How to Start Potato Chips Manufacturing Business?
We all love to eat snacks, and the first name that clicks on my favorite snacks right now is potato chips. I am sure you too must be liking potato chips a lot. Now just imagine how it would be if the potato chips that enhance your taste also start increasing your income? It is amazing, isn’t it? Then why don’t you think of starting a potato chips manufacturing business, and that is because these potato chips that come in different tastes and flavors are very popular in India, and they have also become one of the most popular snacks in the world. That is, their demand is very high.
Demand for Potato Chips Business
This product is famous among every age group, and the market share of this affordable snack is very high in the food industry. And the good thing is that anyone can start this tasty business on a small scale with a small investment. In such a situation, it will be really good for you to get as much information as possible about starting a potato chips manufacturing business, so that you can understand how this business can be profitable for you, and that is why in today’s article we are going to tell you the most important things related to starting a potato chips manufacturing business, that too step by step, so definitely watch this article completely. So let’s start, and know the major steps to start this business.
Steps required to start Potato Chips Business
1. Prepare a business plan
Even though eating potato chips is very easy, but to start its business you will have to make a little effort. If you are going to start a business on a small scale, then clear all the details accordingly in the business plan, and if you intend to manufacture on a large scale, then prepare a project report or business plan on the basis of your investment capacity, and keep in mind that on the basis of this you can get a bank loan, that is why it is important for it to be perfect. If you want, you can also take the help of an expert in preparing the project report.
2. Estimate the cost of the manufacturing plant
The cost of the plant depends on many factors, including production quantity, business size, but let us tell you that fixed capital includes expenses like plant, building, machinery, and working capital cost includes raw materials, labor, utilities etc. The cost of potato chips manufacturing semi automatic processing plant comes up to ₹ 15 lakh. This investment can be done through your savings, commercial loans from the bank, crowd funding or investors. If you are starting a business on a small scale, then you will have to invest at least 80 thousand to ₹ 1 lakh, and if you want to distribute chips only to selected stores in the local market, then this amount can be 10 thousand or even less.
3. Obtain license and registration
To start this business, you will need several registrations and licenses from the government. You will have to get your business registered with ROC i.e. Registrar of Companies. Apart from this, you will also have to apply for trade license and MSME Udyog Aadhar registration. GST registration, FSSAI certification, IEC code will also be required. You will also have to get NOC from the State Pollution Control Board, and you can also protect your brand name by getting trademark registration.
Potato Chips Manufacturing Process
4. Choose the right location for the manufacturing unit
You will need space for manufacturing unit operation, and 800 square feet of space is enough to start a small scale unit. Rest you can understand this according to your business size, and check that you are getting sufficient electricity and water supply in the factory.
5. Arrange Chips Making Machines
You can start your unit on semi automatic and fully automatic basis, and the basic machinery required is Potato Washing & Peeling Machine, Slicing Machine, Dewatering Machine, Batch Fryer, Spice Coating Machine, Sealing Machine with Inert Gas Flushing Unit, Stainless Steel Working Tools, Weighing Scales, Dispensers, Fillers and Plastic Trays etc.
6. Purchase of raw materials for the unit
The major raw material for potato chips manufacturing unit is potatoes, which must be of good quality. Apart from this, oil, salt, spices, preservatives, added flavors etc. will be required, and you will also need poly pouches and boxes for packaging.
7. Understand the Potato Chips Manufacturing Process
You may not be involved in the potato chip manufacturing process yourself, but still if you understand this process well, it will be easy for you to produce good quality products. Therefore, you must have a basic idea of it, and these are the steps in the potato chips manufacturing process: sorting potatoes, washing and peeling, slicing, blanching, drying and frying, flavoring and packing.
Other important things
8. Set pricing
There is so much competition in the potato chips market that it becomes difficult for a high priced chips packet to survive in the market, especially when it does not have any unique feature. In such a situation, you should take this competition seriously and set the price of your product only after analyzing the price of the competitors present in the market, so that neither you incur a loss nor the price of your chips is so high that your potato chips are unable to survive in the market competition.
9. Marketing is also important
Like every business, potato chips business also needs marketing, you can see this in advertisements, and after seeing them we go to the market to buy new potato chips, so you too will have to market your product to reach more and more people. If you have a small business, you can contact the local distributor to sell chips, and can also promote your chips on online portals. You can list your product on e-commerce websites like Big Basket, Amazon, Grovers, Jio Mart, and if you want, you can also take orders for big companies.
10. Profit Margin
The profit margin of your business will depend on many factors like marketing cost, material sourcing, manufacturing cost. This margin can be from 20 to 30%. That is, if you sell 10 kg potato chips for ₹ 200, then your profit will be ₹ 40 to ₹ 60. If you want to increase the profit margin, then you can think about reducing the cost price. Good margin can be obtained in such food items if the sales volume is increased. By doing this, transport cost, infrastructure cost and work force cost are reduced. Therefore, while planning your business, understand the profit margin well, and according to that, carry forward the pricing and product selling.
So friends, in this way, keeping these 10 steps in mind, you can start your potato chips manufacturing business, and by following the right strategy and business plan, you can make everyone taste your potato chips, but remember one most important thing that do not compromise on quality, and if you liked the article, it encouraged you to think about potato chips manufacturing business, then share it with all your relatives and friends who like potato chips very much and also wish to start their own business with low investment.
