Visakha Dairy becomes private company now

Becomes country's largest milk producing pvt company

Sri Vijaya Visakha Co-operative Dairy (Visakha Dairy) has become a private company and will be called as Sri Vijaya Visakha Milk Producers' Company (Private) Limited henceforth.

With this decision, which was taken by the dairy's governing body with the consent of the majority of the milk societies' presidents at the dairy's 25th annual general meeting held on September 30, the dairy also becomes the country's largest milk producing private company.

The move, however, is likely to stir a hornet's nest as the Congress-led state government is understood to be against the co-operative converting into a private limited company.

The state government has already filed a case to stop the process of shifting Visakha Dairy from the Co-operative Act to the Central Producers' Company Act. The reason being that the current governing body of Visakha Dairy is dominated by Telugu Desam Party leaders.

"Once the dairy is converted into a producers' private company, the state government will no more have any control over the dairy's activities and it is because of this that the state government is opposing the move," sources said.

The dairy, which was set up 25 years back under the Co-operative Act, has been working under the co-operative banner until now. There are around 800 registered co-operative milk producers' societies and 700 unregistered societies apart from 1.8 lakh milk suppliers working under Visakha Dairy.

Speaking to Business Standard, NV Venkata Rao, managing director of Visakha Dairy, said: "We have changed Visakha Co-operative Dairy into a private company as per the central government's Producers' Company Act, 2002. With this, our dairy will be called as 'Sri Vijaya Visakha Milk Producers' Company (Private) Limited', and will be the largest milk producers' company in the country. The existing 1.8-lakh milk suppliers in the four districts "� Visakhapatnam, Srikakulam, Vizianagaram and East Godavari "� will be the members/ shareholders of this new company. We are also planning to distribute the profits/ dividends among the milk suppliers every year."

"This decision has been taken by the dairy's governing body with the consent of the majority of the milk societies' presidents at the dairy's 25th annual general body meeting on September 30," he added.

Adari Tulasi Rao, the present chairman of the dairy, will continue to be the chairman of the new company. On the occasion of the formation of the new company, the chairman has announced around Rs 7 crore as bonus to the milk suppliers of Visakha Dairy.

The north coastal Andhra-based Visakha Dairy posted a turnover of Rs 210 crore last fiscal. The dairy is expecting to achieve a turnover of Rs 230 crore this fiscal.

In 2003-04, Visakha Dairy procured nearly 11.65 crore litres of milk from the 1.8 lakh milk suppliers across the four districts, as compared to 11.12 crore litres of milk in the year before. Visakha dairy is not only exporting milk to the Kolkata market, but is also supplying milk to 'Amul' dairy. The dairy is also planning to export its milk products to other countries shortly.