Starting a Business of Potato, Banana and Other Chips: How to Being?


Hi, I want to start a potato chips factory. Please throw some light on the following:

  • How to start this business?
  • What are the requirements for starting this business?
  • Where can I get potato chips making machine?
  • How do I get in touch with distributors?


Potato chips is arguably the most consumed snacks in India. In a country where food preferences change with the change of state borders, liking for potato chips has transcended the barrier of borders and has become the personal favorite of all and sundry including diabetics.

It is precisely because of this staggering demand that, lesser known brands have managed to compete with bigger brands and survive in the market. So, starting a potato chip business is risk free and promising in all respects. If you can take care of two aspects i.e. quality and marketing running this business successfully won’t take much of an effort.

What You Need for Starting a Chips Business

Firstly, you need to have a business plan ready. Your plan must take your expenses into consideration. As it usually happens, your outlay may not be sufficient. So it is very important to have additional funding ready so that if your finances fall short your plans don’t get stalled.

 Once this is in place, you are in a better position to launch your business.

An important aspect of this business is to get a complete overview of the competition. This will give you an idea of how to market your product. If you have the same approach as your competitors have, you may not stand to gain much. But knowing their approach can help you devise one that is different and effective. This aspect requires lot of researching. You need to talk to shopkeepers, businessmen and even marketing agencies to gather ideas. All this can help you make up your mind on how to go about marketing your product.

The last hurdle is in finalizing the location of your business. It is advisable not to hire a place. This may prove costly especially if your business fails to take off. Instead, if your business makes a good start, you always have the chance to dream big. However, choosing your home for starting the business may not always be feasible because it is subject to clearance of license and permits from the government.

Choosing the right technique to prepare the chips can help you distinguish your products from your competitors. You need to take the views of chefs to know exactly how you can come out with a product that tastes good and may be at a lesser cost. This is a crucial part of the business as taste is what ultimately matters in the market. Well known brands have managed to carve out a space in the market not just because of their marketing strategies but also because of the flavor that they add to their products. You need to decide how to make your product tastier and this may require a lot of permutation and combination. Give importance to local tastes so that you can get a foothold in the local market. It is safe to launch three or more flavors as it would help you know how the market reacts to your products.  No sooner than a particular flavor clicks you get an idea on how to steer your business.

Few more tips for newcomers in this field:

Keep low profit margins in the beginning. Instead, allow the retailer to make most of the profit. This strategy would make retailers go out of their way to push your product in the market.

Starting a potato chips business calls for lot of market research. If you do your home work well there is no reason as to why you shouldn’t succeed in this business.

2 thoughts on “Starting a Business of Potato, Banana and Other Chips: How to Being?

  1. Abhishek Reply

    It is a good information. Please post some business ideas for person who has good experience in technical field, but does not have any job at the moment. I want to start some business without investment or very low investment.

  2. saranraj.g Reply

    Dear Sir, Nice article. I have few questions, I want to start exporting banana and potato chips.
    1. How to get orders from other countries, is there any online way we can do this?
    2. How to know the demand in other countries, I want that list.
    3. What legal formalities I have to complete, before I legitimately export food items?
    4. What is the quality check usually other county do before they import my products.

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