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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