Start Potato Chips Manufacturing Business

In This Blogpost You’ll know all the details on how to start Potato Chips manufacturing business, investment needed, equipment required, license and other documents required, Industry Profit and competition.

Potato Chips Business idea works on a very basic business model unless you have a great USP to offer to your Customers like one given by JOLO Chips. In this you have to play on two factors taste and price and how you build your distribution network.

Starting Up

Before Starting up you will need An Experience To give a great taste, so what i would advice cook some sample’s and offer them to friends and family and get an honest feedback don’t fall a prey to yourself by self judging your product, always get review from your end customer because they are the one who decides the success of your business. After finalizing a recipe/taste build/write a business plan on how you are planning to invest money and how will you build your distribution network.

Equipment and Investment required

For A small scale manufacturing you can always choose available basic kitchen equipment but those things come at a price of large labor and more time SO for a successful/fast Potato Chips manufacturing business you will need good equipment

  • Slicing machine
  • Batch Frying Machine
  • Peeling and washing machine
  • Packaging machine
  • etc.

Price of all above commercial machines are around 25000-60000 so taking a rough estimate machines will cost around 2-4 lakhs.

Other than that you would need labor, place to operate and raw material. for labor you would need at least 2 lakh for initial period of business before it becomes profitable. For A small scale manufacturing you would need at least 500-800 sq. ft. and raw material is easily accessible at local farms or wholesalers/traders.

So Considering above expenses and including some extra expenses of getting documents ready, electricity, initial rent of place, acquiring customers your initial investment would be around at least 8 lakh(Could be more)

License and other Documents

First Of all To start a Potato Chips Manufacturing business you will need to register yourself with GST and get a company trademark name and get registered on MSME udyog registration. An Accountant or a legal advisor will guide you through all the processes.

Next You would need a FSSAI registration. Which is required by all the food based business.

Knowing and tackling Competition

You must understand that you are entering an industry which is very competitive a lot of big players are present and you must have tasted their products so you need to decide what kind of product are you planning to prepare to compete with them again i will remind of tactic played by JOLO CHIP it is the one of it’s own kind. Today nobody says spicy chips they say jolo chip this is the brand play. So you have to decide your USP and sell with a mindset to build brand . Try Digital/influential marketing. Sell on e-commerce sites.

Industry Profit

Current Industry profit is around 40-50%.

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