The Karnataka Co-operative Milk Producers' Federation (KMF) is planning to set up seven production units with an estimated total investment of Rs 430 crore.

Under the plan, the company is likely to set up three powder plants near Bidadi on the outskirts of Bangalore, in Mysore, and the third one at Tumkur or Kolar at a total cost of Rs 270 crore. The company will invest Rs 90 crore in each plant.

KMF had sought financial support from the state government to set up these plants to the extent possible, with the remaining funds proposed to be raised as loan from the National Dairy Development Board (NDDB).

Meanwhile, the company will raise Rs 160 crore for setting up four 'flexi plants' for providing milk to school children. These flexi units will be set up in Channarayapatna, Tumkur, Dakshina Kannada and Belgaum with a capacity of 800,000 ltr.

This apart, a milk tetrapack unit will also be set up with a capacity to handle 1,50,000 ltr per day.