FEASIBILITY REPORT
ON
POTATO CHIPS MANUFACTURING UNIT
In partial fulfillment of
Entrepreneurship & Management of Innovations
SUBMITTED TO:-
Sir. A.R ZAKI
SUBMITTED BY: - SEEMA BANO. 32
AMNAH ABBAS. 04
JAVERIYA HASSAN. 13
KARACHI UNIVERSITY BUSINESS SCHOOL(KUBS)
PROJECT PROFILE
The project describes setting up a Potato Chips Manufacturing Unit in any big city of Pakistan. The unit will produce a variety of flavored, premium quality potato chips in two standard packet sizes: 15gms and 25gms.
There is huge demand of Potato Chips (Snacks Food Industry) in and outside Pakistan; therefore a sizeable production is required. The production capacity of is 150 kg per plant hour of finished potato chips, which is the minimum size for a Chips Manufacturing Unit. The unit will be working in two shifts.
Table 1 Project Cost | Rupees | Capital Investment Requirement | 36,886,430 | Working Capital Requirements | 26,650,806 | Total Project Investment Requirement | 63,537,236 |
Table 2 Project Financing | Percentage | Rupees | Debt | 50% | 31,768,618 | Equity | 50% | 31,768,618 | Total Project Investment | | 63,537,236 |
PAKISTAN POTATO PRODUCTION1
Pakistan is one of the largest potato producing countries, yet it has very limited adequate storage and processing facilities, due to which a substantial proportion of production is wasted. The combination of inadequate storage facilities and an under-developed processing industry leads to volatility in prices, given that not all of the excess production can be stored or processed for consumption during the off-season. The following analysis will illustrate the current state of the potato production in Pakistan.
Pakistan annually produces about 2 million tons of potatoes. Though varying from year to year, area and production of potatoes in Pakistan have exhibited an increasing trend over the past 8 years (Table 3)
Table 3 Area and Production of Potatoes for the