Hatsun Agro Product, the largest dairy in the private sector in the country, has set up a state-of-the-art plant with a capacity to process nine lakh litres of milk per day for producing mainly milk powder. The plant located near Palacode in Dharmapuri District (Tamil Nadu) will be fully operational by the month end. Including the capacities of the company's existing plants near Kancheepuram and Salem the total capacity for processing milk will increase to 26.50 lakh litres per day.
Addressing visiting presspersons to the Palacode plant, R. G. Chandramogan, Managing Director of the company said the investment on this plant was Rs. 150 crore funded through internal accruals and issue of convertible debentures for Rs. 25 crore. The company was also planning to set up a coal-based power plant of 3 MW capacity involving a capital expenditure of nearly Rs. 60 crore.
Mr. Chandramogan said the company had established an extensive network for direct procurement of milk from farmers.
The company was collecting milk from three lakh farmers daily with a network of 6,000 collection centres and 62 chilling centres in various parts of Tamil Nadu and Kerala.
The company has three major divisions namely ice cream, milk and milk products and ingredients. The company is selling one million litres of milk daily under the brand name “Arokya”.
The company has at present 1,200 distribution centres selling milk, milk products and ingredients. The plan was to increase the outlets to 1,400 by March next year, Mr. Chandramogan said. The focus would be on value added products and ingredients such as ghee, butter, dairy whiteners and milk powder, he said. There was a huge demand for the company's dairy whiteners in North India especially in Rajasthan, he said. Besides catering to domestic market, the dairy ingredients are also exported to 38 countries including Canada.