The document proposes starting a potato and banana chip business in Mauritius. It discusses raw materials, manufacturing process, quality control, technical training support, markets, costs, financing structure, projected profits, and implementation schedule. The business would produce 350kg each of potato and banana chips per month for total annual sales of 1,008,000 rupees and net annual profit of 49,350 rupees. Startup costs are estimated at 114,875 rupees to be financed through personal contribution and a microcredit loan.

1. POTATO / BANANA CHIPS
1. 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 150 mn in 2007.
A variety of snack foods are presently available at reasonable prices but potato /
banana chips have gained popularity during the past years. They have great
potential for growth due to their immense popularity and nutritional aspects.
2. Raw Materials Required
Potatoes and bananas which are readily available in Mauritius are the main
ingredients required for making banana / potato chips. Other ingredients needed
are cooking oils, turmeric powder and salt.
3. Manufacturing Process
Potatoes / bananas should be washed and sliced. Then they should be dipped in
brine water to avoid oxidation. Sometimes, turmeric powder is also used for
colouring the chips or to improve colour. The chips are fried in vegetable oil,
cooled to room temperature. These chips are then packed in polythene bags of
suitable gauge to prevent spoilage. It is highly advisable to use packaging
materials which are appealing to customers.
4. Quality Control
Strict quality control norms and hygienic conditions as per Health regulations will
have to be maintained at every stage in the production process. All ingredients
used and expiry date will have to be clearly spelt out on each packed snack food.
The entrepreneurs should also possess a Food Handler Certificate from the
Ministry of Health

2. 5. Technical Training and Support
All information relating to the technical aspect including processing, lab
facilitation, training, quality, etc can be obtained from AREU, MSB and SEHDA.
6. Markets
Huge scope exist for banana / potato chips as these ready-to-eat snacks are
much popular among students and the general public. They could be sold to
hotels, restaurants, shops and supermarkets.
7. Estimated Cost of the Project
Machinery and Equipment (Rs)
One Frying Pan (50 litres capacity) 5,000
Five stainless steel trays 5,000
One Heat sealing machine 5,000
One Abrasion Peeler 6,000
2 Slicers 2,000
2 Washing Tanks 3,000
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Total 26,000
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Tables and Chairs 6,000
Pre-operational expenses 5,000
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Working Capital 77,875
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TOTAL 114,875
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3. 8. Financing Structure
Finance to meet the cost of the project could be met through”
Personal contribution 39,375
DBM Micro Credit 75,000
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TOTAL 114,875
=======
9. Projected Turnover
Potato / Banana Chips Monthly Annually
350 kgs of banana chips at Rs 120 kg
(1 kg=24 packets at Rs 5 per packet)
42,000 504,000
350 kgs of potato chips at Rs 120 kg (1
kg = 24 packets at Rs 5 per packet)
42,000 504,000
TOTAL 84,000 1,008,000
10. A Detailed Breakdown of Monthly Expenses (Working Capital)
Salaries of 2 part-time workers and 1 full time employee Rs 11,000
Rent Rs 1,000
Raw Materials
1500 kgs potatos (4 kgs for 1kg chip) at Rs 16 per kg Rs 24,000
1500 kgs bananas (4 kgs for 1kg chip) at Rs 16 per kg Rs 24,000
247.5 kg edible oil (0.33 kg for 1 kg chip) at Rs 50 per kg Rs 12,375
Other ingredients + plastic bags Rs 1,000
Electricity / (water/telephone) Rs 1,500
Travelling Expenses (Fuel costs) Rs 1,500
Miscellaneous Expenses (N.P.F contribution etc.) Rs 1,500
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TOTAL Rs 77,875
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4. 11. Financial Analysis
With an expected turnover of Rs 1,008,000 from the sale of potato/banana chips
in the first year of operation and total expenses forecasted at Rs 958,650 during the
same period assuming other factors constant, a net profit of Rs 49,350 is forecasted.
This represents a rate of return of 42.9% on investment.
12. Comments
This project could help housewives, unemployed and redundant EPZ and sugar
industry workers start their own business as it requires little finance.
13. Implementation Schedule
Project implementation will take a period of 2 months. A break up of the activities
and estimated relative time for each activity is shown below:
Time Frame
 Business registration at the Registrar of Business : 1 Day
 Registration at SEHDA : 1 Day
 Approval/Permits for a BL.P (if necessary) at the : 3-15 days
 Municipality/District Council
 Preparation / Approval of Business Plan : 1 week
 Sanction of financial support : 1 month
 Commissioning and installation of machinery : 2 weeks
 Trial run and production : 1 week

5. Estimated Profit & Loss A/c for the 1st
year of operation
Rs
Total Revenue projected form the sale of banana/ 1,008,000
Potato chips
Less Direct Expenses on raw materials other 736,500
Ingredients used
--------------
Gross Profit 271,500
--------------
Overheads
Rent (Rs 1000 monthly) 12,000
Salaries of 2 part-time workers and 143,000
1 full time employee (RS 11,000)
Electricity, water, telephone 18,000
License Fees 2,500
Miscellaneous Expenses including 18,000
(N.P.F contribution etc.)
Travelling Expenses (Fuel costs) 18,000
Depreciation (15%) 3,900
Bank charges (9%) 6,750
--------------
Total 222,150
--------------
Net Profit (before tax) 49,350
NOTE: 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,
quality of products and marketing strategy. The authors do not bear
responsibility for changes witnessed during the implementation and
operation.
25 January 2008

6. Estimated Profit & Loss A/c for the 1st
year of operation
Rs
Total Revenue projected form the sale of banana/ 1,008,000
Potato chips
Less Direct Expenses on raw materials other 736,500
Ingredients used
--------------
Gross Profit 271,500
--------------
Overheads
Rent (Rs 1000 monthly) 12,000
Salaries of 2 part-time workers and 143,000
1 full time employee (RS 11,000)
Electricity, water, telephone 18,000
License Fees 2,500
Miscellaneous Expenses including 18,000
(N.P.F contribution etc.)
Travelling Expenses (Fuel costs) 18,000
Depreciation (15%) 3,900
Bank charges (9%) 6,750
--------------
Total 222,150
--------------
Net Profit (before tax) 49,350
NOTE: 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,
quality of products and marketing strategy. The authors do not bear
responsibility for changes witnessed during the implementation and
operation.
25 January 2008