Garlic Fries Manufacturing Plant Project Report 2025

The growing market for garlic fries is significantly influenced by the rising establishment of fast-food restaurants in various countries, including the United States, India, Australia, and France. In the United States, there are approximately 50,000 fast-food restaurants, with popular chains such as McDonald's, Starbucks, Chick-fil-A, and Taco Bell leading the way. India is also experiencing rapid growth in the fast-food sector, with around 10,000 outlets, featuring brands like Domino's, Burger Singh, and KFC. In Australia, approximately 3,000 fast-food restaurants are present, including well-known names like Hungry Jack's (Burger King) and Red Rooster. France has about 6,000 fast-food establishments, where chains like Quick and McDonald's are popular. This proliferation of fast-food outlets across these countries creates a robust market for garlic fries and similar snack items as consumer demand for convenient and flavourful food options is rising.

Another significant factor contributing to the robust production of garlic fries is the favorable garlic production landscape. In India, garlic production reached approximately 25,563 thousand metric tons in 2024, with Madhya Pradesh leading at 13,616 thousand metric tons. Other major producers include Rajasthan (4,776 thousand metric tons) and Uttar Pradesh (2,177 thousand metric tons). This abundant supply of garlic supports the growing demand for garlic fries, as manufacturers can easily source high-quality garlic for their products. Additionally, the geographical distribution of garlic cultivation ensures consistent availability across regions, further bolstering production capabilities.

Other elements to consider while establishing a garlic fries plant include raw material sourcing, workforce planning, and packaging. The production of garlic fries relies on key raw materials, including potatoes, garlic, and oil. Russet potatoes are commonly used for their crispiness and are sourced from local farms or larger agricultural suppliers. Fresh garlic, often sourced from regions like California and India, help enhance the taste, while oils such as vegetable, olive, and beef oil are selected based on cooking methods. Seasonings like salt and herbs are also added to elevate taste. With the recent increase in potato sales, manufacturers have better access to these ingredients, allowing them to meet growing consumer demand for garlic fries effectively.

Moreover, to help stakeholders determine the economics of a garlic fries’ plant, project funding, capital investments, and operating expenses are analyzed. Projections for income and expenditure, along with a detailed breakdown of fixed and variable costs, direct and indirect expenses, and profit and loss analysis, enable stakeholders to comprehend the financial health and sustainability of a business. These projections serve as a strategic tool for evaluating future profitability, assessing cash flow needs, and identifying potential financial risks.

However, challenges such as supply chain disruptions and fluctuating yields may threaten supply stability for garlic. To combat this, manufacturers of garlic fries can diversify their sourcing strategies by establishing relationships with multiple suppliers and incorporating imported garlic when necessary. This approach can mitigate supply chain risks by ensuring a consistent flow of garlic, even during periods of domestic shortages or increased demand. Contract farming has also played a crucial role in ensuring a steady supply of suitable potatoes for processing potato based products. HyFun Foods has effectively implemented a contract farming model in Gujarat to secure a consistent supply of Santana and Frysona variety potatoes, which are ideal for French fries’ production. In the 2023-24 season, the company successfully procured 300,000 tons of processing-grade potatoes from around 6,000 farmers. Looking ahead, HyFun is aiming to increase procurement to 400,000 tons from 7,250 farmers in the upcoming season. This model ensures a reliable supply chain of potato products, including frozen fries.

About Garlic Fries

Garlic fries have transformed traditional French fries into a flavour-packed snack that appeals to a wide range of consumers. The preparation involves deep-frying potatoes until they achieve a golden, crispy texture, followed by tossing them in a savory sauce made from garlic, butter, olive oil, and often enhanced with seasonings like parsley or Parmesan cheese. This combination not only satisfies the palate but also caters to the growing demand for unique and gourmet snack options.

The origins of garlic fries can be traced back to the early 1990s when they were first introduced at the San Francisco Giants' stadium, quickly becoming a staple in the Bay Area's food scene. Their popularity has since expanded across the United States and internationally, with numerous variations emerging that cater to regional tastes, such as the addition of truffle oil, mayonnaise, chilli oil, or roasted garlic. This adaptability has positioned garlic fries as a conventional offering in restaurants, food trucks, and sporting venues. As consumer preferences continue to shift towards bold flavours, garlic fries are well-poised to capture market share in the competitive snack food landscape.

Properties of Garlic Fries

Garlic fries are known for their crispy exterior and a fluffy interior, resulting from a two-step frying process: starch gelatinization occurs at around 150°C (302°F), followed by surface crisping at approximately 180°C (356°F). Typically, the moisture content of freshly fried fries is about 70%, which decreases to around 5% after frying, contributing to their crunchiness. Garlic fries contain sulfur compounds from garlic, such as allicin (C₆H₁₀OS₂), responsible for their pungent taste and aroma. The Maillard reaction, which occurs at temperatures above 140°C (284°F), produces complex flavours and the characteristic golden-brown color. Additionally, garlic fries may contain acrylamide (C₃H₅NO), a compound formed during high-temperature cooking. Levels can range from 100 to 1,000 µg/kg, depending on preparation methods and frying duration.

Manufacturing Process of Garlic Fries

The production process of garlic fries begins with the selection of fresh potatoes and garlic. First, the potatoes are peeled and sliced into thin strips, typically around 1/4 inch thick. To prevent browning and enhance texture, the sliced potatoes are soaked in a solution of water, salt, and lemon juice for about 30 minutes. After soaking, the potato strips are thoroughly dried using towels to remove excess moisture. The frying process consists of two stages. In the first frying, the potato strips are deep-fried at approximately 180°C (356°F) for about 4 to 5 minutes until they achieve a golden-brown colour. After this initial frying, the fries are allowed to cool for a few minutes before undergoing a second frying at the same temperature to achieve extra crispiness. Once perfectly fried, the hot fries are tossed in a flavorful mixture of melted butter, minced garlic (typically about 2-3 cloves per serving), and seasonings such as chopped parsley or grated Parmesan cheese. This process contributes to the creation of quality garlic fries.

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Applications and Drivers of Garlic Fries

One significant driver increasing demand for garlic fries is the expansion of the fast-food and quick-service restaurant (QSR) industry, where garlic fries have become a popular menu item, appealing to consumers seeking alternatives to traditional salty or peri-peri fries. Major fast-food chains, including McDonald's, Burger King, Wendy's, and KFC, prominently feature French fries on their menus, with reports indicating that around 80% of French fries consumed in the U.S. come from fast-food outlets. The rise of busy lifestyles has led to a greater inclination towards convenience foods.

As per industry reports, over 60% of households globally are engaging in cooking at home, which has increased the popularity of ready-to-eat snacks like garlic fries. This trend is further supported by the growing online food delivery market, making it easier for consumers to access garlic fries from various eateries, particularly in urban and suburban areas. Additionally, the influence of Western cuisine has significantly contributed to the rising popularity of garlic fries. Companies like Amul have entered this market by introducing frozen potato products such as French fries in India. Furthermore, the expansion of online food delivery services like Swiggy, Zomato, and Uber Eats has made it easier for consumers to order garlic fries from their favourite restaurants. This accessibility caters to the growing demand for quick-service meals.

Key Features of the Garlic Fries Production Cost Report

A detailed overview of production cost analysis that evaluates the manufacturing process of garlic fries is crucial for stakeholders considering entry into this sector. Furthermore, stakeholders can make informed decisions based on the latest economic data, technological innovations, production process, requirements of raw materials, utility and operating costs, capital investments by major players, pricing strategies, and profit margins. For instance, in the July to September 2024 period, U.S. retail sales volume of potatoes increased by 5.4%, with all categories, including fresh potatoes, chips, frozen potatoes, and refrigerated potatoes, experiencing volume increases of over 5%. Notably, frozen potatoes recorded the largest volume increase at 6.6%, followed closely by chips at 6.5%. Fresh potatoes also performed well with a volume increase of 5.0%. Russet potatoes, which constitute 65% of fresh volume sales, experienced a significant rise of 10.6%. Fresh dollar sales for yellow, petite, medley, and fingerling potatoes increased by 5.6%, 1.7%, 5.1%, and 5.4%, respectively. This increase in U.S. retail potato sales positively impacts garlic fry makers by enhancing ingredient availability and market demand. Also, the growing popularity of potato-based items suggests a favourable environment for garlic fries, allowing for potential product innovation and market expansion.

Below are the sections that further detail the comprehensive scope of the prefeasibility report for a garlic fries production plant:

Market Dynamics and Trends: Factors such as growing consumer demand for traditional cooking fats are significantly affecting market conditions in the garlic fries sector. Steak 'n Shake has announced that by the end of February 2025, all its locations will switch to using 100% beef tallow for frying its signature shoestring fries, replacing vegetable oils. This decision aims to enhance the taste and quality of their fries, aligning with a growing consumer demand for traditional cooking fats. Historically, beef tallow was the go-to frying fat for many fast-food establishments until it was largely replaced by vegetable oils. Robert F. Kennedy Jr., recently nominated as Secretary of Health and Human Services, has been a vocal advocate for reintroducing beef tallow into cooking, arguing against the health implications of seed oils. This shift may not only impact Steak 'n Shake's fries but could also encourage other fast-food chains to reevaluate their frying practices. Understanding these trends helps businesses determine production strategies.

Geographical Analysis: India has successfully transitioned from being an importer to a significant exporter of French fries, largely due to the implementation of contract farming and direct engagement with farmers. As of the 2023-24 season, India exported 135,877 tons of French fries valued at approximately Rs 1,478.73 crore. Notably, during the first half of the 2024 fiscal year (April-October), exports reached 106,506 tons, worth about Rs 1,056.92 crore. Major export destinations include Southeast Asia (e.g., Philippines and Thailand), the Middle East (e.g., Saudi Arabia), and countries like Japan and Taiwan.

HyFun Foods exported around 85,000 tons of French fries and significantly contributing to India's overall exports. Other notable exporters include Iscon Balaji Foods, Funwave Foods, ChillFill Foods, and J.R. Simplot. In contrast to these export figures, India's domestic consumption of French fries has been estimated at around 100,000 tons, primarily supplied to fast-food chains such as McDonald's and KFC for serving salted, cheesy, peri-peri, and garlic fries.

Profiling of Key Industry Players: Leading manufacturers like Himalaya Food International Ltd., Allana Consumer Products, McCains Foods, and Cavendish Farms are included in the garlic fries report. These players are focusing on improving their market presence by increasing their production capacities. Recently, Himalaya Food International announced plans to launch a 60,000 TPA French fry plant by March 2025, signaling a significant expansion in their production capabilities. Similarly, Allana Consumer Products has invested INR 300 crore in a new plant in Uttar Pradesh for French fries and frozen potatoes production. The facility aims to produce 50,000 tons annually, supporting the rising demand for frozen potato products in India and international markets. These developments highlight the growing interest and investment in garlic fries’ production amidst increasing consumer demand.

Economic Analysis: Capital expenditure (CAPEX) analysis provides stakeholders the knowledge about required investments in advanced technologies, efficient machinery, and necessary infrastructure. Investing in high-capacity mixing equipment, such as a continuous mixer or high-shear mixer, can improve production efficiency by 20-30%. Investing in energy-efficient systems, such as combined heat and power (CHP) systems could reduce energy consumption by up to 30%, as these systems use waste heat from production processes to generate electricity and provide heating.

Historical, Current, and Forecasted Price Trends

Fluctuations in garlic fries prices are influenced by supply chain disruptions and seasonal production variations. Recent delays in the kharif garlic crop due to adverse weather conditions have led to a significant price increase, with retail prices rising from around Rs 40/kg last year to Rs 230-350/kg currently. Additionally, global demand and local production challenges, such as reduced yields from major producing states like Madhya Pradesh, exacerbate price volatility. These factors create a dynamic pricing environment for garlic fries, directly impacting their market stability and availability.

Financial Investment Overview for Garlic Fries Manufacturing Facility

Establishing a garlic fries manufacturing facility requires a comprehensive financial investment that encompasses various elements critical to the project's success. The following sections detail these components:

• Labour: Personnel costs must be factored in, covering wages for skilled and unskilled workers involved in production and administration.
• Packaging: Expenses related to packaging materials and processes are crucial, as they ensure the product is safely transported and presented to customers.
• Utilities: Key utilities needed to produce garlic fries, such as electricity, steam, and process water along with their cost assessments help investors to develop more accurate financial models and budget forecasts, ultimately enhancing profitability. In garlic fries market, energy costs are significant, typically representing around 10-15% of operating expenses. This includes electricity and water necessary for the manufacturing processes.
• Transportation: Costs analysis associated with the logistics of delivering raw materials to the facility and distributing finished products to markets enable investors to select suitable location for manufacturing facilities, improve supply chain strategies, and negotiate better terms with suppliers and distributors.
• Land Acquisition: The purchase or lease of land for the facility is a substantial upfront investment as it aids stakeholders identify areas with lower land acquisition costs and favourable zoning regulations, ultimately reducing initial capital expenditures.
• Construction: Building the manufacturing plant involves significant capital expenditure, including site preparation, construction materials, and labour.
• Machinery: Investment in specialized machinery for mixing, foaming, and curing processes is essential for efficient production.

Profit Margins and Pricing Strategies:

Projected profit margins and effective product pricing strategies improve overall profitability. Manufacturers might target a profit margin of around 20-30%, achieved through strategic pricing based on raw material costs and prevailing market demand. Effective pricing strategies should consider fluctuations in raw material prices and competitive positioning within the market.

Key Questions Addressed:

• What are the detailed unit operations for garlic fries production?
• Who are major technology licensors with their process evaluation?
• How are raw materials or catchem procured and what are their cost implications?
• What utilities are essential for production and what will they cost?
• What are the labour requirements and how does this affect operational costs?
• What packaging solutions are optimal for cost and efficiency?
• What logistical arrangements are necessary for efficient product distribution?
• What are the estimated land and construction costs for a new garlic fries plant?
• How can profitability be maximised in the garlic fries market?
• What pricing strategy should be adopted for garlic fries to remain competitive?

This prefeasibility report aims to equip potential investors and existing manufacturers with crucial insights to make informed decisions in the garlic fries industry.