POTATO CHIPS MAKING INTRODUCTION: India is one of ... - smallB

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PROCESS :The main process steps in the production of potato chips are –(A. Visual inspection and sorting of potatoes;(B. Washing;(C. Peeling and trimming;(D. Slicing and cutting;(E. Washing, sorting and dewatering;(F. Frying;(G. Cooling, salting and packing.MACHINERY:The main equipment required are –(A. Potato peeling machine cap. 40/50 kg per hour with 0.5 HP motor.(B. Slicing machine with arrangement to adjust thickness of slice complete withmotor etc.(C. Blancher(D. Spin dryer to extract excess moisture cap.4kg/charge taking 3 to 4 minutescomplete with motor.(E. Deep fat fryer(F. Electric polythene bag sealing machine upto 30cm wide.(G. Weighing machine.INFRASTRUCTURE:The main infrastructure requirements are –Shed : 1000 sq.ft.Power : 2.5 KWWater : 1600 ltrs/day.LOCATION:Keeping in view the availability of potatoes, the following locations are suggested.Assam : Barpeta, Mankachar, Tezpur, LakhimpurDibrugarh, Jorhat, Nagaon, Silchar.Meghalaya : Shillong, Tura, Williamnagar, Nongstoin,Jowai.Tripura : AgartalaArunachal Pradesh : TawangNagaland : Kohima, Mokokchung.Sikkim : Rumitek, Dentam, Brang, SomgochooTOTAL CAPITAL REQUIREMENT:The total capital requirement including fixed capital and working capital is estimated at Rs 4.29lakh as follows. Of this, the project cost comprising fixed capital and margin money on workingcapital is Rs 3.59 lakh.(Rs. lakhs)(A. Fixed Capital:Land and BuildingPlant & Machinery 2.25Misc. Fixed Assets 0.50Preliminary & Pre-operative expenses 0.45Total (A) 3.20B. Working Capital:Raw materials 7 days 0.12Packing material 2 months 0.08Stock of finished goods 7 days 0.19Working expenses 1 month 0.16Receivables 15 month 0.54185On rentTotal (B) 1.09Grand Total (A+B) 4.29 lakh
Note: Working capital may be financed as –Bank Finance: 0.70 lakhMargin Money: 0.39 lakhMEANS OF FINANCE:Promoter’s contribution and equity assistance (35%)Term Loan (65%)TotalRs 1.26 lakhRs 2.33 lakhRs 3.59 lakhOPERATING EXPENSESThe annual operating expenses are estimated at Rs 9.25 lakh as given below:Raw materials and consumables –(Rs. lakh)Potato 50,000 kg. 2.34[ (a) 33000 kg @ Rs 4/kg.for 8 months and(b) 17000 kg @Rs 6/kg.for 4 months]Edible oil 4000 Ltrs@ Rs 55/Ltr. 2.20Additives, flavours, chemicals 0.40Packing materials –Polythene bags, tin containers 0.50Utilities 0.40Wages & salaries 1.50Rent 0.36Other overheads 0.40Selling expenses @ 5% on sales 0.53Interest on term loan @12% 0.28Interest on bank finance @15% 0.11for working capitalDepreciation 0.23Total 9.25SALES REALIZATION:Sales realization of 6300 kg of Potato chips @ Rs 170/- per kg would be Rs 10.71 lakh.PROFITABILITY:Based on the sales realization and the operating expenses, the profit (pre-tax) at rated capacitywould be Rs 1.46 lakh per year. This works out to a return on investment of 34%. The plant wouldbreak even at about 46% of the rated capacity.HIGHLIGHTS:The major highlights of the projects are as follows:Total Capital requirement : Rs 4.29 lakhPromoter’s contribution : Rs 1.26 lakhAnnual Sales realization : Rs 10.71 lakhAnnual operating expenses : Rs 9.25 lakhAnnual Profit (Pre-tax) : Rs 1.46 lakhPre-tax return on sales : 14%Break-Even Point : 46%Number of persons employed : 4 Nos.186
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POTATO CHIPS MAKING INTRODUCTION: India is one of ... - smallB

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