Karnataka Milk Federation (KMF) is scouting for investors to drive its six projects via public-private partnership (PPP) for which the land is already available. These include development of automated milk conversion plants, mega cattle feed manufacturing units, blown film plants, manufacture of corrugated boxes and construction of 2,000 metric tonne of cold chain storage facility and production unit for health drinks and ready-to-eat foods at a total investment cost of Rs 1,880 crore.
According to G Latha Krishna Rau, additional chief secretary and development commissioner, Government of Karnataka, efforts to give a fillip to agri infrastructure and dairy infrastructure are the focus areas at the three-day Invest Karnataka 2016 summit being held here. Now KMF has evinced interest in identifying the right partner to pursue its projects.
The total investment outlay is Rs 650 crore for the state-of-the-art Automated Milk Conversion Plants. It will include two milk powder plants each 100 MT capacity per day and processing facility for manufacturing of whole milk powder, skimmed milk powder, dairy whitener and so on with retail packaging of products. Each facility cost per plant will be Rs 325 crore. The project is proposed to be implemented at Doddaballapur or Dobaspete in first phase and Dharwad district in second phase.
For the fully automated mega cattle feed manufacturing plants, KMF stated that it would have a capacity of 500 MT per day for each plant. The project is proposed to be implemented under a PPP model at three locations. These are Vijayapura, Davanagere and Chikkaballapur/Mandya.
“We envisage the total cost of the project to be Rs 600 crore,” said Rajesh Singh, managing director, KMF, at the summit.
The federation is also looking for the development of blown film plants for manufacturing pouches. These films are used in packaging of milk in poly pouches flexi pouches and so on of capacity 500 MT per month for each plant in a phased manner. The project is proposed to be implemented at two locations in Bidadi, Ramanagar district, at a total cost of Rs 120 crore. Now at the same location, the company is also looking at manufacture of corrugated boxes. The plant will have a capacity of 1,500 million tonne per month. The federation has envisaged the total project cost to be Rs 50 crore.
The project for cold chain facility of 2,000 MT storage both at 40C and at -250C including mobile cold chain facilities like trucks and vans, needs to be implemented at two locations and in two phases. These are Hesarghatta in Bengaluru for the first phase and Mandya or Chikkaballapur for the second phase. The cost of the project is Rs 300 crore.
Further, KMF is also looking to expand its offering to health drinks, functional & ready-to-eat foods, flavoured milk, milk shakes and so on by setting up a manufacturing plant at a cost of Rs 160 crore. The facility will have a production capacity of 30,000 bottles per hour. The locations are for the first phase at Hesarghatta in Bengaluru and second phase at Mandya or Chikkaballapur.