Aavin gets ready for poly film unit in Ulundurpet

Officials said that the proposal okayed by the Aavin Board has been forwarded to the state government for further action. 

The milk major presently procures poly film, which is used to package milk in various quantities, from a private vendor at Rs 88 crore per year.

“The board gave its nod to the proposal keeping in mind Anand Milk Union Limited’s (AMUL) vision of becoming self-sustained in infrastructure facilities,” officials added.

“The plant will be a joint venture (JV) with the Indian Dairy Manufacturing Company (IDMC), a subsidiary of the National Dairy Development Board (NDDB), with 50:50 investments,” officials said. 

Aavin currently uses around 4,400 metric tonnes (MT) of poly film annually. “Hence having an own plant to produce poly film was savvy, business-wise” officials added. 

The proposed plant, expected to go on stream in two years, will be set up on Aavin’s own land measuring 7 acres in Ulundurpet town. Its production capacity will be 5,000 MT per annum. 

A buffer of 600 MT has been included to ensure sustained poly film production when production increases over the next two years, it was said. 

“The project will have a Rs 29 crore share capital with the rest of the funds being raised from financial institutions,” sources added. Matters are expected to move further by the end of October when IDMC’s board is expected to clear the project.