The first unit of Krishna Milk Union (KMU), known for its brand Vijaya Dairy, suffered a loss of about ₹60 crore due to the floods and torrential rains that lashed the city. This is a preliminary assessment of the loss, the management said, adding that machinery and stocks in the factory are still under a sheet of floodwater.
KMU chairman Chalasani Anjaneyulu said that the milk factory in the city produces more than 2.50 lakh litres of milk and 1.50 lakh litres of curd per day. “With knee-deep floodwater inside the factory, it was not possible to start production. Finished products such as paneer, butter, sweets etc. are lying in the floodwaters and efforts are being made to retrieve the stocks,” Mr. Anjaneyulu said.
As much as 1.50 lakh litres of packaged milk worth ₹1.05 crore, and 1 lakh kg of curd worth ₹75 lakh was in the factory. Also, processed milk worth ₹252 crore and 18,000 kg of ghee worth ₹1.08 crore, 600 kg of paneer, and other finished products were lying the factory premises. The estimated loss of these products is ₹61.05 crore. In addition, the estimated loss of equipment would be ₹4 crore, taking the total losses to ₹60 crore. The exact loss could be assessed only after the floodwaters recede, he said.
Despite these circumstances, KMU did not stop procuring milk from the farmers nor was production stopped. The second unit, which was launched a few months ago at Veeravalli village in Bapulapadu mandal near Hanuman Junction, is helping KMU meet the demand. Supply of milk and other products was restored in the city and other parts within no time. The Veeravalli unit produces about 3 lakh litres of milk and 1 lakh litres of curd daily. The production capacity is 4 lakh litres, and there is a scope for expansion up to 10 lakh litres a day. The investments made at the Veeravalli unit are coming in handy during this crisis, he added.
