Hatsun Agro Product Ltd is set to expand milk processing capacity and more than double the production of branded curd , according to reliable sources.

The company, the largest private sector dairy, handles about 21-24 lakh litres of milk daily which just about matches its installed processing capacity. This is about one-third of the 70 lakh litres procured in Tamil Nadu by the organised sector, including the cooperatives, which procure and sell processed, branded milk and milk-based products.

R. G. Chandramogan, Chairman and Managing Director, Hatsun Agro, said the company will add about 70,000 litres of curd production and packaging capacity which will take its total daily output to 1.20 lakh litres. The facility at Palacode, coming up with an investment of about Rs 33 crore, will commence production in February.

However, he declined to comment specifically about the milk processing capacity expansion.

Reliable sources said the company is in the preliminary stages of expanding processing capacity by about five lakh litres a day. The details of the investment are not available. The added capacities will come up in South Tamil Nadu.

The company sells liquid milk in South India under the brand name ‘Arokya’ and a range of milk-based products under the brand name Hatsun. The other major product line is ice creams under the brand ‘Arun’ and Ibaco, a chain of exclusive ice cream parlours.

About 13 lakh litres of milk procured from dairy farms is processed and sold as branded, liquid milk, ice creams and curd. The balance goes as milk ingredients including butter, ghee, skimmed milk powder and dairy whitener under the brand name Hatsun available nationally.

(This article was published on December 8, 2012)
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