Aavin Expands with Two New Dairies to Double Chennai Supply
Amid intensifying competition from private players like Amul, Tamil Nadu's Aavin is ramping up its infrastructure to defend its market share in Chennai. Two new dairies—one in Madhavaram (1 million litres/day) and another in Acharapakkam (100,000 litres/day)—are slated to start operations by March 2026. This expansion will push Aavin’s Chennai supply capacity from 11 lakh litres/day to a robust 22 lakh litres, effectively doubling its current footprint .
This move comes in response to growing market pressure, with private dairies commanding higher prices and expanding supply rapidly. Aavin’s existing flagship products, such as the “Green Magic” standardized milk variant, have garnered demand, although supply remains limited to monthly cardholders. Retail trends indicate a preference for full-cream and toned milk packs, with calls for Aavin to better align offerings with consumer preferences .
On the sustainability front, Aavin is enhancing its environmental stewardship. The Ambattur dairy’s sewage treatment plant, currently processing 3.3 lakh litres/day, is being upgraded to 7 lakh litres/day by end-2025. Certification by IIT Madras confirms its current capacity at 700 KLD, and final approvals from the pollution control board are underway .
Procurement incentives totalling ₹342.14 crore have been disbursed since December 2023 directly to cooperative unions, bolstering farmer engagement amid broader supply chain enhancements. The organization is also reviewing dealer commissions (currently ₹1.5–2 per litre), with potential revisions aligned with any future price recalibration .
Industry Insight
Strategic capacity expansion, aligned with eco-friendly upgrades and farmer incentives, positions Aavin for competitive resilience in metro dairy markets—vital as private players and consumer preferences shift dynamics.
Source : Dairynews7x7 June 23rd 2025