Agri Business

ABT Dairy gearing up to strengthen product line

LN Revathy Coimbatore | Updated on January 11, 2018

The dairy division of ABT Industries, belonging to Sakthi Group of companies, is looking to strengthen its position across the product line.

The two-decade-old dairy division, located at Amabarapalayam, Pollachi, is gearing to increase curd production five fold from the current level of 20 tonnes a day, enter ice-cream production and augment its cold storage facility, CP Charles, senior president, ABT Dairy, told BusinessLine.

Milk procurement

He said the daily procurement of milk through 730 collection centres is close to 2 lakh litres. “As many as 12,500 farmers are registered with us at present, each with a herd size of three to five cows.

“Our endeavour is to improve the livelihood of these farmers; we want to help them increase their holding to eight to ten cows and increase our milk procurement volumes to 10 lakh litres a day by 2025. Our collection centres cover 16 to 17 taluks in this region at present. We are intent on expanding our area of operation,” he added.

To a query on drought and availability of water and fodder for the milch animals, he said, “Water has been issue all over. We want to ensure availability of feed for the animals. We plan to develop seed centres to ensure that there is no shortage of fodder for the animals. Our people underwent training in Israel. We hope this will benefit the farmers.”

“Acute drought forced some farmers to sell their cattle, but we also realised that they returned to our fold after repurchase,” he said in reply to a question.

Curd production

ABT Dairy currently has a 20 tonne a day curd production facility. “We will decommission this plant once the new plant is commissioned. This 100 tonne/day curd production plant is scheduled to commence operation in September-October.

“We are also contemplating to roll out Sakthi brand ice-cream. But this is planned only during next summer; we are envisaging 1,200 litres of ice-cream per hour; the plant will operate for 10 hours,” Charles said.

Paneer production stands at four tonnes a day. The company according to Charles is planning a bigger cold room facility for storing paneer, butter and cheese.

Claiming to be the first to introduce bulk coolers and milk analysers in Tamil Nadu, the company is planning to own tankers for transporting Sakthi milk, which at present is moved in contracted tankers.

The division’s milk procurement grew at CAGR of 7.5 to 8 per cent, while on the turnover front, it was lower at 5 to 6 per cent, he said.

Central grant

To strengthen its presence, ABT Dairy has sought the services of project management consultants, NAPL. The total cost of the project is estimated at ₹35 crore.

The company has received a grant of ₹10 crore from the Union Ministry of Food Processing Industries.

Published on July 10, 2017

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