July 27, 2012

Dudhsagar Dairy to set up new facility in India

Press release

Indian dairy co-operative Dudhsagar Dairy plans to invest INR3.5 billion (US$63 million) to set up a facility in Haryana state by the end of 2012, to boost milk supply to Delhi.

The new plant at the Dharuhera industrial estate will have a total processing capacity of 3 million litres per day (mlpd), of which 2.5 mlpd capacity will be allocated for liquid milk, 0.25 mlpd for buttermilk and 150 metric tonnes for yogurt and yogurt-based drinks.

The dairy co-operative plans to set up the plant in four phases, with the first phase scheduled to be completed by November 2012. Following the first phase, the facility will have a processing capacity of 1.5 mlpd, of which, 0.91 mlpd will be for processing liquid milk, 0.1mlpd for butter milk, and 40 metric tonnes for yogurt and yogurt-based drinks.

During the second phase, the capacity for processing liquid milk and butter milk will be further expanded.

In the third phase of expansion, 0.5 mlpd capacity will be added to the total capacity, taking the total capacity to 2 mlpd, of which about 1.8 mlpd will be allocated for liquid milk, 0.2 mlpd for buttermilk, and 80 metric tonnes for yogurt and yogurt-based drinks.

The fourth phase of expansion, which will be completed by September 2016, will see an addition of 1 mlpd, taking the total capacity to 3 mlpd.

The co-operative currently supplies 1.15 million kg of milk to Delhi through its Manesar plant and other leased facility at Ghogha in the National Capital Region. Dudhsagar Dairy's INR 1 billion (US$18 million) plant in Manesar, which processes 0.97 mlpd, has already reached its full capacity.

With the new project, the co-operative is seeking to become a leading milk supplier to Delhi, reported The Times of India. Dudhsagar Dairy, also known as Mehsana District Cooperative Milk Producers' Union, is a member of the Gujarat Cooperative Milk Marketing Federation, which markets dairy products across India under the Amul brand.