The Hindu Business Line : AP Dairy to diversify product portfolio

Hyderabad, Nov. 17 In order to diversify its product portfolio, Andhra Pradesh Dairy Development Co-operative Federation Ltd (APDDCF) is looking at launching ice creams and bakery products soon.

“The ice creams will be launched in different combinations such as family packs, buckets and all the other smaller varieties that are available in the market by December followed by bakery items,” Mr Adhar Sinha, Managing Director, APDDCF, told Business Line here.

Franchise for ice-creams

While APDDCF is looking at a franchise model for the ice-creams, it prefers a tie-up for the revival of its bakery products such as biscuits, bread, among others.

Tie-up for bakery items

It had last month launched Vijaya Rosogulla, Vijaya Gulab Jamun and Vijaya Milky Way flavoured milk as part of its product diversification.

Mr Sinha also said that during the current financial year, they will be setting up 50 bulk milk cooling units and another 40 next year to the existing 133 units in different mandals across the State.

Investments

“We will be investing Rs 50 crore received under the Rastriya Krishi Vikas Yojana (RKVY) for setting up the bulk milk cooling units,” he said.

Mr Sinha said that they expect to start storage operation by January at the recently launched two lakh litres a day (LLPD) Swarna Jayanthi Pala Padarthala Kamagar (milk products factory). It is investing Rs 10 crore in this project.

“It will take another couple of months for other mechanical components such as homogenisers, pasteurisers and chillers to be added,” he said.

Packing station

APDDCF is also looking at starting a 20,000 litres packing station near Eluru in a week to cater to the surrounding areas.

During the current financial year, it expects milk procurement to be between 1,300 lakh and 1,400 lakh litres as against 890 lakh litres procured last year. “During the first half of the current financial year, the procurement was at 485 lakh litres. The late monsoon and early winter have not helped the growth as much as last year but the trend is good and we expect to meet the procurement target,” he said. According to Mr Sinha, the growth is also measured in terms of the payment made towards the farmers and this year, it is expected to cross Rs 200 crore as against Rs 113 crore last financial year. APDDCF for the current financial year expects its revenues to touch Rs 400 crore as against Rs 296 crore last year out of which 75 per cent is expect to come from sale of milk and the rest from other product lines. “We are also in the process of wiping out the accumulated losses and if the current trend continues then we expect to clear the losses in the next three year,” Mr Sinha said.

More Stories on : Dairy & Dairy Products | Andhra Pradesh | Diversification

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