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Start a Chikki Making Business

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Start a Chikki Making Business

INTRODUCTION
Chikki is a sweet product prepared by mixing various types of nuts and other ingredients
either with jaggery or sugar. These ingredients are mixed with thick syrup made of jaggery
or sugar. The mixture is cooled and then smaller pieces are made and packed. There are
many ingredients which are used like groundnut or cashewnut kernels, sesame seeds, pieces
of dried coconut, dry-fruits and so on. Chikki is popular all over the country amongst all age
groups but school going children and rural areas are the main targets. This product can be
manufactured anywhere on the country, but this note considers the North-Eastern States as
a preferred location, in view of growing market


PRODUCTS
Chikkies can be made from many dry ingredients as explained above. It is a dry and sweet
preparation. It can be made by using costly ingredients like dry fruits but market for such
costly chikkies is limited and demand is only during winter season. But chikkies made from
groundnut kernels, dry coconut and sesame seeds have vast market round the year. This note
deals with such low cost high volume products

TYPES OF CHIKKI



                  
Almond Cashew Nut  Chikki                                 Almond Chikki

   
                         Cashew Nut Chikki                                            Cashew Nut Crushed Chikki


                        

Cashew Nut –Dry Fruit –                                                   Chocolate Crushed
Sesame - Coconut Mix Chikki

      
               Coconut Chikki                                                         Rose Chikki




Availability of technology and compliances
DFRL, Mysore has successfully developed the technology. Compliance with the PFA Act is
compulsory.


MARKET POTENTIAL
Chikkies are not much popular in urban areas and are eaten in a very small quantity that
too during winter season. But they are very popular in semi-urban and rural areas especially
amongst school going children. Low priced chikkies packed individually in plastic sheets have
large market. Apart from sale through retailers located near the schools, bus stands, weekly
01markets, cinema halls, taxi stands, rural fairs etc. are the places where they are sold briskly.
Thus, the market is scattered.


Marketing Strategy:
Generally, the market is catered to by the local manufacturers and there are very few
dominant brands. Lonawala on Mumbai-Pune highway is famous for chikkies with more than
100 manufacturers. But on the whole, the market is controlled by the unorganised sector and
retailers play a critical role.


MANUFACTURING PROCESS
The process is very simple. Groundnut kernels are roasted to remove the outer red skin and
they are split in the splitting machine. In case of sesame seeds or dry coconut they are
roasted and small pieces of coconut are made manually. Simultaneously, jaggery is boiled in
water till thick syrup is formed and then filtered to remove unwanted particles. This hot
syrup is mixed with groundnut splits or roasted sesame seeds or pieces of roasted coconut
and then this mixture is poured in trays for drying. After about couple of hours, small square
sized pieces are cut and individual piece is packed in plastic wrappers. The Process Flow -
  • Roasting of groundnuts, sesame seeds and pieces of coconuts
  • Preparation of syrup of jaggery
  • Mixing of ingredients in syrup of jaggery
  • Cooling and cutting
  • Packing

Land and Building
A plot of land of about 700 sq.mtrs. with built up area of 400 sq.mtrs. is adequate. The 
production area would have two major sections. One would have furnaces (bhattis) and the 
second one would accommodate trays for drying. A packing room of about 50 sq.mtrs. and 
raw materials storage of 50 sq.mtrs. is sufficient. Finished goods godown can be 
accommodated in 40-45 sq.mtrs. Price of land would vary according to location but it is taken 
at Rs. 300/- per sq.mtr. whereas average construction cost is considered @ Rs.2, 500/- per 
sq.mtr.

Machinery
Keeping in mind the size of the market, it is suggested to have rated capacity of 15 tonnes 
per month or 180 tonnes per year with two shift working and 300 working days every year. 
Increasing of capacity would not require huge capital investment or time and hence moderate 
capacity is suggested. Following equipments shall be required.
Item                                                          Qty.                                                Price (Rs)
Oil-fired Furnaces                                      4                                                      60,000
Stainless Steel Utensils of Different Sizes    10                                                     40,000
Large Capacity Pans                                   6                                                      20,000
Platform-type Weighing Scale                     1                                                       15,000
Electronic Weighing Scale                            1                                                         7,000
Drying Trays                                             25                                                         50,000
Other Miscellaneous Equipments                --                                                         10,000
Total                                                                                                                   2,02,000


Miscellaneous Assets
A provision of Rs.50,000/- would be sufficient to take care of other assets like furniture and 
fixtures, exhaust fans, electricals, storage facilities, etc.

Utilities
The all important requirement will be furnace oil. It is also possible to use either coal or 
wood. Power requirement will be 7.5 HP whereas water requirement per day will be 800-1000 
ltrs. Total expenditure on utilities at 100% capacity level will be Rs.2.00 lacs.

Raw Material
The major raw material will be groundnut kernels, sesame seeds, dry coconut and jaggery. 
Groundnut chikki is very popular and hence 60% of the total production will be of groundnut 
chikkies. Very small quantity of essences shall be required. As regards packing materials, 
small sized wrappers, card-board boxes or plastic jars and second-hand corrugated cartons 
will be required


Some of the machinery suppliers are as under:
1. Sujata Enterprises, Laxmi Road Pune 400 030
2. Apurva Engg Works, Borivali, Mumbai 400 098
3. Guru Nanak Engg. & Foundry Works, 166,Focal Point, Mehta Road, Amritsar- 143039 
Tel No. 2583542-2587943, Fax: 2587944
4. Sadanand Approtech Pvt .  Ltd,  B-34,  Mini  Nagar ,  Dahi sar (E) ,  Mumbai -  400068 
Tel No. 28114536-28104143
5. Sahyog Steel Fabrication, 28, Bhojrajpara, Gondal- 360311. Tel No. 224075






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