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Krishna Milk Union goes big with launch of second unit

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The Krishna Milk Union (KMU), popularly known for its brand Vijaya Dairy, has recently launched its second unit at Veeravalli village in Bapulapadu mandal of Krishna district. The new unit produces about 3 lakh litres of milk and 1 lakh litres of curd daily.

Speaking to The Hindu, KMU chairman Chalasani Anjaneyulu says that the KMU has set a target of procuring 10 lakh litres of milk from the farmers daily and has laid out steps in that direction.

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Fully automated unit

The estimated cost of the second unit was ₹180 crore. However, the construction cost was pegged at ₹158 crore. The production capacity was 4 lakh litres, and there was a scope for expansion up to 10 lakh litres a day. The KMU purchased 22.75 acres of land for the second unit, which is fully automated.

“We have invested in automation. All units can be controlled from a computer control room,” he says.

Mr. Anjaneyulu says the optimum utilisation of existing employees was done while launching the new unit. No fresh recruitments were taken up, thus cutting the expenditure. While the production cost was ₹2.5 per litre in the first unit, which is located in Vijayawada city,  it has come down to ₹1.25 per litre in the new unit for various reasons like automation.

“The KMU could create an asset worth ₹200 crore through the launch of the second unit,”  he says.

Quoting the National Dairy Development Board’s (NDDB) report, Mr Anjaneyulu says that the country reported 8% and 4% milk shortages in 2019-20 and 2020-21 years, respectively. The KMU, however, managed to maintain the milk collection to the required levels. In fact, the milk collection by the KMU rose by 17% in 2019-20, 14% in 2020-21 and 12% in 2021-22; it further grew by 15% in 2022-2023, despite the adverse conditions prevailing in the country, he says.

Mr. Anjaneyulu says that the KMU was paying more to the farmers than its competitors. The automation and other managerial practices adopted by the union helped pay bonuses to milk farmers. The KMU has been implementing various welfare schemes for the farmers by spending over ₹2 per litre of milk procured.

The welfare activities include ‘Krishna Ksheera Bandhu’, a compensation of ₹50,000 to family members in case of a farmer’s death, ‘Kalyanamasthu’, ₹20,000 worth of gold coin given during marriage in the family etc.

He adds that, in association with Varun Cardiac Centre, the KMU was helping the farmers undergo angioplasty, bypass surgery, stent implant, etc.

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