Sid’s Farm, a premium dairy farm set up by former techie Kishore Indukuri, is planning to expand the capacity in the next two years to 50,000 litres a day from the current capacity of 20,000 litres a day.

The dairy firm with about 100 cows has tied up with 1,500 farmers in Mahboobnagar, Rangareddy and Wanaparthy districts in Telangana is targeting the premium segment in the dairy market.

“Our milk is pricier. We sell it about 25 per cent more than the regular milk that is sold in the market. We see a good potential for this product despite the higher price,” Kishore Indukuri told BusinessLine .

Testing 26 parameters

Set up in 2013, the dairy conducts rigorous tests on the milk that they sell.

“We test every can of 40 litres for 26 different parameters, which include antibiotics, adultrants and preservatives. We do not take the cream out of the milk,” he said.

After graduating from IIT Kharagpur, Kishore did his masters and PhD at the University of Massachusetts. After working for the Intel Corporation for six years in roles that tested the quality of chips in the US, he returned to India to do farming in late 2012.

“After a few months into growing baby corn, I had decided to set up a farm near Hyderabad to produce quality milk,” he said. Sid’s farm, he asserted, has no plans to sell milk in non-premium categories.

“We believe that each of the top cities has a demand for at least one lakh litres of premium milk. A section of the consumers wouldn’t mind paying a premium to buy quality milk for their families,” he argued.

Expanding capacity

The firm, which has achieved a break-even three years ago, is in the process of raising ₹25 crore to support its expansion plans.

“We will use the proceeds to expand the processing capacity and the reach of our market,” he said.

“We have invested ₹5 crore so far through our journey. We are planning to tap the potential in Hyderabad before looking at other markets,” he said.