • Project at a Glance
  • Introduction
  • Objective
  • Promoters and Management
  • Background
  • Market Demand Potential
  • Location of the Project
  • Projected Balance Sheet
  • Projected Profitability Statement
  • Debt Service Coverage Ratio
  • Break Even Analysis
  • Depreciation Chart
  • Plant & Machinery
  • Term Loan Repayment Schedule
  • Ratio Analysis & Assumptions
  • Expenses Detail
  • SWOT
  • Conclusion & Recommendations

Apart from this, all the information is being provided. To help in preparing project reports.

Sample Project Report Format

In our project report format, we cover technology details, its diagrams, flow chart etc. as and when required or deemed fit to include. Also, prepare in-depth financial calculations which is necessary for the Investor/bank.

You will get the  report data Potato Chips  Manufacturing in PDF or MS word. Which you can use easily. You can also modify the information according to your need. You will be able to access the data easily according to the your requirement. Additionally you can easily convert the data to PDF format.

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