INDIA – The Telangana government is stepping up its support for the dairy sector, with a recent announcement highlighting the efforts of Chief Minister A. Revanth Reddy.
According to Telangana State Dairy Development Cooperative Federation (TSDDCF) Chairman Gutta Amit Reddy, the state has released Rs 50 crore for the industry and allocated an additional Rs 10 crore to clear outstanding payments to dairy farmers.
During a recent visit, Amit Reddy highlighted the dairy’s increased milk sales, following state guidelines to supply Vijay Dairy milk to public institutions like jails, temples, hospitals, and Anganwadi centers.
Despite this support, challenges remain: while the dairy procures 4.4 lakh liters of milk daily, it only sells 3.2 lakh liters, leading to the surplus being converted to milk powder and butter, adding financial pressure.
Collector Hanumanthu called on dairy farmers to actively support Vijay Dairy’s growth and profitability, reiterating the district administration’s commitment to advancing the dairy’s development.
He praised the purity of Vijay Dairy milk, urging the community to promote it widely for higher sales and profitability.
The larger Indian dairy industry, integral to the nation’s agricultural economy, is simultaneously witnessing transformative policy-driven growth.
Recent budget announcements on February 1, 2024, underscored a focus on boosting the productivity of milch animals, with Finance Minister Nirmala Sitharaman emphasizing efforts to uplift the sector.
Enhanced government-backed schemes and programs are in effect to bolster dairy output and efficiency nationwide.
Meanwhile, in the private sector, dairy tech startup Country Delight is making strides by securing INR 200 crore in debt funding from Alteria Capital to enhance its operations and expansion.
Founded in 2015 by IIM Indore graduates Chakradhar Gade and Nitin Kaushal, Country Delight specializes in the direct delivery of milk and essentials like ghee, paneer, and eggs to customers.
The company’s model, reaching over 1.5 million subscribers in 15 cities, prioritizes direct farmer-to-consumer supply, with its recent capital raise aimed at scaling expansion efforts and fueling marketing initiatives in preparation for a future IPO.
This fresh infusion of funds, particularly relevant amid India’s “funding winter” affecting venture capital availability, marks a crucial move as more tech companies leverage debt financing to continue growth and innovation.
Alteria Capital’s cofounder Vinod Murali highlighted Country Delight’s strategic use of this funding to strengthen its market position and streamline financial operations as it works towards an IPO.
This debt funding trend is reflected in other notable tech companies; for instance, agritech startup WayCool recently closed a debt round of INR 100 crore, while B2B ecommerce company Udaan secured INR 300 crore.
According to Inc42 data, debt raised by Indian tech companies in the first half of 2024 more than doubled year-over-year, reaching US$576 million—a clear indicator of how startups are strategically navigating current funding constraints to sustain and scale their business operations.
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