New Startup Potato Flakes: Meeting the Demand for Convenience Foods
The global demand for convenience food products continues to rise, fueled by busy lifestyles and the growth of the fast-food industry. Potato flakes serve as a crucial ingredient in snack foods, ready meals, and the food service industry. This report explores the financial and operational aspects of establishing a potato flakes manufacturing plant.
Market Potential
Potato flakes are integral to various convenience food products, making them a valuable commodity in the food industry.
Technical Feasibility
Raw Materials
- Potatoes: Primary raw material for potato flakes production.
Production Process
- Peeling and Slicing: Potatoes are peeled and sliced.
- Blanching: The slices are blanched to deactivate enzymes.
- Drying: The blanched slices are dried to remove moisture.
- Flaking: The dried slices are ground into flakes.
- Packaging: The flakes are packaged for distribution.
Plant Layout and Machinery A typical plant layout includes:
- Peeling and Slicing Unit
- Blanching Unit
- Drying Unit
- Flaking Unit
- Packaging Unit
Financial Analysis
Total Project Cost
- Land and Site Development: ₹7 crore
- Plant and Machinery: ₹42 crore
- Installation and Erection: ₹7 crore
- Preliminary and Pre-operative Expenses: ₹7 crore
- Working Capital: ₹7 crore
- Total Estimated Cost: ₹70 crore
Revenue Generation Revenue from the sale of potato flakes is estimated based on market rates.
Cost of Production
- Raw Material Cost: ₹14 crore per annum
- Operating Expenses: ₹7 crore per annum
- Maintenance and Utilities: ₹3.5 crore per annum
Profitability Analysis
- Total Annual Revenue: ₹98 crore
- Annual Expenses: ₹24.5 crore
- Net Profit: ₹73.5 crore
- Rate of Return: 18%
- DSCR: 1.7
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