§1What this business is

Potatoes are washed, peeled, sliced thin, blanched, fried, salted or flavoured and packed in sealed bags; banana wafers are made the same way. The KVIC profiles cover small units with a peeler, slicer, fryer and bag sealer; the Samadhan report covers a semi-automatic line with grader, de-stoner, peeler, slicer and de-oiling conveyor.

Capacity: KVIC small unit: 118 quintals a year. Samadhan: machine rated at 300 kg an hour, 5,76,000 kg a year; year 1 planned at 2,88,000 kg (50%).

§2Is it right for you?

Who it is for

Someone in a potato-growing area with links to local snack shops and wholesalers.

Who it is not for

Someone who cannot manage oil hygiene, packing and daily selling.

Advantages

  • Chips are among the best-selling snacks everywhere
  • Turns surplus potatoes into a longer-life product
  • A small start is possible with the KVIC-size units
  • Banana wafers can be made on the same equipment

Drawbacks

  • Thin margin in the Samadhan plan (about 3–4% net)
  • Big brands and many local makers compete
  • Frying oil cost and oil quality need watching
  • Needs the right potato variety or chips turn brown

Skills you need

  • Frying temperature and oil control
  • Choosing the right potato variety
  • Hygiene and packing
  • Retail distribution

Why difficulty 2/5: Simple process; margins depend on buying raw material well and selling steadily.

§3Market

Who buys

  • Kirana and general stores
  • Bakeries and sweet shops
  • Canteens, hotels and travel points

How it sells

  • Distributors and wholesalers
  • Direct supply to shops
  • Own brand

Good to know

  • The KVIC wafers profile says about 25% of potatoes are spoiled by poor transport, packing and a shortage of cold storage, and processing can save them.
  • The Samadhan report sells chips at ₹42 per kg in year 1.

§4Raw material & machinery

ItemQtyCost
Boiler, steam-jacketed kettle, potato peeling machine, pouch sealing machine, frying pan1 lot₹1,50,000
Potato peeler, power slicing machine, hydro extractor with motor, deep fat fryer, bag sealing machine, salting drum (one each)1 lot₹1,50,000
Line: hopper with metered feeder, grader, de-stoner, peeler, inspection conveyor, slicer, de-oiling conveyor, heat exchanger1 set₹10,75,000 + GST ₹1,93,500 = ₹12,68,500

From: KVIC Project Profile — Potato Chips/Wafer Manufacturing (PMEGP) · KVIC Project Profile — Potato/Banana Wafers (PMEGP) · PMEGP sample project report — Potato Chips (prepared by Udyami/Samadhan)

  • Potatoeslarge, oval, fully mature, few eyes (KVIC wafers profile)
  • Raw bananasfor banana wafers (KVIC wafers profile)
  • Potato, oil and spices₹30 per kg average in the Samadhan report
  • Labels and packing material₹1.00 L a year in the KVIC wafers profile; ₹50,000 in the small KVIC unit

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

Suppliers in Building Business Bazaar

B. Sen Barry and Co · Delhi →Batliboi and Co. Ltd · Mumbai →Canon Engg · Bhubaneswar →Chemical Equipt & Linings · Chennai →Chemplast · Mumbai →Fun Snacks Pvt.Ltd · Delhi →Gardeners Corporation · Delhi →Guru Nanak Engg. Corporation · Hyderabad →H and P Industries · Thrissur →Jyothi Industries · Bengaluru →Kanoi Engg.& Industries Ltd · Kolkata →Kilco Perfect Machine Traders · Thrissur →

In our raw material database

Potato →Crude palm oil (CPO) →Crude sunflower oil →

§5Licences & registration

  1. FSSAI licence or registration
  2. Udyam registration
  3. GST
  4. Pollution control board consent where required
  5. Fire NOC
  6. Legal Metrology registration for packed goods
  7. Trademark for the brand

We can do this registration for you

§6Schemes & subsidies

All sizes fit PMEGP and PMFME (food processing). The ₹3.385 L unit fits CM-YUVA (UP) and MUDRA; CGTMSE for the Samadhan-size plant.

§7Money

How the investment is worked out: KVIC chips/wafers ₹3.385 L: shed 500 sq ft ₹1.00 L + equipment ₹1.50 L + working capital ₹0.885 L. KVIC potato/banana wafers ₹10.38 L: workshed 100 sq m ₹4.13 L + equipment ₹1.50 L + working capital ₹4.75 L. Samadhan ₹13.69 L as printed (machinery ₹12.69 L incl. GST + furniture ₹1.00 L); its cost table adds working capital ₹7.78 L for a total of ₹21.47 L.

Working capital: KVIC small unit ₹88,500; KVIC wafers ₹4.75 L; Samadhan ₹7.78 L (bank limit ₹7 L).

The KVIC profiles have no year; the Samadhan report quotes market data for 2018–2024 — check current machinery prices.

How to prepare a loan file

§8Export potential

Confirm the HS code in the DGFT ITC(HS) lookup before you export

2005.20Potatoes, prepared or preserved otherwise than by vinegar or acetic acid, not frozen

Export council / board: APEDA

  • HS codes are from the WCO HS 2022 list; confirm the 8-digit ITC(HS) line with DGFT or your customs broker.
  • You need an Import Export Code (IEC) from DGFT before the first shipment.

§9Risks — where people fail

  • Rise in potato and edible-oil prices
  • Rancid or soggy stock coming back
  • Food safety action over reused oil
  • Price war with local brands

§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 potato chips and wafers 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 Potato Chips and Wafers?

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

Get a DPR / loan file made

Sources

  1. KVIC Project Profile — Potato Chips/Wafer Manufacturing (PMEGP)
  2. PMEGP sample project report — Potato Chips (prepared by Udyami/Samadhan)
  3. KVIC Project Profile — Potato/Banana Wafers (PMEGP)

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