Indian Dairy Manufacturing Company (IDMC), an arm of National Dairy Development Board (NDDB), has launched its second phase of the plastic pouch packaging film plant.

The first phase was set up in 2006, with an objective to provide low cost, high quality packaging pouches for milk cooperatives. Of the total customer base, IDMC has about 85 per cent customers from milk cooperatives.

With the second phase, the total capacity has been increased from 9,000 tonnes per annum to 12,000 tonnes per annum of food grade poly films and laminates.

“We had invested around ₹37 crore for the first phase. We added an investment of around ₹35 crore in the last two years for the second phase of expansion. In the next fiscal, we plan to invest ₹40 crore to set up facilities for a seven-layer film, which will be used not only in milk but other food products,” said Ravi Shankar, Managing Director of IDMC.

IDMC office
                              IDMC office

IDMC expects to achieve a total turnover of ₹500 crore for the fiscal year 2015-16. However, besides plastic poly-films, IDMC is engaged in dairy equipment, including bulk milk coolers and portable milking machines. About ₹370 crore of revenue comes from metal products, while ₹130 crore comes from plastic products.

Speaking on the overall milk supplies scenario, Chairman of NDDB, T Nanda Kumar, maintained that no relief is expected any sooner from the lower global milk prices.

“Exports are down. It seems the current scenario will continue. Even as global milk prices have gone down, there is no likelihood of domestic milk prices falling. The prices of some cattle-feed ingredients continue to rise, which hurts milk producers. So, lowering of milk prices will affect farmers. But in the current scenario, milk prices may not rise either,” he said, after inaugurating the plant.

Apart from augmenting IDMC’s existing capacities, the second phase will infuse new capabilities in IDMC to offer alternative printing technology for customers who prefer rotogravure printing over flexographic printing, laser scoring on laminates and pouches, and multi layer barrier films which can provide longer shelf life for food products.