Potato Chips Making Business

How to Start a Potato Chips Factory? Potato Chips Making Business Plan

Are you looking for Potato Chips Making Business? Here you get the detail business plan that will help you to start a small-scale manufacturing business.

Potato Chips Making Business is one of the profitable small-scale manufacturing business individuals can start this business even from home.

Potato chips are a crispy and crunchy slice of potato which is fried in oil and preserved in salt, potato slice goes through the dehydration while getting in contact with oil.

India is one of the largest potato crop growing country, potato chips is an interesting innovation, it gives considerable value to the potato, Popularity of potato chips as snacks is growing fast in all age group.

Potato chips are available in different flavor and taste with some attractive shape and texture, additionally; you can start the French Fries Making Business from using the fresh potato.

Potato Chips Business

In the current market, the potato chips business is in great demand. With more number of individuals based on food that is fast, Chips will also be rising in demand. By the next few years, it is expected that the demand for homemade potato chips may increase every year by around 4 percent from the Indian sector.

Being easily affordable and available, the demand and popularity of homemade potato chips are increasing. Chips are also considered low-fat wholesome choices for healthy food. This implies that in near future the market demand will further grow.

#1 Potential of Potato Chips Making Business (Market Opportunity)

India is largest potato growing country, around 12.5 million potatoes are grown in India which is 5% of total potato grown in the whole world but the disadvantage is that the potato is soiled due to transportation, storage system, and other environmental changes.

The potato will save using different preservation technique, potato chips making is one of them, Potato chips are one of the traditional food in India but it has to be made in scientific and hygienic ways.

There is a huge demand for the potato chips from the rural as well as urban area; people prefer instant food and potato chips are the best option for snacks it eliminates hunger quickly.

Potato chips are healthy there is no harmful ingredient used to produce chips and it is easily available in every corner shop, shopping mall you can find the potato chips packet everywhere.

By considering all direct and indirect factors that help to grow market demand for potato chips it is a good idea to start the potato chips making business by investing small capital you can start the potato chips making unit from your home.

#2 Registrations & Licenses Required for Potato Chips Factory

Potato chips making business is categories under food production industry, you need to deal with some documentation before starting potato chips making business

#1)Registration of Firm: You may start the small to medium scale cashew nut processing unit either a Proprietorship or Partnership Firm.

If you are starting this Potato Chips business as One Person Company, then you have to register your firm as a proprietorship.

For Partnership operation, you have to register as a limited liability partnership (LLP) or Pvt. Ltd. Company with Registrar of Companies (ROC).

#2)GST Registration: You will need to get GST number which is compulsory for every business owner

#3)Trade License: Apply for tread license

#4)MSME/SSI Registration: MSME Udyog aadhaar registration will help you to get all subsidies and another facility that offer by a state government

#5)Trade Mark: Defiantly you establish your brand and company name hence you have to protect your brand and name by registering a trademark license

#6)Food Safety and Standard Authority of India (FSSAI): Potato chips making is the food industry so you have to get permission from FSSAI

#7)IEC code: If you are planning to export your potato chips then you need to apply for the IEC code.

#3 Area required for Potato Chips Making (Location)

The success of the business indirectly depends on the location so you need to choose the location very carefully; an ideal location for Potato Chips Making Business is that close to raw material supplied and the target market.

The area with 1000 sq ft space is sufficient for this business; Make sure that the area must have facilities like water supply, electricity, and drainage facility.

You can start the Potato Chips Making Business from your home it will save you some capital investment.

While starting the business from home you have to ensure that the location must follow the rule that mentions by the state government.

If your state government mention some restriction; such as you cannot cook the other food in the location of the business or the pets are not allowed in the location area; then make sure that you are eligible for the home-based business.

#4 Raw Materials required for Potato Chips Business

Potato is the base material for the potato chips making business, you have to careful while choosing potato, and to reduce the cost of raw material it is advisable to purchase the potato from the farmer.

The quality of your product depends on the quality of the raw material you used thereafter to ensure that the raw material you purchase is of good quality.

You will need to procure the packaging material which will be used to protect and selling the potato chips.

While selecting potato to do a quick inspection, draw random potato take the slices of them and check whether it is of good quality or not.

You need to find the raw material supplier that will constantly provide the raw material also be prepared for the situation like shortage of raw material. In that case, you have a backup for the raw material, it is advisable to purchase raw material in advance.

Raw Materials required for potato chips making:

Edible Oil: To fry potato slices

Flavor & Spices: Flavors are used to make delicious chips with various tastes

Packaging Material: Used to pack the proceed chips for marketing and selling also for protecting and preservation purpose

Potato: Base material used in potato chips making make even slices of potato using machinery

Salt: An essential ingredient in every food item to add taste.

#5 Machinery used for Potato Chips Manufacturing

You can start the potato making unit by two methods either as semi-automatic or  fully-automatic methods

List of machinery required for potato chips manufacturing

  • Batch Fryer
  • Dewatering Machine
  • Plastic Trays
  • Washing and Peeling Machine
  • Salting Drum With Inert Gas Flushing Unit
  • Slicing Machine (With 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 first step in potato chips making is wash and peel the potato, washing and peeling machine do this work very efficiently.

The potato is feed in the drum where continues water flow is going on then the sharp edge blade are helps to peel the potato.

Cutting Machine: next step is cutting of potato in equal slices, there are cutting plates are mounted over the cutting machine that helps to slice potato according to the requirement, there is one advance option in cutting machine is that you can adjust the potato slices size and pattern.

This machine required daily cleaning; Cutting machine made up of stainless steel, which helps to easily clean and sanitary machine

Blanching Machine: a blanching machine used to boil the potato slices for a short period of time.

It helps to clean dirt and bacteria also help to get a bright color to potato slice.

Packaging Machine: You need to pack the processed chips with the help of the packaging machine; you can use the attractive packets for packaging.

Also, packaging bags are used as promoting material by printing the user-friendly information; the attractive packaging will help to attract customers.

#6 Manufacturing Processes of Potato Chips Business

#1) Sorting Potatoes:

When potato arrive at the processing plant, they were examined and sorted with the quality of potato

The large oval and disease-free potatoes are required for chips, Green edge and blemish potato where separated from the useful potatoes

The rejected potato is weighted with weight machine and if the weight of the defected potatoes is exceeded then the whole potato stock will be rejected

#2) Washing & Peeling:

The selected potatoes are passed through the water spray container where potato will be washed with cold water and send them for peeling

Peeling process is takes place with the help of a peeling machine or it can be done manually

#3) Slicing:

After peeling the potato will cut into uniform slices around 1.7-1.85 mm thick with the help of the slicing machine, and the slices are immersed in cold water

Potato slices are kept in water with 0.05% potassium Meta bi-sulfate to avoid oxidation. Or to remove starch

#4) Blanching

After slicing process, potatoes are blanched for 4 to 5 minutes in boiling water with the help of a blanching machine and the spread in the tray then the inconsistent/ non-uniform slices are separated from the batch and then the remaining slices are moved to frying

#5) Drying & Frying:

The moisture content of the potato slices is removed using the spin dryer or hydro extractor, later the slices are being fried in a fryer at 1900 degree Celsius for 4 to 5 minutes

And then kept in the container to cool and to remove access oil from the fried potato chips

#6) Flavoring:

Once fried chips are cooled, Flavors are spread on the potato chips as per taste with the help of salting and flavoring drum

#7) Packing:

After done with all the processing method the potato chips are ready to packaging

The potato chips are packed into the plastic pouch with the help of the sealing machine and then the packed into the carton boxes for delivery to the clients and customers.

Related Business Ideas:

Ice Cream Cone Making Business

Biscuit Making Business

Honey Processing Business

Spice Powder Making Business

Cashew nut Processing Manufacturing

#7 Where to Sell

Local market (retail market)

Find nearby market and sustenance indicates where you can offer your potato chips.

Look in your neighborhood hotels and restaurant, contact distinctive chefs and restaurants. And inform them regarding your potato chips.

Wholesale market

You can sale potato chips in your city wholesale market in bulk.

Online market

B2B Websites:

Register your Potato Chips business on B2B websites like

  • Alibaba
  • Indiamart
  • Tradeindia
  • Exportersindia

etc. where you can sell your product on bulk orders.

B2C Websites:

Register your Potato Chips business on B2C websites like

  • Amazon
  • Flipkart
  • Snapdeal
  • Bigbasket

etc. where you can sell your product directly to the customer.

Brand and Uniqueness

Branding is the best strategy for any business startup, but in the potato chips making business it is quite hard to use this strategy because some popular brand already capture the market

You need come with some new flavor that will become your unique identity, innovate unique flavor.

While marketing the business you need to study the competitors, analyze the competition and do a plane for promoting your brand.

You can contact event organizers, attend the party and other events to promote your potato chips, you can offer them a free sample for taste.

Leave the promoting material on the event side so anyone can get informed about your product and if they like your product they will easily contact you.

Apart from all tradition way of promoting; online promotion is a very efficient and effective way to launch your brand. You can open your own online shop where you can sell your product, or you can tie-up with another hosting site that will help to Sale and introduce your product to the customer.

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