Potato
Processing
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September 2010 |
1.0 Product and Applications
Potatoes are grown all over the country
with concentration in Uttar Pradesh. It is probably the most
popular food item of Indian diet. It is a rich source of starch
and contains phosphorus, calcium, iron and vitamins. Apart
fro using fresh potatoes in vegetables and gravy they are
dehydrated in the forms of slices and sticks, cubes or powder
to impart better shelf life. Yet another popular use is to
make wafers or chips to be consumed as snacks. Potatoes are
grown and used in the Indian culinary since centuries with
many end uses as stated.
Fresh potatoes have very limited shelf life, but processed
properly packed can be stored over a long period. Under the
present conditions and with know- how developed by CFTRI value
addition is possible and it is possible to store it over a
long period. The technology is available with CFTRI. Compliance
with PFA Act for such a unit is essential.
2.0 Industry Profile and Market Assessment
Potato is a vegetarian delicacy and is
a part of almost all Indian culinary dishes. It is easily
digestible. It is also consumed in process form as a snack
food. Their shelf life is enhanced by processing and properly
packing in good quality polythene. This can then be stored
and transported for selling in far of markets. It is a very
popular item in most of the star hotels and in urban households.
The processed potato in the form of chips has a good market
in metropolitan cities and centre for tourists. The rural
rich with changing lifestyle are also catching up with the
urban tastes and eating habits. Processed and preserved potato
ensures the availability through out the year. It is a good
substitute as a snack food and is very popular among children.
Competitive pricing and easy availability will create its
own market. The local manufacturer will have to compete with
international brands and pricing will be its advantage.
3.0 Manufacturing Process & Know
How
Fully grown and ripe potatoes are thoroughly
washed before peeling them. Then these potatoes are trimmed
and put in brine water for 30-35 minutes to prevent browning.
They are afterwards cut in the required sizes on slicing machine.
These slices are then blanched in boiling water and are then
placed on drying trays which are then put in the drying machine.
The temperature of the dryer is maintained in the range of
140 to 150 F. After drying they are fried in edible oil to
make them crisp and brown and packed in polythene bags. The
chips could be salty or spiced. Some other flavours which
are locally popular can also be tried. The process flow chart
is as under:

Process Flow Chart
Know how is available with
Central Government research Laboratories. The machinery is
all indigenously available.
The production capacity envisaged is 40 tonnes per year. It
is assumed that the unit will achieve a capacity utilization
of 60% during the first year.
4. Plant and
Machinery: The main plant
and machinery required for a capacity of 40 tons per year
working for 300 days on Two shift basis shall comprise
- SS slicer
with attachments - 1 nos.
- Electrically
operated drier with trolleys - 1nos.
- Coal fired
furnace. - 1nos
- Motorised
potato peeling machine - 1 nos
- Automatic
sealing machine - 1 nos
- Cutting peeling
knives,aluminium utensils, weighing scales - 1 nos.
The total cost
of machinery is estimated to be Rs.1.80 lakhs.
The unit will also require miscellaneous assets such as furniture,
fixtures, storage facilities etc. the total cost of these
is estimated to be Rs. 0.35 lakhs.
The total requirement of power shall be 10 HP, the unit will
need 1000 lts.of water daily and coal about 1 ton per month.
5. Raw material and Packing Material:
The all important raw material
is good quality potato. Potatoes have high water content.
Hence total loss during process shall be almost 30%. Potatoes
are readily available hence procurement will not be a problem.
Other ingredients like salt, spices etc can be easily procured
from local market. Packing items like plastic bags and corrugated
boxes, labels, strapping etc will be required.
The total cost of raw material and packing material at full
capacity is estimated to be Rs. 7.26 lakhs. The total requirement
for potato is estimated to be 58 tons. at 100% capacity. At
60% capacity in 1st year the total cost of raw material works
out to Rs 4.35 lakhs.
6. Land and Building:
For smooth operation of the unit, it will require 200 sq.
mts of open land and a built up area of 100 sq. mts. The total
cost of land and building is estimated at Rs. 3.10 lakhs.
7. Manpower:
For smooth functioning of the unit the
requirement of man power is expected to be around 8 persons.
| Sales person |
self |
| Skilled Workers |
2 |
| Semi skilled workers |
2 |
| Helpers |
2 |
The annual salary bill is estimated to be around Rs.1.26 lakhs.
8. Sales Revenue: (100% capacity)
Selling price varies depending on the product quality and demand.
An average price of Rs 55,000/- per tonne has been taken. the
annual income at 100% capacity is Rs 22.00 lakhs.
10. Cost of Project
| Sales |
Rs. lakhs |
| Land & Building |
3.10 |
| Plant & Machinery |
1.80 |
| Other assets |
0.35 |
| Contingencies |
0.50 |
| P & P expenses |
0.35 |
| Margin money |
0.49 |
| Total |
6.59 |
Means of Finance
| Promoters Contribution
|
1.89 |
| Term Loan |
4.70 |
| Total |
6.59 |
11. Profitability: (60%capacity)
| |
Rs. lakhs |
| Sales |
13.20 |
| Raw material |
4.35 |
| Salary |
1.26 |
| Utilities |
0.30 |
| Stores & Spares |
0.18 |
| Repairs & Maintenance |
0.24 |
| Selling expenses |
3.30 |
| Administrative expenses
|
0.36 |
| Depreciation |
0.68 |
| Interest on T.L |
0.46 |
| Interest on W.C |
0.13 |
| Cost of production |
11.26 |
| Profit |
1.94 |
12. Requirement of Working Capital
| |
|
Margin |
W.C |
Margin Money |
| Packing material |
½month |
25% |
0.18 |
0.05 |
| Stock of finished goods
|
½ month |
25% |
0.28 |
0.07 |
| Working expenses |
1 month |
100% |
0.20 |
0.20 |
| Sale on credit |
½ month |
25% |
0.70 |
0.17 |
| Margin money for W.C |
|
|
|
0.49 |
13. Break Even point
33%
14. Machinery Suppliers :
a. M/S Archana
machinery stores Guwahati.
b. M/sEast End Engineering Co. Gopal Rai Thakur Road Kolkata
700035.
c. M/S Industrial Equipment Guwahati.
d. M/S Cowel Can Ltd. Barotiwala, Dist Solan,
e. M/S Laxicon Engg. Sita Bardi, Nagpur
f. FMC Technologies Hong Kong Ltd. Bhubaneshwar Housing Society
Pashan Road Pune..
Contact for more information:
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com

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