How to Make Money from Potato Chips Making

Introduction to how to make money from potato chips making business

Are you planning for potato chips making business? This blog provides you the perfect information, with a detailed potato chips business plan that will aid you to initiate a small-scale manufacturing business. Potato chips making business is one of the money-making small-scale manufacturing business that individuals can begin even from sitting at home. Potato chips are crunchy and crispy potato slices which are fried in oil and preserved in salt, as potato slice faces the dehydration when it comes in contact with oil. Now, let us get into the details to make money from potato chips making business in India.

Ideas to make money from potato chips making business

India is one of the largest potato crop growing country, potato chips are an interesting idea, and it gives substantial value to the potato. The popularity of potato chips as snacks is spreading quickly in all age groups. Potato chips are available in various flavors and taste with sometimes in attractive shape and texture, moreover; you can start the potato chips making business using the fresh potato.

Even though there are many potato chip manufacturers in India, but the sale for them in the market is high than any other product. Because it is everyone’s favorite snack item.

Market potential of potato chips making business 

India being largest potato cultivating country, estimated to have 12.5 million potatoes grown solely in India which is around 5% of total potato grown in the entire world but the problem is that the potato is soiled because of delay in transportation, lack of proper storage system, and other environmental factors. Potato chips had been one of the traditional food in India but now it has to be made in using scientific equipment and by following hygienic ways.

There lies a great demand for potato chips even in the rural as well as urban locations; people prefer instant food in present times and potato chips are the considered decent option for snacks since it lowers hunger quickly. Potato chips are healthy there is no such harmful ingredient used to prepare chips and it is easy to find the potato chips packet every corner nowadays.

By taking into account all direct and indirect factors which aid to grow market demand for potato chips it is an ideal thought to begin the potato chips making business by spending less capital and from your home.

Registration and license required for potato chips factory

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License requirement for potato chips business.
License requirement for potato chips business.

Potato chips making business is classified under the food production industry, you must deal with some paperwork before beginning potato chips making business.

  • Firm registration
  • GST registration
  • Trade license
  • MSME/SSI registration
  • Trademark
  • FSSAI – Food Safety and Standard Authority of India
  • IEC code

Area required for potato chips making 

The success of any business is indirectly based on the unit location and you must choose the location very particularly; an ideal location for potato chips making business should be close to raw material availability, provision for water supply, and electricity, along with proper drainage system, the target market. The required area for this business is around 1000 sq. ft. You can initiate the potato chips making business from your home if the sufficient space is available this may save you some investment but business from home for operations should follow few rules such as it is not allowed to cook any other food in the same location and pets are prohibited in this area. If you can follow this then you are eligible for the home-based business.

Raw materials required for potato chips business

Potato is the main material for the potato chips making business, you must be careful while selecting potato, and to reduce the charges associated with the raw material it is suggested to purchase the potato from the farmer. The quality of your chips mainly based on the quality of the raw material used. Thus, to make sure the raw material you use is of fine quality. Even the packaging material is used for the protection and for selling the potato chips. While choosing potato to make a quick inspection, select random potato a few slices of them and verify if they are of good quality or not.

You must find the raw material supplier who could regularly provide the raw material also be ready for the situation such as shortage of raw material so it is suggested to keep stock of the raw material or purchase raw material in advance.

Edible oil: for frying potato slices.

Flavor and spices: Flavors are used to make appealing chips with a variety of tastes.

Packaging material: It is needed to pack the produced chips for protecting and preservation purposes firstly and next for marketing and selling.

Potato: Main material used in potato chips.

Salt: It is an essential component in every food item for the taste.

Machinery used for potato chips manufacturing

You can begin the potato making unit in two ways either by using potato chips making machine. This can be either automatic potato chips making machine or semi-automatic potato chips making machine. There are also few potato chips making machines for a small business where you can opt for them based on your business scale.

List of machinery needed for potato chips manufacturing

  • Batch fryer
  • Dewatering machine
  • Plastic trays
  • Washing and peeling machine
  • Salting drum with inert gas flushing unit
  • Slicing machine (with an arrangement to adjust slice thickness)
  • Spice/flavoring coating machine
  • Spin dryer / hydro extractor
  • Stainless steel working tools
  • Vacuum sealing machine
  • Weighing scales, dispensers, and fillers
  • Washing and peeling machine: The primary step in potato chips making is to wash and peel the potato, the washing and peeling machine will carry out it very efficiently.

The potato is feed in the drum in which continuous water flow is available and the sharp edge blade will help to peel the potato.

Cutting machine: The next process is cutting of potato in slices, there are cutting plates that are mounted over the cutting machine which helps to slice potato as per the requirement, there is one advance alternative in cutting machine is that you can even adjust the potato slices size and pattern. This machine needs daily cleaning; cutting machines is having stainless steel, which needs cleaning and sanitizing daily.

Blanching machine: A blanching machine used for boiling of the potato slices for a short duration. It also helps to clean dirt and bacteria and also renders a bright color to potato slice.

Packaging machine: You must also pack the processed chips by using a packaging machine; you can use the nice designed packets for packaging. Also, packaging covers can be used as promoting material by printing the ingredients information along with attractive packaging that could attract customers.

The making process of potato chips

Sorting potatoes: When potato reaches the processing plant, they were inspected and sorted for the quality potato. The large oval and disease-free potatoes are selected for chips, green edge and blemish potato are isolated from the useful potatoes. The rejected potato after checking the weight of the defected potatoes if exceeded then the whole potato stock will be excluded.

Washing and peeling: The chosen potatoes are sent through the water spray container where the potato will be cleaned with cold water and sent for peeling. The peeling process takes place using a peeling machine or could be done manually.

Slicing: After peeling off the potato, will be cut into uniform slices of approx.1.7-1.85 mm thick using the slicing machine, and the slices are then immersed in cold water. Potato slices are kept in water with 0.05% potassium Meta bi-sulfate to prevent oxidation or for removing starch.

Blanching: After the slicing process, potatoes are blanched for around 4- 5 minutes in boiling water with the blanching machine, and then they are spread in the tray where he inconsistent/ non-uniform slices are separated from the batch and then the rest of slices are sent for frying.

Drying and frying: The moisture content of the potato slices is absorbed using the spin dryer or hydro extractor, later the slices are fried using a fryer at 1900 degree Celsius for about 4-5 minutes, and then placed in the container for cooling and to remove the extra oil from the fried potato chips.

Flavoring: Once fried chips are cooled, flavors are spread on the potato chips according to the taste using the salting and flavoring drum.

Packing: Once the complete method is done, the potato chips could be ready for packaging. The potato chips are packed into the plastic pouch using the sealing machine and then sent into the carton boxes for transportation to the clients and customers.

The cost to make a bag of potato chips, or the cost to start a potato chips business

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The cost to start a potato chips business.
The cost to start a potato chips business.

The potato chips making machine price starts from Rs. 22,000 and goes up to Rs. 3 lakhs based on the size of the unit.

The cost of raw materials for potato chips making is Rs. 5,000

The cost of the utensils is Rs. 10,000

The packaging cost is Rs. 2,000

Other costs involved is Rs. 1,000

The total cost involved to start small scale potato chips making business is Rs. 30,000

Where to sell potato chips

Local market: Find a local market where you can sell your potato chips. Look in your neighborhood restaurant and hotels, reach out to distinctive chefs and restaurants and tell about your potato chips.

Wholesale market: You can also sell the potato chips in the city wholesale market in bulk.

Online market

B2B websites: It is also important to register your potato chips business on websites such as Alibaba, Indiamart, Tradeindia, Exportersindia, etc. to sell your product for bulk orders.

B2C websites: If you can register your potato chips business on B2C websites such as Amazon, Flipkart, Snapdeal, Bigbasket, etc. where you may directly reach to the customer.

Brand and uniqueness

Branding is the proper method for any business start-up, but in the potato chips preparing business it is quite difficult to use this strategy as already some popular brand would have captured the market. You must have some new flavor that could emerge your brand with your unique identity, with some innovative and unique flavor. While marketing the business you must study the competitors, check the competition and think about promoting your brand.

You can even reach program organizers, attend some party and other events for the promotion of your potato chips, you can even offer them with sample packets for taste. Apart from all conventional ways of promotion; online promotion is a very well-organized and active way to popularise your brand. You may even start own online shop for online booking via website or by calls, or you can deal with another hosting site that will guide to sell and familiarize your product to the customer.

The conclusion to make money from potato chips making business

If you own land and you can go for potato farming, this can save you a lot of money in potato chips making.


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