Potato Chips Manufacturing Unit in Pakistan

2 February 2017

So we would like to produce salted chips that would cover 50% of our production. The rest of the production would have other flavors like chili, tomato ketchup etc. Packaging Packaging is important as company must know that how much quantity should be sellable in one packet. Packet Size| Production Mix| Market Selling Price(Rs. )| 15 grams| 65%| 10| 25 grams| 35%| 25| Plant Capacity Plant capacity refers to the number of units that can be manufactured during a given period. It is also called production capacity.

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Potato chips manufacturing plant has a capacity of 150 kg per hour. As initial year it would be hard to assume that plant is able to work at its full capacity so we consider that initially plant will operate only 50% of its capacity. At least six years are required by the plant to work at maximum capacity that is 90%. Location and Sites Location is very important as it reduces your cost and adds your profitability. Location should be decided on the factors like raw materials, labor availability, as well as government policy. The proposed location for the project is Karachi.

However other areas are Lahore or Islamabad but we would like to set our industry in Lahore due to following reasons: Raw Materials: Raw materials are easily available. Infrastructure: adequate supply of utilities is important for project. Moreover transportation cost would also be lower if we choose Karachi. Low labor wage rate: wage rate is low as compared to other areas. These two conditions satisfied our location that’s why we have chosen Lahore for setting our industry. Moreover other factors that are involved are labor that is available at cheaper rate at Lahore. Machineries and Equipment

In order to setup the machines we require different types of machines like: 1. Washing & Shelling Machine – For washing of Fresh Potatoes 2. Peeling Machine – For peeling of Potatoes 3. Slicing Machine – For slicing Potatoes into Chips 4. Chips Washing Machine – For washing and rinsing of Potato Chips in hot water for excessive starch removal before frying 5. Flavoring Machine – For flavoring fried chips 6. Packing Machine – For packing Finished Potato Chips in packets Production Process FLOW Peeling machine that removes covers of potatoes and potatoes get washed in washing machine.

Then potatoes pass goes through slicing machine that break them into thin pieces of slices and then they again wash in chips manufacturing machines. The reason of giving another wash is for removing starch. Then it goes from frying process. Newly made Potato chips pass through drum filled with the desired powdered seasoning that provide flavor to them. In order to make chips cool, they go through chips cooling machine and from there they are shifted to the packing department. Procurement All the machines required for the project are imported from China. Working capital requirements:

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