Karimnagar Dairy targets Rs 400-crore turnover
3-lakh litre new plant to commence operations in 2020; To roll out Mango Lassi after Sankranthi
Hyderabad: Buoyed with growing demand in the domestic dairy sector, Karimnagar Milk Producer Company Limited, known as Karimnagar Dairy, is in an expansion mode.
Quality drives the demand and we adhere to global quality standards, says Chelimada Rajeshwar Rao, Chairman, Karimnagar Dairy, while projecting Rs 400-crore turnover for next fiscal.
"We are setting up a dairy processing plant with three lakh litres per day at an investment of Rs 60 crore. And the new facility is expected to be operational by December 2020.
With this, our total capacity will reach five lakh litres a day. With this in place, we're targeting Rs 400-crore turnover for the 2020-21 financial year from the Rs 312 crore now," Rao told The Hans India.
The state-of-the-art dairy unit is coming up at the Nallagonda village in Thimmapur Mandal in Karimnagar district.
Karimnagar Dairy is the leading dairy company in Telangana and recently bagged an Emerging Retailer award under Retail Ratna Awards-2019, instituted by The Hans India, an English daily from Hyderabad Media House, owned by Kapil Group.
Karimnagar Dairy has been introducing new dairy products from time to time and the latest product Kova Jamun well received in the market, says Rao, while adding that he would introduce a new product 'Mango Lassi' in the domestic market after Sankranthi this year.
Shrugging off the impact of corporate brands, Rao said that "dood peda, malai laddu, milk cake, cova jamu, etc., all our products are in good demand.
When quality is good, there wouldn't be any problem of demand. We have been maintaining global quality standards for all our products and growing consistently."
Practicing value-based production system for dairy farmers, Karimnagar Dairy has been witnessing a double-digit growth rate ever since its inception in 1997 under AP Cooperative Act.
It was later in 1997 registered under AP Cooperatives Societies Act-1964 and was handed over to milk producers committee in 1988 and subsequently in 2003, it was converted into mutually aided cooperative society and later became as producer company under Companies Act.
Now, it's procuring almost two lakh litres of milk per day and processing it.
The milk procurement rose over 19 per cent in 2019 as a total of 550.08 lakh litres of milk was procured during the year as against 461.79 lakh litres in the previous year.
The average procurement per day is hovering at 1.7 lakh litres a day.
Leveraging its vast network, the diversification plan includes distribution of IFFCO's fertilisers in all the villages through its milk societies.
Karimnagar Dairy is focusing on developing the fodder plots.
As per the plan, fodder chaff cutters will be provided to farmers with 50 per cent subsidy as each milk producer will get funding support in the range of Rs 2,000-3,000.
The dairy company is also helping dairy farmers societies to have their own buildings and sheds by extending a financial support of Rs 50,000 to Rs one lakh.