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The project is for establishment of Banana and Potato Chips manufacturing unit at the village
level in order to add value to the produce of farmers of the area. The unit will utilise banana and
potato to produce chips and powder, for which there is a good demand in the market.



Banana is one of the important fruits in India and occupies about 4.83 lakh hectares with a
production of about 16.17 million MT. Banana is considered as a rich source of energy
producing food. It is consumed in several varieties of preparations and forms. Major share of
banana production in the country is consumed in the fresh form. Being highly perishable in
nature, there is a need to preserve this important fruit by processing it to produce banana pulp,
banana chips, banana powder etc. to cater to the needs of different sections of the society and
thereby provides incentives to the growers. Varieties of Banana suitable for chips and powder
manufacturing are ,  ! and c"#.  $ is used in $!%
 for ! or in !%"&'!' .

India's production of potato is about 224 lakh MT. The production is largely concentrated in
the northern part of the country. Potato is a rich source of starch & carbohydrates, significant
amounts of vitamins and minerals. It is estimated that about 25 % of the potatoes, which are
spoiled due to several reasons, may be saved by processing and preservation of various types of
processed products. The potatoes can be processed for preservation and value addition in the
form of wafers/ chips, powder, flakes, granules, canned slices etc. cc$ is one of the
oldest commercially processed vegetable products. In ! it is used in "&!%!' and as
a !&!% % in the soups. Chips are the most commonly consumed ! %!
&foods. They are used as snack food both in domestic as well as in fast food centres and
restaurants as side dish & garnisher. Moreover, the product can be safely stored for upto six
months without change in quality. Varieties of Potato suitable for chips and powder are (!
! - ), (!!*+, (!,'! and (!&!.

Value addition can be in the form of grading, cleaning, packing, pre-cooling, primary
processing like cutting, trimming, removal of inedible portion, processing to final products etc.
Êccording to the FÊ definition, processed foods can be of three types: Primary, Secondary and
Tertiary. (i) Primary processing involves basic cleaning, grading and packaging, (ii) Secondary
processing involve modification of the basic product to a stage just before the final preparation
at consumer's kitchen and (iii) Tertiary processing leads to high value-added ready-to-eat
products.

The fruit and vegetable processing industry in India is extremely de-centralised, as a large
number of these units (about 70 %) are in the cottage and small sector. There is a need to have
technology upgradation for better quality, recovery, packaging and marketing techniques in all
the segments of the industry.

- ./-
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1. Chips: Harvesting -- Receiving -- Washing -- Peeling (manual) -- Slicing -- Removal of

excess water -- Frying -- Mixing of salt and spices -- Cooling -- Packaging -- Transport -
- Marketing
2. Powder: Harvesting --Receiving -- Washing --Peeling (manual) -- Drying -- Pulverising -
- Packaging -- Transport -- Marketing

Chips and wafers are the age old snacks and fast foods in India and hence no outside
technical support is required. There are a number of equipment manufacturers and technology
suppliers in the country who guide the entrepreneurs in installation and commissioning of such
units.

.!: The site should be a raised one, well drained and must be well connected by roads. It
should be preferably in a raw material production area or at the consumption centre. Either one
or both raw materials (potato and banana) must be produced in the area. The hygienic condition
of the surroundings must be kept in mind while selecting the site. Water and power in sufficient
quantities and qualities must be available. The # ! selected for the purpose is located in
the !!#!!%0.&$0c.

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The present model project is for processing of 0.8 MT per day by operating in a single shift
basis. Based on the seasonality of raw materials, the annual installed capacity of the present
model project is considered as given below:

S.No. Name of the product Raw material (MT) Finished Products

(MT)
1 Banana 120 21.60
2 Potato 120 24.00

# +12 13452

The capacity utilization pattern considered for working out the economics is 326!!
', 726!' and 826!'$.

!#!%

For a project of the present size, a factory building of 12  9 )2  will be sufficient. The
various structures required are as given below:

Platform for receiving the raw material - 8 m x 5 m.

1. Working space for the factory - 12 m x 10 m.

2. Store room - 3 m x 4 m.
3. Finished product storage - 10 m x 10 m.
4. ffice - 3 m x 4 m.
5. ther common facilities like lobby, water closet, bath and verandah.


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The following plant and machinery will be required :

Chips making/ slicing machine - 2

v Potato peeling machine - 2

v il sieve - 2
v Diesel furnace - 2
v Frying pan - 2
v Pouch sealing machine - 2
v Stainless Steel working tables (3' x 8') - 10
v DG Set (10 HP) - 1
v Miscellaneous equipment and assets

The processing plant and machinery may be procured from the Indian manufacturers and
suppliers. The cost for above plant and machinery including foundation, erection and
commissioning is estimated at 177222422

&$#!&%

(a) Raw material:Most of the raw materials may either be available locally or may be
procured directly from the markets or through the agents. High quality potato supply can
be ensured from Shimla(KUFRI) & other nearby districts of U.P.
(b)Banana varieties for chips purpose can be procured at a reduced cost from agents having
efficient supply chain management system linked with efficient banana producing
regions.
(c) ther Inputs: ther inputs like packaging material, salt, spices, vegetable oils, chemicals,
etc. may be procured from the local market.
(d)ouality Control:The process must ensure the in-house quality control by using the
quality raw material and standard manufacturing processes and obtain FP license.
:; !#!!
v Water:The total water requirement of the project will be about 5000 litres per
day. Proper arrangement for the required supply of water must be made.
v Power:The maximum power requirement for the processing unit will be about 10
 HP. Proper power connection along with the standby arrangement is required to
be done.
v Manpower:The unit will require a manager, 2 skilled and 4 unskilled labourers.
Êlso provision for security and appropriate number of marketing personnel
should be made.
v Packaging material:The finished product has to be packed in the polyethene
pouches, which may be procured locally.

$.!&%

Marketing Êrrangement: The product is becoming popular among the rural masses and
marketing arrangement may be made in the nearby rural as well as urban areas. The &!%
can be tied up with the existing market network of #', !#$'!. and
with the reputed supply chains to meet the domestic needs.

- !#

There is no harmful effluent from the unit. The organic wastes like potato and banana peels etc.
are decomposable and bio-degradeable and hence the disposal of the same will not be a problem.
However, the disposal of the waste from the site to a !"# !% % or
<&!%!#"4


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!#!#

The estimated project cost for the model is  +)23182 including one month working capital
requirement of 5>182 capitalized fully. The details of outlay are summarised below:

c!# ?!:4;
Land 50000
Land Development 50000
Buildings and civil structures 1400000
Plant and Machinery 488000
Misc. Fixed Êssets 50000
Working capital 67490
Total project cost +)23182

@&!%!#

The average operating cycle of the unit will be one month and the monthly working capital
requirement of the unit is Rs 67490 and the same will be fully capitalized.


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The project is found to generate adequate surplus and the scheme is financially viable. The
financial parameters in brief are as under :

!;c@)B01502>3

!!; B34>>6

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! ;/
)43B)

;'!>'!#! )'%

!;C!826 "&#4 

!!;&- c!324B6

!!!;%!#726

'*The period of loan will vary between 5 years to 10 years depending on the cash
flow. The repayment period may include a grace period (to be decided by the financing bank as
per the individual scheme) of a maximum of 2 years.


c ,-
 
.A  (Êmount Rs)
Cost
Sl.No. Particulars ouantity
Considered
1 Land
Cost of land including registration
0.25
(limited to the extent of 10 % of the 50000
Êcre
project cost)
2 Land Development 50000
3 Civil Structures
Buildings (40 m X 10 m) 1400000
Plant and machinery(includes
4 488000
erection&commissioning)
5 Miscllanious fixed assets 50000
Working capital requirement for
6 67490
one month capitalised fully
Total project cost 2105490
Margin Money 25.00% 526373
Bank loan 75.00% 1579118
/-
 .
 c.
/
( Êmount Rs )
 -A
Plant &
Sl.No. ouantity Rate (Rs) Êmount
Machinery
Chips making
machine
1 2 50000 100000
(Slicing
machine)
Potato peeling
2 2 30000 60000
machine
3 il Sieve 2 20000 40000
4 Disel furnace 2 25000 50000
5 Frying pan 2 11000 22000
Pouch sealing
6 2 8000 16000
machine
Working tables
7 SS 3' X 8' (6 10 5000 50000
Nos)
8 DG Set (10 HP) 1 50000 50000
9 Miscelleneous LS 50000
Errection and
10 LS 50000
commissioning
Grand total 488000
@ ( c
.-C --
(Êmount Rs.)
Particulars Working capital requirement during first year
Raw material
Total 40000
Edible oil 3040
Power and fuel 3800
Packaing material 1900
Salary and wages 14583
Êdministrative expenses (TÊ,printing and
4167
stationery, P&T, advertisement etc)
Total 67490
!"##$*?!!"#!!!%# 

1. Name of the unit: ÊHMÊD & S N¶s CHIPS

2. The !%! is concerned with the production of "!.
3. The area required for the plant is 40m x 10m. This area can be extended, if required in
future.
14 The # #! is selected in the !#   ! %0 .&$0 
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5. The banana varieties procured for chips manufacturing includes Nendran, Cavendish &
Pachabale. It can be purchased in bulk by middle men & vendors with efficient supply chain
system.
6. The potato varieties for chips manufacturing includes Chipsona-1, Chipsona-2, Kufri Jyoti
& Kufri Chandramukhi. It can be procured from hilly regions of Uttar Pradesh or from
nearby locations.
7. 75% of the total cost of the project is financed by bank and 25% of own investment.
Interest charged is @ of 12% per annum.
8. Value added disposal & utilization of wastes in the form of manures/compost etc.
9. The processing unit will operate in a single shift and ensures production of 0.8MT of chips
per day.
10.The total project cost is around Rs.32,000,00.
11.NÊME F PR M TER: FÊIZ ÊHMÊD