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Kwality to invest in expanding dairy operations

Monday, 24 Mar 2014
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Kwality, the dairy major, is looking forward to investing about Rs 300 crore for expanding its dairy operations.

 

The company is looking forward to expanding its milk procurement and processing capacity in order to expand its base in value-added products such as cottage cheese and flavoured milk.

 

At present, Kwality has six milk processing units with a total capacity of 30 lakh ltr a day and is planning to expand its milk procurement network in Rajasthan, Haryana, Uttar Pradesh and Punjab. It is also planning to increase its chilling centre from the existing 22 to 90.

 

The company intends to increase the share of milk which is directly procured from farmers, to about 50 per cent of the total milk sourced, in a period of about two to three years.

 

Also, it is in the process of installing equipment to manufacture products such as cottage cheese, flavoured milk and yogurt, at three of its processing plants.

 

The NCR-based company sells pouched milk under its 'Dairy Best' brand and is also known for its curd, ghee and skimmed milk powder (SMP).

 

In order to expand its dairy operations, Kwality is finalising its investment plans and is looking forward to funding the expansion, partially through debt and internal accruals.

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