In a bid tap lucrative milk markets, Mehsana-based Mehsana District Cooperative Milk Producers’ Union Ltd., popularly known as Dudhsagar dairy is in talks with Delhi Municipal Corporation to set up 10,000 vending booths in the national capital as well as the NCR.
The dairy has submitted its proposal for allotting land on lease to set up the booths. If DMC approves the project, the dairy will invest around Rs 100 crore.
The biggest dairy in Asia, Dudhsagar is expanding its milk processing capacity at its Manesar-based facility to 10 lakh litres per day from 5 lakh litres per day. Besides it is also scaling up ghee and ice-cream manufacturing capacity to 25,000 litres per day each from 10,000 liters per day each respectively.
The dairy will invest around Rs 50 crores for the expansion and the process is expected to be finished by March end.
Bullish on the NCR, the dairy is eying another 5 lakh litres of milk per day share within the next one year. At present, Dudhsagar supplies 9 lakh litres of milk per day to the market, up from 6 lakh litres about a year ago.
The total size of Delhi market is being estimated at around 50 lakh litre of milk per day, sources in the dairy said.
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For last few months, the dairy is in talks with union government to purchase Delhi Milk Scheme (DMS).
“The number of residential colonies is on rise in NCR region and the region carrying a great potential for milk-based products. We have submitted a proposal to the Delhi Municipal Corporation (DMC) to give us land on lease basis, so can we cater the people in the region with our products,” said Vipul Chaudhary, chairman, Dudhsagar dairy.
If the DMC denies land, the dairy may open booths in private residential colonies in NCR.
“The Delhi market is very important for us. As a cooperative organization, we are expecting support from state as well as central government,” Chaudhary added.
Dudhsagar Dairy, a prominent member of Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), has already lined up an investment of Rs 225 crore by 2020 for its expansion.
The Dudhsagar Dairy posted a turnover of Rs 1,485 crores in the fiscal 2007-08 and it is likely to cross Rs 1,700-crore mark during this fiscal, say dairy sources.