§1What this business is

Good unripe bananas are washed, peeled, sliced, blanched and dried, deep-fried, de-oiled, seasoned with salt or spices, cooled and packed. Weight loss in processing is 15–20%, says the KVIC profile. Banana chips have a loyal set of buyers and fewer big brands than potato chips.

Capacity: KVIC small unit: 24 tonnes a year. KVIC big unit: 50 tonnes a year. Samadhan: 150 kg a day (10-hour shift), 60% in year 1.

§2Is it right for you?

Who it is for

Someone in a banana-growing area with links to snack shops, sweet shops and distributors.

Who it is not for

Someone who cannot keep consistent taste, crispness and packing.

Advantages

  • Popular snack eaten all year
  • Fewer big brands than potato chips, says the KVIC profile
  • Can start very small (₹4.55 L)
  • Raw bananas are available all year in growing regions

Drawbacks

  • Fried snacks have a short shelf life and go rancid if packed badly
  • Oil is a big cost and its price moves
  • Many small local makers compete on price
  • Hygiene and frying-oil quality need watching

Skills you need

  • Slicing and frying control
  • Seasoning recipes
  • Packing for shelf life
  • Distribution to shops

Why difficulty 2/5: Simple, well-known process; taste, hygiene and selling decide success.

§3Market

Who buys

  • Snack eaters of all ages
  • Kirana, bakery and sweet shops
  • Supermarkets

How it sells

  • Distributors and wholesalers
  • Direct supply to local shops

Good to know

  • The Samadhan report says India's snack food market grows 7–8% a year and the traditional banana chips industry is worth around ₹750 crore.
  • It names Tamil Nadu, Maharashtra, Andhra Pradesh, Gujarat, Bihar and Karnataka as major banana states, and notes APEDA plans a ripening centre at Kaushambi (UP).

§4Raw material & machinery

ItemQtyCost
KVIC small unit: banana peeling machine (1), fruit washing tanks (2), slicers (2), gas furnace with burners / bhatti (1), frying pans (2), SS utensils (4), weighing scales, bag sealing machines1 set₹1,55,000
KVIC big unit: peeling machines (3), washing tanks (4), slicers (4), gas furnaces (2), frying pans (4), SS utensils (10), weighing scales, sealing machines1 set₹5,00,000
Washing tank (Samadhan)1₹2,00,000
Slicing machine (Samadhan)1₹30,000
Hydro extractor (Samadhan)1₹40,000
Batch fryer (Samadhan)1₹2,70,000
De-oiling machine (Samadhan)1₹1,30,000
Spice coating machine (Samadhan)1₹50,000
Packaging machine (Samadhan)1₹1,40,000
Other tools and equipment (Samadhan)—₹40,000

From: KVIC Project Profile — Banana Chips (PMEGP) · KVIC Project Profile — Banana Chips (Big Unit) (PMEGP) · PMEGP sample project report — Banana Chips Making (prepared by Udyami/Samadhan)

  • Raw (unripe) bananasripe or damaged bananas are removed at inspection; KVIC small unit raw material ₹6,10,000 a year, big unit ₹15,00,000
  • Cooking oil (sunflower or coconut)for deep frying
  • Salt and spicesseasoning
  • Packing materiallabels and packing ₹45,000 a year in each KVIC profile

From: KVIC Project Profile — Banana Chips (PMEGP) · PMEGP sample project report — Banana Chips Making (prepared by Udyami/Samadhan) · KVIC Project Profile — Banana Chips (Big Unit) (PMEGP)

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In our raw material database

Banana →

§5Licences & registration

  1. FSSAI licence or registration
  2. Udyam registration
  3. GST registration
  4. Trade licence from the local body
  5. Fire safety clearance where LPG or gas furnaces are used, as required locally

We can do this registration for you

§6Schemes & subsidies

PMFME fits snack processing; PMEGP (all three reports were prepared for it), MUDRA, CGTMSE, and in UP CM-YUVA for the ₹4.55 L small unit.

§7Money

How the investment is worked out: KVIC small unit: workshed ₹2.50 L + equipment ₹1.55 L + working capital ₹0.50 L = ₹4.55 L. KVIC big unit: workshed ₹2.50 L + equipment ₹5.00 L + working capital ₹5.00 L = ₹12.50 L. Samadhan report: plant and machinery ₹9.00 L + furniture ₹1.00 L + working capital ₹4.62 L = ₹14.62 L.

Working capital: KVIC small ₹0.50 L, big ₹5.00 L; Samadhan ₹4.62 L (bank ₹4.16 L) with 15 days of bananas and finished chips.

Years not printed on these reports — check current machinery and raw-material prices.

How to prepare a loan file

§8Export potential

Export council / board: APEDA

  • The project report prints no HS code; look up the 8-digit ITC(HS) line on the DGFT website or with a customs broker before exporting.
  • You need an Import Export Code (IEC) from DGFT before the first shipment.

§9Risks — where people fail

  • Oil and banana price rise
  • Rancid stock from poor packing
  • Food safety lapses
  • Price competition

§1030 / 60 / 90-day plan

A general plan that applies to any business. A plan for this business will be added after research.

  1. Days 1–30: Visit a working banana chips unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
  2. Days 31–60: Udyam and the licences you need (FSSAI licence or registration, Udyam registration), a project report (DPR), and the scheme or loan file.
  3. Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.

§11Who to connect with

Not verified yet

Associations, clusters and training institutes — the directory is being built. Connect

§12Watch

There is no episode on this business yet. Shows are coming soon on the Podcast page.

Want to start Banana Chips?

DPR, loan file or registration — ask us on WhatsApp.

Get a DPR / loan file made

Sources

  1. KVIC Project Profile — Banana Chips (PMEGP)
  2. PMEGP sample project report — Banana Chips Making (prepared by Udyami/Samadhan)
  3. KVIC Project Profile — Banana Chips (Big Unit) (PMEGP)

Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.