CHIKKI MAKING UNIT
PROJECT REPORT
This pre-feasibility report is regarding a Chikki making unit. The
objective is to facilitate potential entrepreneurs in project
identification for investment. The document covers various aspects
of the project concept development, start-up, marketing, finance
Ps
and management. We can modify the project capacity and project
cost as per your requirement. We can also prepare project reports
on any subject as per your requirement.
INTRODUCTION TO CHIKKI
Definition
Chikki is a sweet product prepared by mixing various
types of nuts and other ingredients either with
jaggery or sugar.
Preparation
These ingredients are mixed with thick syrup made of
jaggery or sugar. The mixture is cooled and then
smaller pieces are made and packed.
Ingredients
There are many ingredients which are used like
groundnut or cashew nut kernels, sesame seeds,
pieces of dried coconut, dry-fruits and so on.
Popularity
Chikki is popular all over the country amongst all age
groups but school going children and rural areas are
the main targets.
MAJOR RAW MATERIALS
Roasted blanched peanuts Sugar
Used as a binding agent
Key ingredient for chikki production
Jaggery Liquid Glucose
Traditional sweetener for chikki Helps in binding and texture
PRODUCT AND ITS APPLICATION
Ingredients Health Benefits
Chikki made from quality ingredients like Chikki having lot of health benefits as
edible nuts, oilseeds, roasted or puffed being rich source of proteins, mono-
cereals, pulses or legumes; incorporated unsaturated fatty acids, antioxidants,
with good quality jaggery, sugar and minerals and vitamins.
liquid glucose as binding agent.
Nutritional Value Consumption
It is a good source of calories, beneficial Chikki are consumed directly.
in coronary, nervous and skin diseases;
as well help in overall growth and
development of human body.
MANUFACTURING PROCESS
INGREDIENT PREPARATION
All ingredients are weighed accurately.
SYRUP MAKING
The syrup is prepared by melting jaggery, adding some
water and then dissolving required quantity of sugar.
MIXING
Thus prepared syrup is cook properly and then mixed with
split roasted blanched peanuts.
SHAPING
The prepared mass is rolled and sheeted to required
thickness and width to cut the chikki pieces of required
dimensions for 10g and 25g chikki.
PACKAGING
Thus prepared bars are cooled and packed in flow-wrap
packing machine, followed by put chikki bars in PET jars and
corrugated carton for further distribution.
MARKET POTENTIAL
Product Description
Peanut chikki, also called as peanut brittle in western countries is a
ready to eat traditional sweet snack, which is popular throughout the
country and consumed by all the sections of the population.
Demand Trends
Products made from edible oil seeds and sugar is considered as
healthy, nutritious and energetic. Chikki is one of them and demand
for this product is increasing day by day due to ready to eat and easy
availability in good packing with hygienic conditions.
Market Structure
Market Structure
Generally, the market is catered to by the local manufacturers and there
are very few dominant brands. But on the whole, the market is controlled
by the unorganised sector and retailers play a critical role.
MACHINERY REQUIREMENTS
Syrup making vessel 2 100000
Chikki cooking cum 2 400000
mixing pans
Chikki rolling, sheeting 1 345000
and cutting line
Flow wrap packing 1 245000
machine
Gas station & pipelines 1 75000
RO Plant 1 230000
Other machineries & 55000
equipments
PROJECT OVERVIEW
Product Cost of Project
CHIKKI Rs.24.56 Lakhs
Implementation Period Break Even Point
5-6 Months 24%
MEANS OF FINANCE
Term Loan Rs.17.1 Lakhs
Own Capital Rs.2.46 Lakhs
Working Capital Rs.5 Lakhs
DETAILED COST OF PROJECT
Land Own/Rented Building 3.00 Lakhs
/Shed 500 Sq ft
Plant & Machinery 14.50 Lakhs
Furniture & Fixtures 1.50 Lakhs
Working Capital 5.56 Lakhs
Total 24.56 Lakhs
Estimated Annual Sales
Turnover
Year 1
1
(40%Capacity Utilisation)
94.40 Lakhs
Year 2
2
(45%Capacity Utilisation)
111.17 Lakhs
Year 3
3
(50%Capacity Utilisation)
127.29 Lakhs
Year 4
4
(55%Capacity Utilisation)
144.16 Lakhs
Year 5
5
(60%Capacity Utilisation)
161.78 Lakhs
PROFITABILITY ANALYSIS
Years Net Profit (Lakhs) Profit Margin (%)
Year 1 5.34 5.7
Year 2 6.60 7.4
Year 3 9.05 9.5
Year 4 12.53 10.9
Year 5 18.74 11.6
This chart shows the company's net profit growth over 5 years,
with a steady increase from Rs. 5.34 lakhs to Rs. 18.74 lakhs,
while profit margin grew from 5.7% to 11.6%.
LOAN REPAYMENT SCHEDULE
Loan Amount Interest Rate
Rs. 17.10 in lacs 11%
Monthly Installment Loan Tenure
Rs. 31,667 5 Years
The chikki making unit project will be financed through a
term loan. This repayment schedule ensures the project's
financial viability and sustainability.
AREA AND POWER
REQUIREMENTS
Total Area
The approximate total area
required for complete industrial
setup is 1000 to 1200Sqft.
Civil Work Cost
Civil work will cost around 3 Lac
(approx.)
Power Requirement
The power consumption required
to run all the machinery could be
approximated as 30 hp.
PMEGP BENEFITS AND
INCENTIVES
Financial Assistance: PMEGP offers a capital subsidy
ranging from 15% to 35% of the total project cost, depending
on the category and location of the business.
Tax Incentives: Enterprises set up under PMEGP are eligible
for various tax benefits, including exemption from income tax,
excise duty, and GST for a specified period.
Skill Development: PMEGP provides training and skill
development programs to help entrepreneurs acquire the
necessary skills to run their businesses effectively.
Streamlined Approval Process: The PMEGP application
process is simplified, with a single-window clearance
system to expedite the approval of projects.
Mentorship and Guidance: PMEGP offers access to a
network of experienced mentors and industry experts
who can provide valuable advice and support to new
entrepreneurs.
SME SOLUTIONS
WILL HELP YOU
PERSONALIZED GUIDANCE
APPLICATION ASSISTANCE
ONGOING SUPPORT .
COMPLIANCE MONITORING
EXPERT CONSULTATION
CONTACT US 9878201900
www.smesolutions.org.in
