Programming Other Atmel chips using Arduino
Is it possible to burn Arduino code on any other third party Atmel products using an another Arduino ? And if its possible then how ? 


Do you mean if the "Arduino as ISP" sketch and an Arduino would work to flash another Atmel AVR MCU? If so the answer is yes but I guess that you also want to generate code for the new MCU. In that case there is some work to be done before that is possible. 

Start by reading about how to install additional cores and the guideline for a custom core. Then select an custom core to study. Here you will find the files you need to provide to support a new AVR based MCU. 

Cheers!