POTATO / BANANA CHIPS

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Introduction Snack foods have become very popular among all age groups in Mauritius and its popularity is growing day by day. Mauritius consumption of snack foods (both imported and locally produced) was estimated to be around Rs 15 mn in ! ". # variety of snack foods are presently available at reasonable prices but potato $ banana chips have gained popularity during the past years. %hey have great potential for growth due to their immense popularity and nutritional aspects.

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Raw Materials Required &otatoes and bananas which are readily available in Mauritius are the main ingredients re'uired for making banana $ potato chips. (ther ingredients needed are cooking oils) turmeric powder and salt.

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Manufacturing Process &otatoes $ bananas should be washed and sliced. %hen they should be dipped in brine water to avoid o+idation. Sometimes) turmeric powder is also used for colouring the chips or to improve colour. %he chips are fried in vegetable oil) cooled to room temperature. %hese chips are then packed in polythene bags of suitable gauge to prevent spoilage. ,t is highly advisable to use packaging materials which are appealing to customers.

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Qualit Control Strict 'uality control norms and hygienic conditions as per .ealth regulations will have to be maintained at every stage in the production process. #ll ingredients used and e+piry date will have to be clearly spelt out on each packed snack food. %he entrepreneurs should also possess a /ood .andler 0ertificate from the Ministry of .ealth

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Tec!nical Training and Su""ort #ll information relating to the technical aspect including processing) lab facilitation) training) 'uality) etc can be obtained from #R12) MS3 and S1.4#.

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Mar#ets .uge scope e+ist for banana $ potato chips as these ready6to6eat snacks are much popular among students and the general public. %hey could be sold to hotels) restaurants) shops and supermarkets.

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$sti%ated Cost of t!e Pro&ect Machinery and Equipment (ne /rying &an (5 litres capacity) /ive stainless steel trays (ne .eat sealing machine (ne #brasion &eeler ! Slicers ! 7ashing %anks %otal %ables and 0hairs &re6operational e+penses 7orking 0apital TOTA' (Rs) 5) 5) 5) 5) !) *) 6666666666666666666 !5) 6666666666666666666 5) 5) 6666666666666666666 "")8"5 6666666666666666666 (()*+,99999999999

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.inancing Structure /inance to meet the cost of the pro:ect could be met through; &ersonal contribution 43M Micro 0redit TOTA' *<)*"5 "5) 66666666666 (()*+,9999999

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Pro&ected Turno/er

Potato / Banana C!i"s *5 kgs of banana chips at Rs 1! kg (1 kg9!- packets at Rs 5 per packet) *5 kgs of potato chips at Rs 1! kg (1 kg 9 !- packets at Rs 5 per packet) TOTA' 1 .

Mont!l -!) -!) +)*000

Annuall 5 -) 5 -) (*00+*000

A 1etailed Brea#down of Mont!l $2"enses (7orking 0apital) Salaries of ! part6time workers and 1 full time employee Rent Raw Materials 15 kgs potatos (- kgs for 1kg chip) at Rs 15 per kg 15 kgs bananas (- kgs for 1kg chip) at Rs 15 per kg !-".5 kg edible oil ( .** kg for 1 kg chip) at Rs 5 per kg (ther ingredients = plastic bags 1lectricity $ (water$telephone) %ravelling 1+penses (/uel costs) Miscellaneous 1+penses (>.&./ contribution etc.) %(%#? Rs !-) Rs !-) Rs 1!)*"5 Rs 1) Rs 1)5 Rs 1)5 Rs 1)5 6666666666666 Rs "")8"5 99999999 Rs 11) Rs 1)

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.inancial Anal sis

7ith an e+pected turnover of Rs 1) 8) from the sale of potato$banana chips in the first year of operation and total e+penses forecasted at Rs <58)55 during the same period assuming other factors constant) a net profit of Rs -<)*5 is forecasted. %his represents a rate of return of -!.<@ on investment. 1!. Co%%ents %his pro:ect could help housewives) unemployed and redundant 1&A and sugar industry workers start their own business as it re'uires little finance. 1*. I%"le%entation Sc!edule

&ro:ect implementation will take a period of ! months. # break up of the activities and estimated relative time for each activity is shown belowB Ti%e .ra%e 3usiness registration at the Registrar of 3usiness Registration at S1.4# #pproval$&ermits for a 3?.& (if necessary) at the Municipality$4istrict 0ouncil &reparation $ #pproval of 3usiness &lan Sanction of financial support 0ommissioning and installation of machinery %rial run and production B B B B B B B 1 4ay 1 4ay *615 days 1 week 1 month ! weeks 1 week

1stimated &rofit C ?oss #$c for the 1st year of operation Rs %otal Revenue pro:ected form the sale of banana$ &otato chips ?ess 4irect 1+penses on raw materials other ,ngredients used Dross &rofit (verheads Rent (Rs 1 monthly) Salaries of ! part6time workers and 1 full time employee (RS 11) ) 1lectricity) water) telephone ?icense /ees Miscellaneous 1+penses including (>.&./ contribution etc.) %ravelling 1+penses (/uel costs) 4epreciation (15@) 3ank charges (<@) Total >et &rofit (before ta+) 1!) 1-*) 18) !)5 18) 18) *)< 5)"5 66666666666666 333*(-0 66666666666666 -<)*5 1) 8)

"*5)5 66666666666666 !"1)5 66666666666666

NOT$4

It is to be underlined that this project profile is meant to facilitate decision making by entrepreneurs at the time of identifying business ideas. The exercise is based on a number of assumptions which may vary from business to business. As such every attempt has been made to provide as far as possible correct information and figures. However, implementation of the project and the operation of the business will depend upon a number of factors, including, the skills of the entrepreneur, uality of products and marketing strategy. The authors do not bear responsibility for changes witnessed during the implementation and operation.

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