Aavin to invest over Rs 300 crore to boost capacity

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Proposals include increasing capacities of three dairies at Madhvaram, Salem, and Thanjavur by 7.5 lakh litres a day

CHENNAI: With increasing milk production in the State, Aavin has decided to augment its milk-processing capacity from 41 to 50 Lakh Litres Per Day (LLPD). Proposals include increasing the capacities of three dairies – at Madhvaram, Salem, and Thanjavur – by 7.5 LLPD and raising milk-powder and ice-cream production capacities of plants in Salem and Tiruchy.

The projects will be taken up at a cost of Rs 348 crore under Dairy Processing Infrastructure and Development Fund, sponsored by the National Dairy Development Board (NDDB). “The Madhvaram plant will be upgraded to handle 10 LLPD (from current 5 LLPD)at a cost of Rs 142 crore,” K S Kandasamy, Managing Director of Aavin, told Express.

Presently, 13.5 lakh litre of milk sold in Chennai and neighbhouring areas are processed at Sholinganallur, Ambattur, Madhavaram, and Kakkalur dairies.  According to recent data, Aavin procures about 41 LLPD, of which 26 lakh litres are sold in packets, 10.75 lakh litres are converted into value-added products, and about four lakh litres are sold loose.

Aavin has also proposed to increase the capacity of the dairy in Salem from 5 to 7 LLPD at a cost of Rs 140 crore. The works are expected to be completed by August 2023. “This is due to increased milk production in Salem and Namakkal. Milk powder is also in high demand in the region. So, milk-powder production will be increased from 10 to 30 metric tonnes,” added Kandasamy.

To meet demand for Aavin products in Tiruchy and its neighbhours, the Tiruchy plant will be expanded at a cost of Rs 43 crore to produce 6,000 litre of ice cream a day. The works are expected to be completed by August 2023.  Sources said the measures will substantially increase the Aavin’ market share.

Aavin per day milk procurement: 41 lakh litres
Milk sold in packets: 26 lakh litres
Unpacked milk: 4 lakh litres
Milk products: 75,000 litres
Ghee and milk powder: 10 lakh litres
Per month sale of milk and milk products: Rs 400 crore
Consumers: one crore a day

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