KMF to set up milk powder plant

The new facility will be put up by NDDB in Hassan district

The Karnataka Milk Federation (KMF) is setting up a milk powder manufacturing plant in Hassan district at an estimated cost of Rs 70 crore on a turnkey basis with the help of National Dairy Development Board (NDDB).

NDDB will bear 80 per cent of the cost and KMF, the rest. "We are setting up the ultra-modern plant with assistance from the NDDB with which we have signed a memorandum of understanding for a period of five years. NDDB has committed an assistance of Rs 250 crore over five years ending 2010," KMF managing director G S Jayaprakash Reddy said.

The new plant will have a capacity to dry three lakh litres of milk every day. It will also be used to manufacture other products like ghee, butter and pack milk using ultra high temperature (UHT) technology which will be marketed in tetra packs.

NDDB proposes to import the machinery for a plant from Germany, Reddy told Business Standard. The new plant will convert the excess milk procured from farmers in Mysore, Mandya, Hassan, Tumkur and Shimoga districts into powder. Though milk unions were producing excess milk, KMF had not declared a "milk holiday" so far.

KMF will acquire 13 acres at Yelahanka for expanding the existing Mother Dairy. The Bangalore Dairy's capacity will be increased from the present six lakh litres of milk per day to 10 lakh litres at an investment of Rs 40-50 crore.

"We also propose to strengthen and modernise our dairies at Mandya, Kolar, Tumkur and Bangalore. In Kolar we are setting up a new two lakh litres per day capacity dairy."

To use the surplus milk in the state, the KMF is also setting up a new milk packaging unit at Kolar dairy at a cost of Rs 7.55 crore. Here, it plans to pack milk in one litre brik packs using UHT technology. The milk is sold in a pack of 500 ml under Nandini's sub brands ? 'Goodlife' and 'Slim'. The one litre pack will be priced at Rs 24 as against Rs 26-30 by the private companies.

The UHT treated fresh and pure Nandini milk is now packed into six-layered tamper proof tetra brik package giving it greater shelf life. The normal shelf life of this milk is six months, Reddy said.

"Keeping in mind the local market and to create international presence we have envisaged a one litre brik capacity which will help us meet the market requirements outside the state and will also target institutional customers," he added.