How to Start Potato Chips Manufacturing Business

Potato chips manufacturing business can be initiated on a small scale with moderate capital investment. Potatoes are widely consumed as food all over the world. Potato is basically used as a snack item. They are produced by rapid dehydration of potato slices by direct contact with hot oil. Its crispiness and special palatability make it the favorite of people of all age groups.

Different varieties of potatoes are usually used for chips. The market acceptance of potato chips is necessary to make a variety of chips by adding different types of spices and flavors or by adding some nutritional coating on the chips, it may be sweetened, salty, pungent or any other developed acceptable variety.

There is a good scope for new startup entrepreneurs for this small business manufacturing project of providing a quality product at an economic price.

Potato Chips Manufacturing Business Plan Guide

The main consumers of potato chips and wafers are families, especially in urban and semi-urban areas. Besides, hotels, restaurants, canteens, army establishments require potato chips in significant quantities.

In urban areas, the per capita consumption of potato chips or wafers is more. Hence, there are good prospects for potato chip units, especially near the potato-growing areas. Here are the 7 important steps to follow to start and run successful potato chips making business.

1. Potato Chips Manufacturing Process

The main process steps in the production of potato chips are –

  • Visual inspection and sorting of potatoes
  • Washing
  • Peeling and trimming
  • Slicing and cutting
  • Washing, sorting, and dewatering
  • Frying
  • Cooling, salting, and packing.

2. Machinery For Potato Chips Making

To manufacture potato chips you need certain types of machines. Some of them are the following:

  • Potato peeling machine cap.
  • Slicing machine with an arrangement to adjust the thickness of slice complete with motor etc.
  • Blancher
  • Spin dryer to extract excess moisture
  • Deep fat fryer
  • Electric polythene bag sealing machine.
  • Weighing machine.

3. Where to Find Potato Chips Manufacturing Machine

You can contact your nearby machinery dealer in your locality. However, there are also online marketplaces where you can ask for free quotes. Alibaba is one popular place where you can get free quotes for the desired machinery.

4. Cost of Potato Chips Making Machine

There are broadly three kinds of machines available for commercially making potato chips. A fully automatic machine will cost in the range of $8000 to $ 60,000. Semi-automatic will cost in the range $2000 – $15,000. If you want to start home-based potato chips making business, you can go with a manual one. It will cost you around $300-$500.

5. Select a Location for Potato Chips Making Factory

Selecting the location is a very important aspect of this business. You must choose a location for your potato manufacturing unit near potato growing areas. This will ensure a steady flow of potatoes which is the main raw material in this business.

6. Make your Manufacturing Business Legally Compliant

You will need to register to legally operate the potato chips making business. In addition, there will be a requirement for specific licenses and permits to manufacture and sell the products. Talk to a local competent professional or local administrative authorities and procure the required permits.

7. Have a Marketing Plan

No manufacturing business is successful if effective marketing strategies are not applied. Depending on your budget, prepare a promotional plan. Another important aspect is to fix the distribution strategy. Some of the popular ways of selling potato chips are through wholesalers. retailers, and opening exclusive storefront.

Nowadays, going online is mandatory for success for any business. One can create a website and sell products from there. Furthermore, have a tie-up with B2C and B2B marketplaces and sell from them.

The potato chips manufacturing business is a potentially profitable venture if planned properly.