How to Start Potato Chips Manufacturing Business: 22 Pros & Cons of Starting a Potato Chips Production Business!

Potato Chips Manufacturing Business Investment Profit – Startup Business Idea!

Potato chips manufacturing business plan: Do you want to start a potato chip manufacturing business in the best way with adequate training and easy and low investment? And what kind of items (machine, equipment) should be purchased for this potato chips manufacturing business of yours? And what kind of things to do (set up, process)? If you have any doubts about this then keep reading this post and here you will get a clear explanation of these.

A variety of ready-to-eat snack items can be found all over the world. However, it is worth noting that these potato chips are one of the first and most popular among them. And you can build this potato chips manufacturing business very well with a small capital investment (on a small scale).

Let’s say you are now manufacturing and selling chips using potatoes! If perhaps 50% to 75% of your produced potato chips are left unsold, you should not make the wrong decision to stop your business operations.

Even if this kind of business disruption occurs in your company operations, you should know how to deal with it wisely! What can be done? I don’t see it anyway! If you want to follow these methods in your business activities, you will get good results.

When your potato chip manufacturing business has a business crisis, can you improve your business by using your raw product, potatoes, to produce other products and provide them to customers? Think like this – this will ensure that your business, small or large, is always active and has cash flow. With potatoes as raw material, you can make potato chips, potato french fries, and banana wafers! The most important thing here is to know that you can make even more varieties of these if you can and these are sold globally at good prices in all markets.

There are many types of tastes and flavors that attract people easily to the current potato chips. To be specific, all kinds of tastes and flavors like salty, sour, sweet, hot sauce, ketchup, lightly salted, and red hot are available in this potato. And you can implement these flavors in your business production too – which will eventually transform your business into a profitable business.

We have seen it briefly but there is no doubt that this potato chips manufacturing business is 99% suitable business for entrepreneurs who are just starting a business and have a low cash ratio of business investments! If you are one of these ranks then on behalf of our blog we wish you the biggest and warmest wishes for you to start your new business.

Well, now let’s see clearly what this post has to do with this potato chip manufacturing business! As much as possible we have recorded in this post all the information related to the potato chips manufacturing business – ie how much advance cash you need to keep in hand for this business, what you need to do to get registration & license for your business, and “machinery, manufacturing process, and raw materials”. We have clearly explained in this post what you need to do to implement everything in the best way.

So there is no doubt that any person who is thinking of starting a new potato chip manufacturing business will get a good knowledge of this business by reading this post!

Here are the 11 Steps to Start Potato Chips Manufacturing Business!

Potato chips manufacturing business plan

Potato chips manufacturing business plan!

Common knowledge related to this business: You should know that people living in urban and semi-urban areas are fond of eating potato chips and wafers.

In general, the demand for Potato Chips is increasing significantly in hotels, restaurants, canteens, and army establishments. The range also fully covers urban areas and places that want to move from rural to urban areas – ie the number of people buying and eating Potato Chips in the survey.

This record will be very helpful for you to start a potato chip manufacturing business in the best way but if you need to reduce your business miscellaneous expenses it is in your hands and operations. Most people who start potato chip manufacturing businesses near potato growing areas see good profit in their business because they don’t have to import and export the most important cost of production!

How to Start Potato Chips Manufacturing Business?

A) Before starting the potato chip manufacturing business, first research the market and job opportunities (in your locality) for this business.

We all know that potato chips are one of the world’s most popular salty snack foods, but we can confirm with some statistics that the demand is increasing day by day!

According to studies, the market demand for potato chips is expected to grow at a CAGR of 4.3% during the period 2017-2022 and the market value will touch USD 40.3 billion in 2022 (i.e. the current year).

There are many reasons why the potato chip manufacturing business has become so successful in today’s times. Let us have a brief look at them – 1. In today’s generation, people are more inclined towards fast food, 2. Food is easily available within a few minutes and at the same time very cheap charges are charged for it, 3. Major changes in people’s lifestyle – i.e. extravagant spending of money, Let’s go on and on about the wasteful positions of having too much money to spend — these all change people from their nature over time!

This is another major reason why people love potato chips so much! That is, these potato chips are very low in fat and sodium – we can say that this is one of the main reasons why people love these potato chips in a big way.

Pouch pocket sales of potato chips are supported by people all over the world and the major consumers are hotels, restaurants, and caterers. Because they buy these products at a very cheap price and sell them to their customers at a high price and make a good profit.

There are many reputed companies that manufacture potato chips and export them to countries around the world! We are obliged to list some of the best companies in this order – the famous (manufacturing and trading of Potato chips) companies are Lay’s, Pringles, Uncle Chipps, Haldiram’s, Ruffles, Bingo, and Tastilo.

B) Prepare and keep a business plan or master plan statement handy before launching your business for success.

You will need an amount of cash upfront to start your business. In case you don’t have it with you, you approach a bank for that amount to get a “business loan”. Even now it is your business plan that decides whether you will get a bank loan or not! So make sure you create the best project report for your business – and you can turn to a few experts for this.

Usually, project statements or business plans are designed with a focus on the machinery and financial position of your business.

C) Potato Chips Manufacturing Plant Cost.

The costs you incur in this business are determined based on the products you produce and the size of your company. If we want to say more clearly, the space you need to do business, the cost of setting up a plant, the cost of purchasing production materials, the cost of paying wages to employees, the cost of purchasing basic utilities for production, the cost of purchasing machinery and other basic production materials. Let’s go – keep all these in mind and decide how much it will cost you to run your business.

D) If you want to do business by manufacturing Potato Chips! You will need to obtain appropriate approvals from your country’s government (license available through registration).

First, you need to register your new business with ROC for a business license. Then get all the licenses like Trade License, MSME Udyog Aadhaar, and FSSAI has done properly. With these activities, you can run a small-scale potato chip manufacturing business without any government hurdles.

Potato chips manufacturing business plan!

Don’t forget that you are yet to get permission from the Pollution Control Board for your business! Because your commercial production may affect the general natural conditions. No government will accept your actions without allowing them to do so. So be sure to get all the permits you need to get from the Pollution Control Board to run your business and keep them handy. This way you can protect your business from future problems.

Next, try trademark registration for your business. This way you will clearly show everyone that you too are a top brand company in the business market! Also, your brand name will be protected which means your brand name will not be allowed to be used by other business owners.

And you can approach a tax consultant now to deal with future problems that may arise in your business or if not monthly you can be in touch with him once in 3 months. This way you can easily solve your business problems! The tax consultant is always there for you as a consultant for information. Finally, it is advisable to apply for GST-related license registrations for your business.

E) How to set up the Potato Chips Manufacturing Unit in an elegant manner?

A space of 800 square feet is enough for you to start a Potato Chips Manufacturing Business on a small scale. Also if your business is getting bigger then try to make the space systems bigger and your business needs basic essentials like electricity, water, etc.

F) Now let’s talk about the machines that prepare Potato Chips in any size and shape you can think of.

Be very careful while buying potato chips making machines. Because many people are fooled by this – the machine looks good but doesn’t do the job properly! So look for a reliable seller when buying commercial machinery.

Most of the machines you need to run this business are – Potato washing and 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 – and fillers, and Plastic trays, etc.

G) What are the factors to consider while purchasing raw materials for this business?

All you need to start a Potato Chips Manufacturing Business is the whole first ingredient Potatoes! However, how do you prepare Potato Chips with just this?

Ingredients required to run Potato Chips Manufacturing Business in the best way:

Potatoes, oil, salt, spices, and preservatives can go on and on.

Things to consider while buying potatoes for commercial production – Make sure that the potatoes are large oval shapes free of any diseases and mature. Also, make sure that the number of eyes in the potatoes you buy is less so that you can avoid wasting a lot of potatoes.

You can use poly pouches and corrugated boxes to export your commercial products.

H) Here we will see in detail how to prepare Potato Chips in an easy and best way.

Potato chips manufacturing business plan!

First, peel the potatoes. For this, you first wash the potatoes completely free of any mud and dirt. Then use stainless steel knife or abrasive potato peeling machine to remove its skin.

Immerse the peeled potatoes in water to keep them from turning brown. Then take the slicing machine and start cutting your potatoes into 0.4 to 0.5 cm thick slices. Then submerge it in cold water too!

Now sprinkle 0.05% Potassium Metabisulphite into the water in which your production ingredient is submerged! This prevents oxidation in the cut potatoes. Once all the work is done to an extent, you need to soak your potato slices in boiling water for 3 to 5 minutes. Then use the tray surface to dry it and its shape and weight are 4.88 kg. to 7.30 kg. per square meter is

Drain and remove water from your potatoes using a hydro-extracting machine. You need to bake the potato chips you get from this process at 1900°c for 3-4 minutes.

If there are any oily particles in the etched potato chips, remove them using proper mesh filters. Then you can sprinkle salt, spicy mixtures, etc. to create the taste you want (on your product).

Here you can sell your products by filling or sealing them in polythene bags.

I) Quality Specification for Potato Chips.

Make sure the moisture content of your Potato Chips is moderate (2% max). Then use F.F.A oil to place oleic acid (up to 0.1% maximum) on its surface. This oil does not contain even 1% of Peroxide!

This avoids the disadvantages that may occur with Potato Chips. Specifically, all chemical phenomena such as the formation of coliforms, salmonella, and streptococci bacteria are avoided.

Pros & Cons of Starting a Potato Chips Production Business!

Potato chips manufacturing business plan!

Pros of a Potato Chips Production Business:

1. With this business you can fulfill the food requirement of your customers within a few minutes.

 2. Using potatoes you can produce food products in many different shapes and flavors. These activities attract people from all over the world in a big way!

 3. Own Business This is one of the major business sectors that can be started with minimal investments.

 4. There are many industries in this business – its industry types are due to the different flavors available from the product you are going to produce. So you can decide who your customers are and run this business independently.

 5. No one can say for sure how much profit you will get in this business! This means that the more time and effort you put into your business, the better it will earn you.

 6. You can sell your products anywhere in the world! With this, you have more chances to earn than you ever imagined. Because the demand and price of potatoes are very high in areas where potatoes cannot be grown. Is this profitable for your business? And potato is not cultivated anywhere in the world because their yield is not suitable for all seasons.

 7. You can make a permanent income with this business. It is important to note that this income continues to generate good profits for you even while you sleep. This is the dream of many entrepreneurs and online business people! If you have hard work, this two-foot saying is more likely to apply to you.

 8. You don’t need to keep track of your customers all the time in this business like other businesses! So you can use your time to grow your business.

Related: How to Start Ice Cream Manufacturing Business in 8 Easy Steps? Pros & Cons of Starting an Ice Cream Business!

Potato chips manufacturing business plan!

Cons of a Potato Chips Production Business:

1. Many people have started this business nowadays because of the possibility to start a potato chip manufacturing business at home with low investment. So, you can start this business in any place and make a good profit only after doing various business ideas and research and implementing your decisions properly. This way there are more chances to increase your success rate in this business.

 2. Even if your business is making a modest profit every month, you should still be doing all the favors you should be doing to your workers! You can’t tell your employees that I don’t have enough income for all that.

 3. Sometimes this business takes a lot of time to warm up to you. By doing this, you are more likely to suffer from excessive stress. To avoid this you need to implement your business with proper business plans! A proper business plan will prevent unnecessary costs and time delays in the business.

 4. Your rate of return on this business is extremely low! Mostly your rate of return here is 27% to 30%. Because of this, even if you want to innovate in your business, it will take a long time to become effective.

 5. You can’t guarantee that the jobs and earnings you get in one month in this business will be the same for all consecutive months! This way your business income will not have a fixed place.

 6. No matter what kind of employees you run this business with, there will be times when you feel like you’re just going to work on your business. Insurance is critical to the business – you may need a modest upfront payment to book it. Also, know that the self-employment taxes you have to pay are quite high.

 7. You’re not going to have to do anything major in this business, namely, prepare the Potato Chips! Although this is a simple process, the customers who buy your product expect a lot of quality and taste from you, so do not forget that if you fall short in this, your business will fail.

 8. If you have exported your product to the world, you have to pay sales tax on it!

 9. This business is fully computerized so it is highly suitable for those who want to invest in physical labor! It is 98% suitable for people who want to earn money while sitting.

 10. This business success requires you to commit yourself to this business 24 hours a day, seven days a week.

 11. Commercial production machines are more prone to repair over time. It is a common practice in this business that this also comes at a cost to you.

 12. Big companies will only contact your business over the phone and at those times you have to answer those calls or you will miss out on big business opportunities.

 13. Don’t think that you can take a good profit from this business in one day or one month or one year! This will put you in big financial trouble. Because no one can say for sure when this business of yours will succeed – it all depends on the hard work of your team.

 14. If there is a problem with machinery or computer operations you will have to fix it yourself or you will have to pay an outsider to do the work (to fix the problem) – this will cost you big no doubt!

How to Start Potato Chips Manufacturing Business? – Machine, Profit Margin: Pros & Cons of Starting a Potato Chips Production Business!

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