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Potato Processing, Potato Based Products, Potato Chips & Wafers, Potato Granules, Potato Wine, Alcohol, Vodka, Sticks, French Fries, Potato Specialties, Dehydrated, Frozen Potato Products, Potato Starch, Potato Powder, Flakes & Pellets, Liquid Glucose

 

Potato is probably the most popular food item in the Indian diet and India is one of the largest producers of potato. It is grown all over the country with Uttar Pradesh growing the maximum quantity. Globally, potatoes stand out as the most popular tuber crop. Potato processing is among the fastest-growing industries. It is not surprising that world market analysts suggest that the current potato processing market has a value of approximately 40 billion US dollars. 

Potato is a very rich source of starch. It also contains phosphorus, calcium, iron and some vitamin C & A. The protein calorie ratio is high. Boiling potatoes increases their protein content and almost doubles their calcium content. It is vastly consumed as a vegetable and is also used in various forms such as starch, flour, alcohol, and dextrin and livestock fodder.Besides being used as a daily food item in various vegetable preparations, potato today increasingly finds use in the form of chips or wafers as snacks food. The potato chips and wafers are popular processed food items that give considerable value addition to potatoes. 

The rise of the 'snacking' phenomenon is now fairly well documented on an international scale, although the rate and extent of development do vary from country to country. With the breakdown of formal meals, consumers are increasingly tending to eat a number of smaller snacks during the day rather than three full meals. Furthermore, in an increasingly fast paced financially well-off society there is growing demand for snacks that are easy to buy, store and eat, with an increasing number being eaten 'on the move'. With this background, the potato wafers and chips market seems to hold good growth prospects.

According to global snack market analysis, potato chips account for an average of 35% of the total savory snacks market. 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.

Potato is a highly nutritive food and the crop can be produced in 90 to 100 days. Its wide adaptability in planting and harvesting makes it an ideal crop to grow between two major crops. India's potato production has seen a phenomenal increase since the 1950s, mainly due to strong demand from the processing industry and remunerative returns. According to the Central Potato Research Institute (CPRI), the area under potato rose by almost 547% since the 50s, while yield rose by 267% and overall output jumped by 146%. In 2008-09, potato production (which is a rabi or winter crop) is estimated to be around 28 million tonne as against 25 million tonne achieved last year. India' potato output is likely to rise by 5.1 percent to a record 32.7 million tonnes in 2009/10.

India ranks third contributing around 7.5% to the world’s production. Production wise India has always remained in the top ten since last twenty years. The states of Uttar Pradesh, West Bengal, and Bihar accounting for more than 75 percent of area under cultivation and about 80 percent of total production; Europe is the largest per capita consumer, followed by North America and Latin America. Fresh potatoes are exported to Sri Lanka, UAE, Mauritius, Nepal, Singapore, Maldives, Kuwait etc.

The overall size of the snack food market is estimated at Rs 45 to Rs 50 billion. The market is reported to be growing at 7 to 8 % annually. Potato chips is estimated to constitute nearly 85% of India’s total salty snack food market of about Rs 2,500 crore.  In the Rs 19 billion branded(organized )snacks market, constituting over 40% of the market by value, Frito-Lay is estimated to command a market share of 45%, followed by Haldiram at 27% and ITC at 16%. The branded snacks market accounted for 16% by value and 12% by volume sales in 2007. According to a projection by Euromonitor International, the branded snacks market would reach a value of Rs 35 billion by 2012.

The organized snacks category is sub-divided into the traditional segment (bhujia, chanachur and the like), Western segment (potato chips, cheese balls etc.) and the newly established finger snacks segment, which is an adaptation of traditional offerings in the western format.

The leading brands in the market are Lays, Bennie’s, Uncle Chips, Ruffles, Bingos and others.

Looking to the estimated demand of nearly 50 million tonne of potato by 2020, for a nearly 1.3 million population, the production and productivity will keep rising. According to a study by McKinsey & Co, the Indian food market will grow two fold by 2025 with the rapidly growing Indian economy and improving lifestyles of Indians contributing in a big way to this growth. The market size for the food consumption category in India is expected to grow from US$ 155 billion in 2005 to US$ 344 billion in 2025 at a compound annual growth rate of 4.1 per cent according to market survey. With a growing population and rising per capita income with different lifestyles consumers are willing to pay a premium for both value-added private and branded products, creating immense opportunities for manufacturers and retailers in this sector.

In this article, you will read about several aspects of the potato and potato products industry. These include:

  • How to set up a potato processing business plan
  • How to prepare a project report on potato onion flakes
  • Small scale business idea in potato flakes manufacturing project
  • Case study - potato and potato-based products industry

How to set up a Potato Processing Business Plan?

Are you planning to start processing potatoes into various potato-based products? If your answer is yes, you will find the guidelines below helpful in setting up a potato processing business plan.

1. Review target market potential

One advantage you will have as a manufacturer of potato products is market availability. The global demand for potato chips or crisps is very high. You should know that you are about to enter a market already inhabited by several well-established manufacturers.

2. Legal Obligations

As you set up your business plan, you should consider all applicable statutory requirements. These include getting clearance from the registrar of companies, environmental management authorities, and trade licensing.

If you intend to invest in potato flour production or any other food product at all, you should also consider clearance by the Food Safety and Standards Authority. Find out what other legal obligations in your country relating to potato product and potato chips processing.

3. Site Selection

Whenever you think of the ideal location for a small scale manufacturing business in the potato industry, these two factors should ring in your mind:

  • The nearness of the factory to potato-farming zones, including accessibility by road
  • Proximity to the targeted market

4. Supply of Fresh Potatoes

Consider the number of potatoes produced in your country or site locality. Find out the number of existing manufacturers and their demand for potatoes. Similarly, consider availability and affordability of cooking oil, food additives and preservatives, and packaging materials.

5. Machines and Equipment

Some of the machines you need to consider as you work on a business plan include:

  • Potato washing, peeling, and chopping  machines
  • Blanding machine
  • Packaging and sealing machines

6. Manufacturing process

Do some research and identify an ideal cost-effective manufacturing process and technology relevant to your desired product.

7. Marketing Strategy

When scaling a small business, it is essential to decide on the mode of selling your product.

Small-scale business idea in Potato Flakes Manufacturing

When planning for small-scale business ideas, one thing that will hardly cross most would-be investors is manufacturing. Many look at it as expensive to invest in manufacturing projects.

However, many small manufacturing business ideas do not require heavy machinery or financial inputs. Simple manufacturing business ideas such as potato flakes manufacturing need minimal inputs to start. 

I will give you just a few profitable small-scale business ideas in potato flakes processing that you might want to consider:

1. Supply of fresh potatoes

Potato flakes industries rely heavily on a steady supply of potatoes. The global demand for potato flakes is on the rise. At the same time, potato production is on a declining path in most continents.

With the above factors in mind, sourcing for potatoes is becoming a tedious task for potato flake manufacturers. They would instead outsource this service.

2. Supply of Potato Flakes

You do not need to manufacture potato flakes to trade in this precious commodity. You can be that link between the manufacturers and consumers. Potential consumers for potato flakes include various food processing firms that use potato flakes to prepare assorted snacks.

3. Baking Industry

Bakeries worldwide are increasingly adopting potato flakes in baking pancakes, biscuits, bread, and waffles. Bakeries are among the types of small-scale business options with very low starting capital.

How to prepare a Project Report on Potato Onion Flakes?

Are you thinking of potato flakes as a possible business idea? If you intend to start a potato flakes manufacturing project, one of the preliminary steps is to prepare a business project report. Here are some tips to guide you in preparing a project report on potato onion flakes.

1. Establish availability of fresh potatoes

Fresh potatoes are the raw materials for potato flakes. Your report needs to establish a steady, sustainable supply of potatoes.

2. Survey your Market

As you explore your market potential for potato flakes, the report should focus on the following:

  • Demand for fast foods like cutlets, burgers, and assorted processed meats
  • The current level of production of potato flakes
  • Current retail prices
  • Usages of potato flakes in the local community
  • Project description

Describe the properties and characteristics of your potato flakes. How different or unique are they going to be? What process and technology are you going to use?

3. Infrastructure and Equipment

Identify the basic facilities and machines you will require and their costs.

Case study – Potato and Potato-based Products Industry

A case study on potato and potato-based industry provides you with the relevant details of the industry that prospective profitable small-scale industries need to know. Here is an overview of the global potato and potato-based products industry.

1. Market Potential

Because of the global popularity of fast foods, potato production and processing are among the fastest-growing sectors.

Over one hundred countries in the world do commercial potato production. The largest producers are China and India. Other notable global suppliers of potatoes are Russia, the US, and Ukraine. Increasing global demand for processed food drives the demand for fresh potatoes. Other consumers of potatoes are animal feeds, adhesives, and organic fuel manufacturers.

Owing to its market potential, potato production is one of the best manufacturing business ideas.

2. Current Industry Status

There are over 420,000 industries in the global food-processing sector. This sector has a market value exceeding 2.2 trillion US dollars. These industries rely on a steady supply of either fresh potatoes or potato products e.g., potato flakes, powder, starch, or flour.

Key players in the industry are fast-food chains and restaurants, frozen potato production, and chips and potato pellets industries. There are more potato-processing factories in Europe and North America than in other contents. These include both small-scale manufacturing industries and the large dominant players.

3. Key Challenges

The major constraints that will shape existing companies’ operations and new manufacturing business ideas are as follows:

  • Growing health concerns about the consumption of fast foods, e.g., obesity and diabetes
  • High potato storage and transport costs

Despite these challenges, the trends for consumption and demand for fast foods in on the rise. We expect these trends to continue rising over the next decades, providing unlimited options for small scale manufacturing business ideas.

 

We can provide you detailed project reports on the following topics. Please select the projects of your interests.

Each detailed project reports cover all the aspects of business, from analysing the market, confirming availability of various necessities such as plant & machinery, raw materials to forecasting the financial requirements. The scope of the report includes assessing market potential, negotiating with collaborators, investment decision making, corporate diversification planning etc. in a very planned manner by formulating detailed manufacturing techniques and forecasting financial aspects by estimating the cost of raw material, formulating the cash flow statement, projecting the balance sheet etc.

We also offer self-contained Pre-Investment and Pre-Feasibility Studies, Market Surveys and Studies, Preparation of Techno-Economic Feasibility Reports, Identification and Selection of Plant and Machinery, Manufacturing Process and or Equipment required, General Guidance, Technical and Commercial Counseling for setting up new industrial projects on the following topics.

Many of the engineers, project consultant & industrial consultancy firms in India and worldwide use our project reports as one of the input in doing their analysis.

We can modify the project capacity and project cost as per your requirement.
We can also prepare project report on any subject as per your requirement.

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Potato Chips/Wafers in Different Flavours - Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities

Potato is widely consumed as food all over the world. Potato chips are basically used for snacks purposes. They are produced by rapid dehydration of potato slices by direct contact with hot oil. Its crispiness and special palatability makes it the favourite of people of all age groups. Different varieties of potatoes are usually used for chips. The market acceptance of potatoes chips it is necessary to make variety of chips by adding different types spices and flavour or by adding some nutritional coating on the chips, it may be sweetened, salty, pungent or any other developed acceptable variety. The production of chips and wafers of concentrated in household units and small units. There is good scope for new entrepreneurs, they may successful in this field provided manufacturing quality product with economic price. You can invest in this project.
Plant capacity: 2000 Kgs/DayPlant & machinery: Rs. 137 Lakhs
Working capital: Rs. 91 LakhsT.C.I: Rs. 271 Lakhs
Return: 39.21%Break even: 40.17%
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Potato Powder -Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities, Cost and Revenue, Plant Economics

The protection of food stuffs from spoilage by moulds and bacteria is a major concern of the food technologist. Potatoes can be consumed in varied forms. In fact, it is a vegetable that can easily be combined with any other food item including other vegetables, cereals, pulses, meat and poultry. Potato is one of the important tuber vegetable which is consumed throughout the year. The potato tubers vary in size, shape, colour, depth of eyes etc. which are important characteristics. In India potato is largely cultivated. So it is a good idea to make potato powder from raw potato. That?s why we have to say that this is a good opportunity for a new entrepreneur.
Plant capacity: -Plant & machinery: -
Working capital: -T.C.I: -
Return: 1.00%Break even: N/A
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Potato Powder (Automatic Plant)- Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities, Cost and Revenue

The importance of potato as food is immense as it can be consumed in varied forms. Potato powder is a highly concentrated and nutritious flour ground from the pulp of cooked potato. The potato powder is used as thickening agent in soups and stems, for breading meat and fish. It is used extensively by the armed forces, the civilian trade and the school lunch programme. India is one of the major potato producing countries in the world. Almost all states of our country are producing this crop widely. The potato powder is meant only for export . More than 70% of the total indigenous production of potato powder is exported to various countries. Domestic market for dehydrated and powdered potato also exists. The potato dehydration and powder-manufacturing unit has exclusively been reserved on small scale by the Government of India, as per the industrial policy.
Plant capacity: 6 Ton/DayPlant & machinery: Rs. 175 Lakhs
Working capital: Rs. 176 LakhsT.C.I: Rs. 460 Lakhs
Return: 48.98%Break even: 50.23%
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Potato Granules - Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities, Cost and Revenue, Plant Layout

Potato is widely used vegetable in all over the world as food item. Modern food technologist has developed variety of food products which is manufactured by potato. The potato popular food products are potato chips, potato powder, potato flakes and potato granules etc. Potato granules are used for preparation of different variety of crispy food products like namkeen, bhujiya, soup curry and snack foods. It can be used for making sweeten food. There are few organized and several private sectors are engaged to produce potato granules with other food processing products. The demand is increasing day by day due to population growth and food habit changes by man due fast life. The new entrepreneur may enter in this field with other food processing items. He will be successful in this venture.
Plant capacity: 1.0 Ton/DayPlant & machinery: Rs. 67 Lacs
Working capital: Rs. 29 LacsT.C.I: Rs. 163 Lacs
Return: 31.86%Break even: 44.32%
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Potato Starch - Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities, Cost and Revenue, Plant Economics

Potato is widely consumed as food all over the world. It contains the starch as a major carbohydrate. Surplus and cull potatoes are used as feed for live stock and also as raw material for the manufacture of starch, ethyl alcohol and few other industrial products like, dextrose, liquid glucose etc. Potato starch is used in paper manufacture for beater sizing, tub sizing, calendar sizing and surface coating. It is also used in the textile industry in the sizing of cotton, worsted and spun rayon wraps. Much of the potato starch utilized in the food industry, is used in bakers specialty items. It is also used in producing adhesives and dextrins, as a fermentation raw material, binder for tablets, and binder and extender for sausages. Starch is produced in India both in the medium scale sector as well as in the small scale sector. The new comer easily venture in this field.
Plant capacity: 6 MT/DayPlant & machinery: 27 Lakhs
Working capital: -T.C.I: 86 Lakhs
Return: 34.00%Break even: 52.00%
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Potato Powder - Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities, Cost and Revenue, Plant Economics

Potatoes are consumed in varied forms all over the world. They are also processed into powder form in order to prevent-their spoilage. Potato Powder is highly concentrated and nutritious flour ground from the pulp of cooked potato. It is used as thickening agent in soups and stews and for breading meats and fish. It is mostly used by armed forces and the civilian trade. About 70% of the total indigenous production of potato powder is exported to various countries. So a new entrepreneur can well venture in this field by installing an unit of potato powder.
Plant capacity: 6.00 TON/dayPlant & machinery: Rs. 200 Lakhs
Working capital: -T.C.I: Rs. 500 Lakhs
Return: 49.00%Break even: 40.00%
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Potato Powder, Flakes and Pellets -Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities,Plant Layout

The powder of potato is known for sustaining millions of lives by providing food and nutrition during distress times. Its great taste makes potato one of the most important food crops in the world. In India, potatoes are grown in winter under short-day conditions potato powder flakes and pellets are processed potato. It will help to increase the shelf life of potatoes. It is used for making allu bhujia, to make soup concentrate and also used as breakfast or snack food. Potato is a perishable commodity, it needs to be stored at proper temperature. Approximately 10% of potato production is used as seed. Approximately 20% of produce is wasted due to transport and inadequate storage. Thus, total production 70% is consumed as fresh or processed. Processed potatoes includes chips, fries, powders, meals etc. in certain households still most of the production of potatoes is consumed as fresh. There is a good scope for new entrants.
Plant capacity: 1.80 MT/DayPlant & machinery: 125 Lakhs
Working capital: -T.C.I: 246 Lakhs
Return: 36.00%Break even: 51.00%
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POTATO CHIPS/WAFERS AUTOMATIC PLANT -Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities, Plant Layout

Potato is widely consumed as food all over the world. Potatoes are consumed not only as a fresh vegetable, but also in a variety of processed forms. Potato chips are basically used for snacks purposes. They are produced by rapid dehydration of potato slices by direct contact with hot oils. Its crispness and special palatability make it the favourite of people of all age groups. Potato wafers and chips are one of the most popular food products now-a-days. They are dried chips/wafers from semi-boiled potatoes. Potato wafers are consumed by and large with alcoholic drinks, in parties and during journey. The demand in future would depend upon many factors like population, consumer preference for wafers over other similar food products, urbanization etc. In terms of taste and convenience no other food item is as acceptable as wafers. Keeping all these in a consideration the demand is expected to increase at 30% per annum. A new entrepreneur can confidently venture into this field.
Plant capacity: 120 MT / AnnumPlant & machinery: 166 Lakhs
Working capital: N/AT.C.I: Cost of Project : 268 Lakhs
Return: 38.00%Break even: 35.00%
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POTATO POWDER (Automatic Plant)- Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities, Cost and Revenue

Potato is one of the important tuber vegetable, which is consumed throughout the year. It can be consumed in varied forms. In fact, it is a vegetable that can easily be combined with any other food item including other vegetables, cereals, pulses, meat and poultry. Potato powder is highly concentrated and nutritious flour ground from the pulp of cooled potato. The potato powder is used as thickening agent in soups, stews and for breading meats and fish. It is used extensively by armed forces, the civilian trade and the school lunch programme. There are about 15-20 units engaged in the manufacture of dehydrated and powdered potato. Although domestic market for dehydrated and powdered potato is there but more than70% of the total indigenous production of potato powder is exported to various countries. India is one of major potato producing countries in the world. It is estimated that 70 % of potatoes are consumed as fresh or processed. There is a bright scope for starting up a new unit of the same.
Plant capacity: 4 Ton / DayPlant & machinery: 2 Crores
Working capital: -T.C.I: 5 Crores
Return: 37.00%Break even: 46.00%
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POTATO STARCH - Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities, Cost and Revenue, Plant Economics

Potato is widely consumed as food all over the world. It contains the starch as major carbohydrates. The potato contains approximately 18-21% of carbohydrates. The major carbohydrate is starch. Potato starch is produced from varieties selected and grown for their high starch, low protein and low fibre contains. Potato starch is used in paper manufacture for beater, sizing, tub sizing calendar sizing and surface coating. It is also used in the textile industry in the sizing of cotton, worsted and spun rayon warps. Much of the potato starch utilized in the food industry is used in bakers speciality items. Starch is produced in India both in the medium scale sector as well as in the small scale sector. The looking its uses there is a good scope for new entrants.
Plant capacity: -Plant & machinery: 1
Working capital: N/AT.C.I: -
Return: 1.00%Break even: N/A
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  • One Lac / Lakh / Lakhs is equivalent to one hundred thousand (100,000)
  • One Crore is equivalent to ten million (10,000,000)
  • T.C.I is Total Capital Investment
  • We can modify the project capacity and project cost as per your requirement.
  • We can also prepare project report on any subject as per your requirement.
  • Caution: The project's cost, capacity and return are subject to change without any notice. Future projects may have different values of project cost, capacity or return.

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