Namakkal, Tamil Nadu – The Indian dairy industry is on the verge of a significant transformation as an advanced ₹90-crore high-technology dairy processing plant in Namakkal nears completion. Supported by the National Dairy Development Board (NDDB), the facility has achieved 80% completion, with trial operations planned for November 2025 and full-scale production by January 2026.
Once operational, the fully automated plant will process up to 2 lakh litres of milk per day, making it one of Tamil Nadu’s largest dairy units. Its cutting-edge technology will streamline every stage of processing—milk chilling, pasteurisation, automated packaging, and dispatch—ensuring high quality and reduced wastage.
Project Announcement in 2023: A Vision for Dairy Modernisation
The project was first announced in November 2023 by the Tamil Nadu government. At the time, the state’s Animal Husbandry Department confirmed that the plant, to be set up at a cost of ₹89 crore, would be implemented on a turnkey basis by NDDB.
“The key objective of the scheme is to ensure the livelihood and economic upliftment of milk producers in the district while meeting future consumer demand,” said Mangat Ram Sharma, then Additional Chief Secretary of the Animal Husbandry, Dairying, Fisheries and Fishermen Welfare Department.
Government orders were issued in 2023, allowing the TamiCooperative Milk Producers’ Federation (Aavin) to entrust the project to NDDB, given its unique expertise in dairy infrastructure projects.
Farmer and Rural Benefits
The plant is expected to directly benefit over 15,000 dairy farmers in Namakkal and neighbouring districts by ensuring faster milk procurement and timely payments. Officials highlighted that reducing spoilage will significantly increase farmer profitability.
Additionally, the facility is projected to generate 1,000 indirect jobs in sectors such as transportation, packaging, quality control, and maintenance, further strengthening the rural economy.
Consumer Impact
For consumers, the plant will bolster the supply of Aavin milk and dairy products, reducing delivery delays and shortages, especially during festive demand spikes. Over 4 lakh people in Namakkal and the surrounding areas are expected to benefit from improved product availability.
“The Namakkal dairy plant represents a forward-looking investment in India’s milk supply chain. It addresses both farmer income stability and consumer demand, setting a model for other states,” said an Dairy Expert
Industry analysts believe the Namakkal facility could serve as a benchmark for modern dairy infrastructure in India, combining automation, efficiency, and a strong focus on farmer welfare.