Chips and crisps factory

Study request

Capital

rate of return

Recovery period Third year

Project Description

Feasibility study for a chips and crisps factory: It is a factory for producing potato chips (chips) and crisps in different sizes (15 grams, 18 grams, 26 grams, 135 grams, 150 grams, 185 grams, 190 grams and jumbo). <Potato chips are an important and necessary snack that I cannot do without. Chips are made using potatoes.<Where it is peeled and cut into small slices and chips, then the frying process is done, and then some preservatives, spices and flavour enhancers are added to it. <Chips are considered one of the products that are consumed on a daily basis and are in great demand, especially among children and youth. The factory targets many sectors such as supermarkets, hypermarkets, wholesale and retail stores.<The demand for the factory’s products is also increasing and continuous due to the increase in population numbers in addition to the high rates of food consumption from projects with economic returns.

Project services

15g chips bags.
18g chips bags.
26g chips bags.
135g chips bags.
150g chips bags.
185g chips bags.
190g chips bags.
Jumbo bags.
popcorn.

Why Mashroo3k ?

Mashroo3k has over 11 years of experience in preparing feasibility studies, conducting market research, and providing comprehensive consulting services.
Mashroo3k has offices in 7 international branches, located in Saudi Arabia, the UAE, Egypt, Qatar, Oman, Yemen, and Iraq, in addition to its agents in China, Singapore, and other countries.
Having delivered over 7,000 feasibility studies, Mashroo3k has helped thousands of clients achieve their investment goals.
Mashroo3k’s services are accredited and trusted by all financial institutions and funding entities across the Middle East.
The company’s geographic reach spans 35 countries across all continents.
Mashroo3k holds membership in over 100 prestigious international organizations specializing in market research and business management.
Its team consists of 350 consultants with deep expertise in promising economic sectors, ensuring tailored solutions and strategies that meet clients’ needs.
Mashroo3k is partnered with more than 10,200 suppliers across 22 countries, providing logistical support for projects, including production lines, raw materials, machinery, and equipment.
With an extensive database, Mashroo3k enhances the accuracy of its forecasts and analyses, strengthening its risk management capabilities.

Production of potato chips by exploiting the available resources in the Hail region, as it is one of the important agricultural regions and has the availability of raw materials (potatoes).
Creating new investment opportunities with good returns.
Achieving a good return for the project owner.
Employing workers and improving their economic and social level.
Achieving good returns, cash flows and added economic value.
Optimal use of project resources and assets.
Achieving a high level of quality.
Maintaining a competitive price level enables the project to obtain its target share.
Contribute to covering part of the increasing demand for potato chips.
Using the latest technologies in the field of potato chips manufacturing and training workers on them.

Executive Summary

About the project
Financial Indicators
Rationale for the project
Government investment incentives in the project field
Target Markets
Project indicators and final results

Study of project services/products

Project description and all its products/services.
Project advantages and production requirements.

Market size study.

Understanding distribution channels.
Consumer behavior, preferences, and tendencies.
Competitors’ products or services, along with their strengths and weaknesses.
Market nature and its characteristics.
The demand size for the offered product or service.
The available share of the target market.
The optimal marketing strategy.

Risk assessment study.

Risk identification.
The impact of risks on the project.
Risk prevention methods.

Technical study

A detailed description of the project’s products, expected production capacity, and determination of investment costs.
Determining the required electricity and water capacity.
Determining the project’s labor requirements.
Determining the project’s requirements.
Calculating construction and building costs.
Calculating the total capital
Determining the annual operating costs.
Determining the amount of working capital.

Financial study.

Total investment costs required for the project.
Organizing cash flow statements, income statements, and the balance sheet for the first ten years of operation.
Determine the expected annual revenues of the project in light of the specified operational capacities
The optimal financing structure for the project in light of investors’ capabilities and financing conditions.
The project’s financial indicators and sensitivity analysis.

Organizational and administrative study.

Project workforce.
Organizational structure.
Job responsibilities.

he GCC countries comprise 0.7% of the world’s population; however, they account for 3% of global spending on processed food and beverages, amounting to $102 billion out of a total of $3.4 trillion. This indicates a high per capita food consumption in the region, exceeding the global average.
This is not surprising upon closer examination, as the population of the GCC now exceeds 58 million, with approximately 56.3% of them falling within the 25–54 age group. This key demographic is the driving force behind the food industry market, as it is the most dynamic and youthful segment.
Since Saudi Arabia alone accounts for about 59.7% of the total GCC population and holds over 53% of the food and beverage market share, “Mashroo3k” has decided to present key indicators of this vital market in the Kingdom, based on the latest available statistics.

until the end of the second quarter of 2021. The number of food product manufacturing factories was estimated at around 916, with 249 factories under construction. As for beverage manufacturing factories, there were 209 operational factories, while 71 were still under construction.
Food product manufacturing factories account for 11.1% of the total number of operational and productive factories (8,258 factories), while beverage manufacturing factories represent 2.5% of the total number of factories in the Kingdom.
The food and beverage market in Saudi Arabia is estimated to be around 168.8 billion SAR.
By the end of 2021, the total food consumption in Saudi Arabia reached 221 billion SAR, reflecting a 6% growth rate.
According to global reports, food consumption in Saudi Arabia is valued at $70 billion, accounting for 60% of total food consumption in the Gulf region.
The fast food market in Saudi Arabia is expected to reach $4.5 billion in the next three years.

The market size of organic, healthy, and specialty foods in Saudi Arabia has reached $27 billion, while the halal food market is valued at $6 billion.
Saudi Arabia’s imports of food and beverages are estimated at approximately $14.5 billion annually.
In 2020. The operational expenses for food and beverage service activities were estimated at approximately 34.03 billion SAR, noting that these expenses did not exceed 30.07 billion SAR in 2018.
The operational revenues for food and beverage service activities were estimated at approximately 61.56 billion SAR in 2020, compared to 54.87 billion SAR in 2018.
The operational expenses for food and beverage service activities are expected to reach 52.49 billion SAR by 2027, while the operational revenues for the same activities are projected to reach 92.08 billion SAR.
The total expected operational revenues for the food product manufacturing industry in Saudi Arabia in 2027 are estimated at 128.54 billion SAR.