On a warm afternoon in Bhubaneswar, India, sisters Shanta and Rita prepare a new batch of organic chocolates at their state-of-the-art facility, ‘Chocolaca.’
Shanta, a psychologist specialising in autism spectrum disorder, and Rita, an educationist and social worker, have always worked together. In 2016, they established a school for children with disabilities. To support the school's mission and provide vocational training to students above 18 years old, they ventured into chocolate making, founding their brand Chocolaca later that same year.

Chocolaca is the Indian state of Odisha's first Beans-to-Bar chocolate manufacturing unit, meaning they manage everything from processing cocoa beans to making the chocolate bars, with an emphasis on organic ingredients and shunning chemical additives, artificial colors, flavours, and preservatives.

Their commitment to quality and social impact, however, faced significant challenges early in their journey. Limited machinery, production capacity, and a lack of marketing platforms to help them expand beyond the local market all hampered their growth. The sisters struggled with securing distributors and purchasing cocoa beans, and without sufficient outlets to showcase their products, their progress was slow.

The turning point in their story came with support from the PMFME (Prime Minister’s Formalization of Micro Food Processing Enterprises) scheme, led by the Director of Industries, MSME Department, Government of Odisha, in collaboration with Palladium as the State Project Management Unit. The scheme provides crucial support to micro food processing enterprises through training, capacity-building, seed capital, and credit linkages.

Under the scheme, Chocolaca received a loan of US$18,000. This financial support, combined with Palladium’s support and strategies in applying for the loan, enabled the sisters to acquire advanced machinery, which significantly enhanced their production capabilities and allowed them to scale their operations.

With new equipment, Chocolaca's 12 workers upgraded their food handling, safety, hygiene, and maintenance skills, leading to a dramatic increase in production. With timely credit support and capacity building training, Chocolaca's turnover surged from US$6,000 in FY 21-22 to US$48,000 by March 2024.

Today, Chocolaca sets the standard for excellence with all mandatory licenses in place and products available nationwide through major online platforms. Shanta and Rita also create deliberate employment opportunities, offering food and housing allowances to employees. Recognised with numerous accolades, including the MSME Excellence Award and the Woman Leadership Award, Chocolaca is now preparing to introduce jackfruit-based chocolate in collaboration with the regional Indian Institute of Technology, with plans to expand into international markets starting with Dubai.

"Our vision is to create healthier food alternatives while empowering our community and supporting the education of children with disabilities," says Shanta. "We aim to take Odisha's traditional flavors to the world, demonstrating that with perseverance, dreams can indeed become reality," adds Rita.

And 8 years later, the school is still in session thanks to the funds made through Chocolaca’s sales.

"Aligned with the Make in India mission, the PMFME scheme is dedicated to empowering grassroots food processors and amplifying local products," says Amit Patjoshi, CEO of Palladium India. The Make in India mission is a major national initiative launched by the Government of India in September 2014. Its primary goal is to transform India into a global manufacturing hub by encouraging both multinational and domestic companies to manufacture their products within the country.

This initiative is designed to create jobs, boost economic growth, and increase India's share of global manufacturing, and the PMFME scheme plays a big role.

"Through comprehensive project planning, support and capacity-building activities, Palladium in India has facilitated over US$13 million in credit-linked support to more than 1,500 enterprises and provided entrepreneurship training to over 8,900 beneficiaries,” Patjoshi adds.

The PMFME scheme continues to drive growth and innovation, showcasing the potential of India’s micro food processing sector and its pivotal role in the global organic food revolution.

For more information, contact info@thepalladiumgroup.com.