Inclusive trade, Muthoot style

The business would be managed under a separate company with 100 per cent shareholding of MPG with name Muthoot Dairy and Agri Ventures Pvt. Ltd.

Establishing a milk processing unit in Palakkad, the new company would be collecting, processing, packaging and distributing milk and its by-products.

Muthoot Pappachan Group (MPG), a leading Kerala-based finance institution, plans to start dairy business, procuring milk only from their borrowers.

Establishing a milk processing unit in Palakkad, a district in the northern part of Kerala, the new company would be collecting, processing, packaging and distributing milk and its by-products.

“The idea originates from the need of forward integration for our 50,000-plus diary loan clients. With this venture, the company is trying to address some core issues which are critical for our customer and the entire dairy ecosystems,” said Thomas Muthoot, Executive Director, MPG, while talking to

The Hindu .

The business would be managed under a separate company called Muthoot Dairy and Agri Ventures Pvt. Ltd. It will be fully owned by MPG.

“We will be procuring milk only from our borrowers. We are doing complete end-to-end integration of our services with the aim of giving better value for producer and providing better quality product to end-users,” said Mr. Muthoot

According to him, this venture could eliminate middle man and provide better price to dairy farming clients for their milk; provide un-adulterated pure milk to the end-consumers; address the shortage of milk with growing demand in Kerala; and provide dairy extension services to farmers and help them get better yield from their animals.

"There is large demand-supply gap in this sector. With increasing demand for higher nutrition among growing middle class and rural areas, the demand and prices of milk are poised to grow,’’ he added.