The Hindu Business Line : Himalya Intl begins first phase of cheese production

HIMALYA International Ltd (HIL) has begun its first phase of cheese production at its new plant in Himachal Pradesh. Commercial production is expected to commence next month.

"A technical team from the foreign collaborator visited our unit last month and oversaw the entire first phase of production," Mr Man Mohan Malik, Chairman, told Business Line.

"The plant would produce about 6-7 million pounds in the first year of operation. At full capacity, the company can process 15 million pounds of specialty cheese a year valued at $25 million," he added.

The company has entered into an arrangement with Artiginale Italiano Inc to market the entire produce, which should be made available in retail outlets in North America.

The company has already embarked on a programme of backward linkage for contract purchase of high protein buffalo milk directly from farmers.

"We have approached Nabard to finance dairy farms with buyback arrangements under the new incentives scheme of the Union Government for dairy development. Under the scheme, the company has opened about 40 centres (mainly in Punjab and Himachal Pradesh), which would collect 1,00,000 litres milk a day," Mr Malik said.

"The company has set up village-level collection centres under the Nabard scheme and has roped in 2,000 farmers to procure the high protein milk for the production of the specialty Mozzarella cheese."

This specialty cheese has hitherto been the exclusive domain of Italy.

The entire cheese unit along with its components has been imported from the US and set up within six months. The total cost of project is estimated at $2.5 million.

Of this, the company would offer $1.6 million worth equity shares to two foreign collaborators (First Family Holding Inc and Rs Wholesale Inc) against payment of imported components, Mr Malik said.

The company has also commenced processing a 1.6-million-pounds baby potatoes order for a company headquartered in Canada.

It had received a $2.5-million order for its specialty baby potatoes from a major North American retail chain in mid-November 2005.

The specially grown tiny potatoes with soft skin are being grown under the company's contract farming programme in Himachal Pradesh.

These potatoes are harvested under special climatic conditions to retain the soft skin and golden yellow colour.

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