Rabo India Finance Ltd, which has been hired by Punjab State Cooperative Milk Producers’ Federation Limited — popularly know as Milkfed — to prepare a strategic vision plan, is likely to submit its revised report within two weeks.
Speaking to Business Standard, Milkfed managing director VK Singh said, “Rabo India Finance has suggested ways to improve the efficiency, profitability and market operation by comparing us with the Gujarat Co-operative Milk Marketing Federation. We have asked for certain clarifications and expect a revised report within two weeks.”
The cooperative has 10 milk plants across Punjab with an installed capacity of 1.4 million kg per day. At present, the federation carries a debt of Rs 200 crore. There are about 360,000 dairy farmers who supply milk to the federation. It sells its dairy products like fresh milk, curd, paneer, lassi, and desi ghee under the Verka brand.
In the last financial year 2007-08, Milkfed registered a turnover of Rs 931 crore and is targeting Rs 1,160-1,180 crore this year.
“We are planning to upgrade technology and ramp up the capacity of our plants. Towards this, the capacity of the Mohali milk plant will be tripled from 100,000 litres per day by December 2009 with an investment of Rs 15 crore while the capacity of tetra packing line situated in Chandigarh will be tripled to 6 million packets with an investment of Rs 10 crore,” Singh said.
The federation has already installed a butter wrapping and carton packing machine, imported from Germany worth Rs 5 crore, at its Ludhiana plant.