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Business ideaFood processing

Potato Chips (Wafer) Making Business

आलू चिप्स बनाने का व्यवसाय · बटाटा वेफर्स उद्योग

Peel, slice, fry and season potato wafers in a small unit and sell fresh local chips to shops, bakeries and your own counter.

₹5–10 lakhPrices not yet confirmed with suppliers

Investment

₹7.2 lakh

Profit a month*

₹31,000

Space
800 sq ft
Staff
4 + you

*Operating profit before the loan instalment in year 2, at the assumed sales level. Change the assumptions in the calculator below.

A small chips unit peels and slices potatoes, washes off the starch, removes surface water, fries the slices in batches, seasons them and packs them. Fresh local wafers, sold loose or in simple pouches, have loyal buyers in most towns even with national brands in every shop. It suits someone who can run a hot, oily production floor and deliver to shops every few days. Money is made on fresh taste, larger packs and a retail counter. The hard parts are getting potatoes that fry well through the year, edible-oil prices, chips going soft or rancid within weeks, and brands that sell at ₹5 and ₹10 price points you cannot match.

Skills needed: Frying judgement (temperature, timing, potato quality), hygiene and local selling.

Profit calculator

Change the numbers to match your town

83 kg/day: Potato wafers, packed (salted and masala)

Total investment

₹7.22 lakh

Your own money

₹72,249

Subsidy

—

Bank loan

₹6.5 lakh

Mudra Tarun

A typical month in year 2

Sales₹4,12,500
Raw material & packing−₹3,03,188
Electricity−₹4,795
Salaries−₹48,300
Rent−₹12,600
Other running costs−₹12,600
Operating profit₹31,018
Loan instalment (EMI)−₹15,161
You keep each month₹15,856

After the loan is repaid, the EMI becomes your income too. Your own salary is not counted as a cost: the profit is your income.

Break-even at 44% capacityDSCR 2.87 (banks like ≥1.5)Payback ≈ 2.6 years

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Investment breakdown

Machinery & equipmentPrice
Potato peeler and slicer (3-in-1 chips machine)Semi-automatic, 1 HP₹75,000₹43,000–₹1.25 lakh
Frying kadai with burner (bhatti) × 2Manual batch frying; a circular batch fryer costs ₹4 lakh and up₹60,000
Dewatering / oil extractor (hydro) machine × 2One before frying for water, one after for oil₹80,000
Masala coating drum₹21,500₹19,000–₹40,000
Band sealer with nitrogen flushing₹60,000
Weighing scales (platform + table)₹9,000₹6,000–₹15,000
Washing tubs, tables, trays and crates₹40,000
Exhaust fans and chimney₹25,000
Machinery & equipment (without add-ons)₹3,70,500
FSSAI, Udyam and other registrations₹5,000
Pouch design and printing cylinders₹20,000
Gas line, water line and electricity wiring₹25,000
Trial batches and samples₹10,000
Working capital 10 days of raw material, 12 days of credit to buyers, 1 month of expenses₹2,91,993
Total project cost₹7,22,493

Typical market prices as of October 2026, from supplier listings. Prices vary by brand, capacity and city; always get 2–3 quotes.

Cost and margin per unit

Potato wafers, packed (salted and masala) (per kg)₹
Potatoes (about 4 kg at ₹18/kg for 1 kg of chips)72.00
Frying oil absorbed and discarded (about 0.38 litre at ₹130)49.00
Salt and seasoning6.00
Pouches and cartons12.00
LPG or diesel for frying8.00
Material cost147.00
Selling price200.00
Margin before running costs53.00 (27%)

Wholesale rate for local wafers in 200 g–1 kg packs; check your market. The potato needed per kilo of chips depends on the variety and its dry matter, so test before fixing prices.

Space, power and staff

800 sq ft

Rented shed · rent ≈ ₹12,000/month

Small-town or city-outskirts rent. Needs plenty of water, drainage for starchy wash water and a cool, dry potato store.

5 kW, single-phase

Bill ≈ ₹7,000/month at full capacity

4 staff + you

  • 1 × Frying operator: ₹14,000
  • 2 × Peeling, slicing and packing helpers: ₹10,000
  • 1 × Sales and delivery: ₹12,000

Licences and registrations

FSSAI registration / licence

mandatory

When: Before you sell · Cost: ₹100/yr for basic registration; state licence ₹2,000–5,000/yr above the turnover limit

The turnover limit for basic registration was reported to be raised in 2026. Check the current limit on foscos.fssai.gov.in.

Udyam registration

recommended

When: Before applying for a loan · Cost: Free

Needed for schemes such as PMFME as well. Apply only on udyamregistration.gov.in.

GST registration

if applicable

When: When turnover crosses the registration limit, or a buyer insists · Cost: Free

GST on packed chips was changed in the 2025 rate revision. Confirm the current rate and the registration limit with a CA.

Legal Metrology packer registration

if applicable

When: Before selling pre-packed pouches with MRP · Cost: Varies by state

Local body trade licence and fire safety

if applicable

When: Before starting frying operations · Cost: Varies by municipality

Pollution control consent

if applicable

When: If your state asks for it for food units with wash-water discharge · Cost: Varies by state

How it works

  1. Sort potatoes; peel and wash.
  2. Slice evenly and wash the slices to remove surface starch.
  3. Spin off water in the dewatering machine.
  4. Fry in small batches at steady temperature until crisp and light-coloured.
  5. Spin off excess oil, season in the coating drum and cool.
  6. Weigh, pack (with nitrogen if possible) and seal.

Loan route

Mudra loan (Tarun)

Own money ₹72,249 · Loan ₹6.5 lakh · EMI ≈ ₹15,161

No collateral, no subsidy.

How Mudra works

PMEGP (new units)

Subsidy ₹1.08 lakh (general, urban) to ₹2.53 lakh (special category, rural). EMI ≈ ₹12,634–₹10,107.

Own money 5–10%. Subsidy is held as a 3-year deposit, then adjusted against the loan.

How PMEGP works

Assumes 10.5% interest, 5 years including a 6-month moratorium. PMEGP was approved up to FY 2025-26. Check on the KVIC PMEGP portal that applications are open before you plan around the subsidy.

No collateral and no third-party guarantee (covered by the Credit Guarantee Fund for Micro Units).

Who buys and how to sell

Buyers

  • Kirana shops, bakeries and sweet marts
  • Your own retail counter
  • Canteens, bars and caterers
  • Fasting-food buyers (upvas wafers)
  • Wholesalers in nearby towns

Ways to sell

  • Delivery to shops every few days
  • A counter at the unit
  • Bulk loose supply to canteens and caterers

Season: Sells all year; fasting periods such as Shravan and Navratri lift demand for plain wafers. Fresh-harvest potatoes (roughly January–March) fry best; cold-store potatoes later in the year can brown.

Competition: National brands own the ₹5–₹20 packs. Local units sell on fresh taste, thicker cut, bigger packs and banana or other regional chips alongside.

Risks and how to handle them

Potatoes with high sugar turn brown and bitter when fried

Buy chipping varieties, test-fry every lot before buying in bulk and avoid long-stored cold-store potatoes.

Chips turn soft or rancid before they sell

Remove excess oil, pack cool with good pouches and nitrogen, and supply small lots often.

Oil and potato prices swing

Revise wholesale rates quickly and keep pack weights flexible.

Burns and fire from hot oil

Keep extinguishers and a fire blanket near fryers, and never overfill kadais.

Tips from the trade

  • Test-fry a kilo from every potato lot; one bad lot can spoil a week's sales.
  • Adding banana chips or sabudana items uses the same fryers in slack periods.
  • PMFME offers a credit-linked subsidy for micro food units; ask your district resource person.

Questions people ask

Which potato is best for chips?+

Chipping varieties with high dry matter and low sugar fry crisp and light. Ask local traders for the chipping varieties sold in your mandi and always test-fry.

Why do packed chips have so much air?+

The pouch is filled with nitrogen to keep chips crisp and stop the oil turning rancid, and the cushion prevents breakage.

How much investment is needed to start a potato chips (wafer) making business?+

About ₹7.22 lakh for a small unit: ₹3.71 lakh for machinery and equipment, ₹60,000 for set-up costs and ₹2.92 lakh as working capital (stock, credit to buyers and one month of expenses). Prices as of October 2026.

How much profit can a potato chips (wafer) making business make per month?+

At 55% of capacity, sales are about ₹4.13 lakh a month and operating profit about ₹31,018 before the loan instalment. After an EMI of about ₹15,161, the owner keeps about ₹15,856 a month until the loan is repaid. These are estimates; your prices, rent and sales decide the real figure.

Which machines are needed for potato chips (wafer) making?+

Potato peeler and slicer (3-in-1 chips machine) (₹43,000–₹1.25 lakh); Frying kadai with burner (bhatti) (about ₹30,000); Dewatering / oil extractor (hydro) machine (about ₹40,000); Masala coating drum (₹19,000–₹40,000); Band sealer with nitrogen flushing (about ₹60,000).

Can I get a Mudra loan or PMEGP subsidy for potato chips (wafer) making?+

With a project cost of about ₹7.22 lakh, the bank loan of about ₹6.5 lakh falls under Mudra Tarun. Mudra has no subsidy. As a new unit you may instead apply under PMEGP, where the subsidy is 15–35% of the project cost (up to about ₹2.53 lakh here for a special-category applicant in a rural area). PMEGP was approved up to FY 2025-26. Check on the KVIC PMEGP portal that applications are open before you plan around the subsidy.

What licences are required for potato chips (wafer) making?+

Mandatory: FSSAI registration / licence. Depending on your set-up you may also need: Udyam registration, GST registration, Legal Metrology packer registration, Local body trade licence and fire safety, Pollution control consent.

Similar businesses

Sources

Prices as of October 2026. Prices here come from online listings and published guides and have not yet been confirmed with local suppliers. Profit figures are estimates from the assumptions above, not a promise of income.

Spotted an outdated price? Tell us. Data for this page: HowIndiaEarns.