PROJECT REPORT OF POTATO CHIPS- TINY UNIT

Manufacturing Potato chips - Rural Industry (Tiny Unity)

Chips are the most popular variety of snacks on various occasions. Besides being salty,

spicy or flavored, consumer preference is always for fresh quality. Potato and banana chips

are popular processed food items resulting in substantial value-addition.

Potato Powder is one of the oldest commercially processed vegetable products. It is very widely used in the baking industry all over Europe, USA, far Eastern countries and Middle East, although its growth has not kept pace with other processed products of potato. In India it is used in baking industry and as a thickening agent in the soups.

Chips are the most commonly consumed first generation snack foods. They are used as snack food both in domestic as well as in fast food centres and restaurants as side dish and garnishers. Moreover, the product can be safely stored for upto six months without any change in quality.

Market Opportunities

There exists a very large market for chips and they can be sold at various retail outlets, paan

shops, bus-stands, railway stations, roadside eateries, etc. There also exists institutional

market consisting of clubs and other institutions, school & college canteens, army

establishments, bars & pubs, railway and airlines caterers, etc.

Competition from organised sector is increasing but local and small units have distinct

advantages in terms of less overheads and transportation costs, longer shelf life, quick

access to market and cost.

Technical Details:

The manufacturing process using potato powder is briefly summarized below:

- Potato powder of suitable fineness is mixed with various ingredients,

- This powder is cooked and extruded into sheet.

- Products are sheeted, rotary cut and fried.

- Uniform size shapes are die-cut from extruded sheet where low pressure extrusion provides a variety of shape with consistent density and continuous operation.

- Controlled temperature continuous frying is done to get uniform quality and golden yellow

appearance with consistent Crispy taste.

- Automatic packaging in Nitrogen filled moisture proof boxes or in colorful Multilayer Plastic film Pouches for longer shelf life.

- Packing of Pouches and boxes in Cartons for Marketing.

Another technique used for production of fabricated potato chips is thru using farm fresh potatoes, the process of which is briefly summarized below:

- As per the company norms the potatoes bought from farm are made to pass thru a quality test.

- The potatoes are then passed thru a conveyor where they are de-stoned and then peeled.

- The peeled potatoes are then washed with cold water.

- A slicer then cuts the potatoes into thin slices. The slices are again washed in cold water in order to purge any released starch content.

- The slices are then passed thru a chemical solution in order to augment its colour if required.

- The slices are then fried and salted, and passed through a conveyor belt so as to drain excess oil.The chips are then cooled and sorted.

The figure below shows the whole process in sequence.

Chips: Harvesting => Receiving => Washing => Peeling (manual) => Slicing => Removal of excess water => Frying => Mixing of salt and spices => Cooling => Packaging => Transport => Marketing

It is very well established and simple. It involves visual inspection and sorting of damaged potatoes and bananas and washing them in water. Then they are peeled and trimmed before slicing or cutting them to the required size. Then they are once again washed and dried. They are then fried and either salt or other spices/flavours are mixed homogeneously. After cooling them, they are packed in pouches or plastic bags

Varieties of Potato suitable for chips -

Kufri Chipsona - 1, Kufri Chipsona - 2, Kufri Jyoti and Kufri Chandramukhi.

1 Name of the Product :                                     Potato Chips/Wafers

2 Project Cost :

a Capital Expenditure

Land : Own

Building Shed 500 Sq.ft :                                      Rs. 100000.00

Equipment :                                                         Rs. 150000.00

(Boiler,Steam Jacketted Kettle, Potato Peeling

Machine, Pouch Sealing Machine, Frying Pan)

Total Capital Expenditure                                       Rs. 250000.00

b Working Capital                                                Rs. 88500.00

TOTAL PROJECT COST :                                     Rs. 338500.00

3 Estimated Annual Production of Potato Chips/Wafers :                                         

Potato Chips / Wafers 118 Quintal@ Rs. 3000.00     Rs. 354000.00

4 Raw Material:                                                        Rs. 100000.00

5 Lables and Packing Material :                                Rs. 50000.00

6 Wages (Skilled & Unskilled) :                                 Rs. 42000.00

7 Salaries :                                                             Rs. 60000.00

8 Administrative Expenses :                                     Rs. 20000.00

9 Overheads :                                                         Rs. 30000.00

10 Miscellaneous Expenses :                                   Rs. 5000.00

11 Depreciation :                                                    Rs. 20000.00

12 Insurance :                                                        Rs. 2500.00

13 Working Capital Requirement :

Fixed Cost                                                            Rs. 120000.00

Variable Cost                                                       Rs. 233505.00

Requirement of WC per Cycle                               Rs. 88376.00

Note: Project cost is subject to location and  Production Process.

Name of the Machine Manufacturer:

SSP Limited

Address: l9-DLF Industial Area, Phase-II, l3l4-Mathura Road

Faridabad, Haryana-l2l 003 (INDIA)

Phone : +(9 1 )-( I 29) -227 5441 /227 7 7 30

Fax: +(9 I )- (129)-2s27 7 44 |

Email : info@sspindia.com

Hovert Impex Pvt.Ltd.

3704[E, P-hase IV, G.I.D.C., Vatva,

Ahmedabad - 382 445. India

Phone : 9I-79-5840127,

Bajaj Machinery Pvt. Ltd.

C-582, New Friends Colony

Phone: (9 1- I 1) 217 ll5l, 226 5326

Chhatariya Food Pvt Ltd

Mahuva,BhavNagar Gujarat

Phone: 02844-2238

Archana Machinery Stores,

Guwahati

East End Engineering Company

173/1, Gopalrai Thakur Road,

Kolkata 700035.

Tel. No. 25773416/6324