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

b Working Capital
TOTAL PROJECT COST :

Rs. 250000.00

Rs. 88500.00
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 :
8 Administrative Expenses :
9 Overheads :
10 Miscellaneous Expenses :

Rs. 60000.00
Rs. 20000.00
Rs. 30000.00
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