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COMPANY REPORT

Nestle plans JV with US co to set up milk powder plant in Baramati
Monday, 08 November, 2010, 08 : 00 AM [IST]
Our Bureau, Mumbai
Nestle is learnt to be in discussions with Schreiber Dynamix Dairies Ltd, a subsidiary of Schreiber International Inc., USA, for setting up a plant to make milk powder in Sharad Pawar’s hometown Baramati. The plant, which would require investments to the tune of Rs 150 crore, would be able to process 5 lakh litres of milk per day into powder resulting in the production of 5000 tonnes of milk powder every month. Nestle India would be bringing the equipment, according to a report in The Financial Express.

“Nestle has been suffering in the North where there have been issues with milk quality. In Baramati, Schreiber is currently running 500 bulk coolers at 50% of their capacity in 500 odd villages. There is a plan to induct more cows and use milking machines as result of which the milk could be free from antibiotics and, therefore, there would be no quality issues,” said K M Goenka, chairman, Schreiber Dynamix Dairies.

Schreiber Dynamix Dairies has been operational in Baramati since 1996 and manufactures dairy products such as cheese, butter, ghee, milk powder and dahi. Britannia, Danone, GSK, Heinz, Hindustan Unilever, Mother Dairy and Nestle source products from Schreiber Dynamix. Cheese manufactured by Schreiber is supplied to Domino’s, McDonald’s, Papa John’s, US Pizza, Yum!, Pizza Hut and KFC.

In addition to Nestle, Schreiber Dynamix Dairies is working with the Danone Group to expand capacities for yoghurt to 18,000 tonnes per month. The company was considering a presence in the South for Tropicana that sources juices from it, Goenka said. He was speaking to media persons on the sidelines of the event held to mark the opening of the Sahayadri Cow Farm in Baramati.

Spread across 300 acres with a mix of best of the breeds of local and foreign cows including Holstein and Jersey cows, the Sahayadri Cow Farm is designed to produce milk to internationally prescribed quality and standards. The farm that is designed for 6,000 cows has been set up with an investment of Rs 40 crore to produce 80,000 litres of milk per day.

Sahayadri Agro Produce and Dairy, a part of Schreiber Dynamix Dairies and State Bank of India have collaborated for this project that will serve as a bull mother farm in the future where male calves with superior genetics would be made available to interested breeding organisations.
 
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