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Tirumala Milk to set up organic dairy farm-to setup mini biomass power plant

According to reports,Guntur-based Tirumala Milk Products Private Limited is set to establish a 20,000-milching animal farm to produce premium organic milk and milk products with an investment of up to Rs 6,000 crore in the next five years. Tirumala is now a Rs 1,100-crore dairy company from a Rs 25-lakh chilling centre operator 12 years ago.

Private equity player The Carlyle Group, which had invested over Rs 100 crore in the company a couple of years ago, is advising the management on its proposed expansion plans, including fund raising options and a likely public issue at a later date.

The dairy company procures and markets 1.3 million litre processed milk across Andhra Pradesh, Tamil Nadu and Karnataka in equal proportion every day while the new milk farm project alone will have a capacity to produce 1 million litre a day when fully operational.

At present, the company has six processing and 150 milk chilling centres in three states, in addition to a 200,000-litre milk powder plant in Guntur and a 100,000-litre tetrapack milk packaging plant in Hyderabad, which was launched on Wednesday.

Announcing the future plans, B Brahma Naidu, managing director of Tirumala, who visited China’s supposedly largest dairy farm with 13,000 animals recently, said by far their project would be the largest of its kind. The company also proposes to set up a mini biomass power plant to meet the energy needs of the milk farm.

It has already acquired 3,000 acres of land in home district for raising grass and to establish the dairy farm, which will produce full range of milk products apart from milk. “We will be using only organic manure to grow grass for feeding the animals. The project will be ready by 2016-17,” he said.

“We are working with the management on raising funds for the project from various sources including overseas funds,” M Shankar Narayanan, managing director of Carlyle India Advisors Private Limited, said.

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