Krishna Milk Union expands operations with launch of second unit

INDIA – The Krishna Milk Union (KMU), an Indian dairy processor, renowned for its Vijaya Dairy brand, has inaugurated its second unit in Veeravalli village, Bapulapadu mandal, Krishna district.

The new facility, fully automated and equipped with cutting-edge technology, boasts a daily production capacity of 3 lakh litres of milk and 1 lakh litres of curd.

KMU Chairman, Chalasani Anjaneyulu, revealed that the union has set an ambitious goal of procuring 10 lakh litres of milk from farmers daily, signaling a substantial increase in production and procurement capabilities.

The estimated cost for establishing the second unit was ₹180 crore, with the construction cost amounting to ₹158 crore.

Emphasizing the efficiency brought about by automation, Anjaneyulu stated that the new unit’s production cost has significantly decreased from ₹2.5 per litre in the first unit, located in Vijayawada city, to ₹1.25 per litre.

“The KMU has strategically utilized existing employees during the launch, avoiding new recruitments and effectively managing expenditure,” he said.

“With a production capacity initially set at 4 lakh litres, the second unit allows for potential expansion up to an impressive 10 lakh litres per day.”

The chairman also revealed that the KMU acquired 22.75 acres of land for this venture, reflecting its commitment to scaling up operations and meeting the growing demand for dairy products.

Quoting the National Dairy Development Board’s report, Anjaneyulu highlighted the country’s milk shortages of 8% and 4% in 2019-20 and 2020-21, respectively.

Despite these challenges, the KMU managed to maintain its milk collection to the required levels and experienced consistent growth in collection percentages, showcasing its resilience and efficiency.

Anjaneyulu further noted that the KMU has been paying farmers more than its competitors, attributing this success to the implementation of automation and sound managerial practices.

He added that the union has not only prioritized the economic well-being of farmers but has also undertaken various welfare schemes, spending over ₹2 per litre of procured milk.

“Among the welfare initiatives, ‘Krishna Ksheera Bandhu’ offers a compensation of ₹50,000 to the family members in case of a farmer’s death, while ‘Kalyanamasthu’ presents a ₹20,000 worth of gold coin during family marriages.”

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