PROJECT REPORT HOW TO ESTABLISH POTATO CHIPS UNIT IN RURAL AREA

KHADI & GRAMODYOG ROJGAR YOJNA PROJECT REPORT-
How to establish POTATO CHIPS/WAFER MANUFACTURING UNIT

Potato and Banana are the common vegetables used by the people in the country in
their daily life. The vegetables have its nutritive value. The wafers made out of potatoes
and bananas are considered as a delicious and tasteful and these items have secured a
considerable maket demand in India as well abroad.

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 : (Value in ‘000)

 Potato Chips / Wafers--- 118 Q @ Rs 3000.0/Qut total Rs  354.00

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 Interest (As per the PLR)
a. C.E.Loan : Rs. 32500.00
b. W.C.Loan : Rs. 11505.00
Total Interest Rs. 44005.00

14 Working Capital Requirement :
Fixed Cost Rs. 120000.00
Variable Cost Rs. 233505.00
Requirement of WC per Cycle Rs. 88376.00

15 Estimated Cost Analysis
 Sr. Particulars Capacity Utilization(Rs in ‘000)

1 Fixed Cost                     120.50
2 Variable Cost                 234.00
3 Cost of Production         354.00
4 Projected Sales              450.0
5 Gross Surplus                96.0
6 Expected Net Surplus   76.0

Note :
1. All figures mentioned above are only indicative and may vary from place to place.
2. If the investment on Building is replaced by Rental then:
a. Total Cost of Project will be reduced.
b. Profitability will be increased.
c. Interest on C.E.will be reduced.