How to Start Banana Chips Manufacturing Business

Do you want to start a small-scale banana wafer manufacturing factory? Find here a detailed banana chips making business project sample profile. The article includes the machine details, production process, project cost, raw materials, and license requirements.

Basically, chips are the ready-to-eat popular food item. It comes under the FMCG segment. Like the potato chips, the demand for good quality banana chips is increasing especially in the urban areas. Also, the small towns and suburbs are the emerging market for the banana chips.

Generally, people consume the banana wafers as snacks food. In India, Tamil Nadu, Maharashtra, Andhra Pradesh, Gujarat, Bihar, and Karnataka are the major banana producing states. As the shelf life of a ripe banana is very low, it is an excellent item for preservation too.

If you live in a banana producing area, then you can definitely consider initiating this business. The most interesting thing is the project requires a very small amount of capital investment. Also, you need a small space for the unit operation.

8 Steps Guide to Start a Banana Chips Making Business

Step 1: Analyze the Banana Chips Market

Overall the banana chips are the very popular food item. However, you need to find out what are the established brands. Also, check their packaging style, quantity packing, and MRP. Definitely, you can study the local market and online marketplaces too. These will help you in taking necessary decisions in establishing your unit.

Step 2: Craft the Banana Chips Business Plan or Project Report

After getting the sufficient information, you will need to craft the business plan or project report. Basically, a project report helps in getting finance from the banks and in initiating the project smoothly. Broadly, a project report includes two different parts. These are technical aspects and financial analysis. The cost involvement depends on the technical aspects heavily. Here, we have provided a sample project cost format for your ready reference.

Banana Chips Project Cost 

  1. Land and Building = On lease
  2. Plant machinery = 4.290 Lakh
  3. Laboratory equipment = 0.600 Lakh
  4. Transport vehicle = 4.600
  5. Cost of power connection = 0.100 Lakh
  6. Cost of electrification = 0.100 Lakh
  7. Erection and commissioning = 0.300 Lakh
  8. Cost of machinery spares = 0.100 Lakh
  9. Cost of office equipment = 1.000 Lakh
  10. Company formation expenses = 0.100 Lakh
  11. Gestation period expenses = 0.300 Lakh
  12. Initial advertisement and publicity = 9.000 Lakh
  13. Contingencies = 0.500 Lakh

The figures may vary depending on the unit size.

Step 3: Arrange Finance

After getting the entire project cost, you can concentrate on arranging the capital. You can apply for both the fixed cost and working capital cost. Otherwise, you can also apply for one of them. If you want financial assistance only for machinery buying, then apply for machinery hypothecation. Also, check if there any Govt. subsidy is available for this project.

Step 4: Licensing & Registration

First of all, you will need to form the business organization. For the small-scale operation, you can go for proprietorship or LLP or Pvt. Ltd company. Get the Trade License from the local Municipal Authority. Also, register with MSME online registration.

In starting the banana chips making business, you will need to obtain the FSSAI registration. Also, apply for BIS registration to maintain the quality standard. You must maintain the quality specification according to the BIS notification. Apply for the NOC from the State Pollution Control Board. You can secure the brand name of the company through the Trademark Registration. Finally, apply for the GSTIN for tax payment.

Step 5: Unit Establishment

The entire project implementation may take 6 months of time. The first step is securing an appropriate land with a covered area. Generally, you can operate a small-scale unit with a 1000 Sq Ft of covered area. If you don’t have your own space, it’s better to start the unit in a lease area. You have to do the electrification work. Ensure the adequate amount of water supply and good transport facility.

Step 6: Banana Wafers Machine

Now, you have to procure the machinery. If you are a beginner, start the unit as the small-scale basis. As your business grows, you can convert it to a fully-automatic banana chips making unit. Some of the basic machinery list you can follow here.

  1. Washing tank
  2. Peeling knives
  3. Slicing machine
  4. Rinsing and spinning machine
  5. Batch frier
  6. Spice coating pan
  7. Sealing machine with inert gas flushing arrangement
  8. Laboratory equipment

Step 7: Raw Materials

The major raw material is the raw banana. Also, you need cooking oil, salt, and spices. Additionally, you need the packaging consumables. In the retail packing, you will need to maintain the inside moisture content of the product. You can use heavy layer corrugated cartoons for the bulk packaging

Step 8: Banana Chips Production Process

First of all, procure the good quality banana. Wash the raw banana thoroughly to remove any adhering dirt or sand. Peel the skin manually and slice the fruit with the thickness ranging from 1.8 mm to 2.5 mm.

Then dip the slices into a blanching tank to remove surface starches and prevent browning at the time of frying. The slices are subjected to centrifugal spinning in the spinner whereby excess moisture is
removed. Finally, fry the slices in medium hot oil to give golden brown chips. Drain the excess oil from the chips. Then the chips are dusted with salt and spices in the coating pan before being packed. The product is flushed with nitrogen gas in the pouch so as to prevent the development of rancidity.

Generally, the retail distribution is the best way to capturing the market in the FMCG segment. Also, you can concentrate on the institutional sales. To get the long-term success in the banana chips manufacturing business, you must ensure the sustainable sales vloume throughout the year.