Sangam Milk Producers Company Ltd is targeting a turnover of ₹2,500 crore as it expands milk procurement, production capacity, product offerings and market presence across southern India.
Sangam Milk Producers Company Ltd, popularly known as Sangam Dairy, has outlined an expansion strategy aimed at taking its turnover to ₹2,500 crore. The company plans to increase milk procurement, establish new processing facilities, introduce new dairy and food products, strengthen its cold chain and expand into additional markets.
Speaking at the company’s annual general meeting, Sangam Dairy chairman and Ponnur legislator Dhulipalla Narendra Kumar said the company’s growth strategy would focus on farmer welfare, product quality, digitalisation, technology adoption and market expansion.
Milk Procurement and Collection Network
Sangam Dairy currently procures approximately 8.70 lakh litres of milk per day. Procurement had reached a peak of around 10.50 lakh litres per day during the previous year.
The dairy currently operates around 60 chilling centres and plans to establish another 10 milk chilling and collection centres by December. The expansion is expected to strengthen the company’s procurement network and improve its ability to source milk from farmers.
Sangam Dairy is also expanding its presence in Telangana. Daily milk procurement in the state has reached approximately 30,000 litres, while the daily supply of Sangam products in Telangana has increased to around 1.96 lakh litres.
Digital Technology for Farmers
Digitalisation is another important part of the company’s expansion strategy. Sangam is integrating milk collection centres and farmers through digital platforms.
A new society application is expected to allow farmers to access information about their milk procurement, fat and SNF levels and payments from their homes. Such digital access is intended to improve transparency and provide farmers with easier access to their milk-related records.
The company is also increasing its focus on preventive veterinary care and cattle productivity. It is promoting Ayurvedic fodder plants, providing a 50% subsidy for loose housing systems and implementing productivity enhancement programmes.
Support for Fodder and Silage
Sangam Dairy is providing a ₹1 per kg subsidy on silage to support farmers. The company has so far provided approximately ₹18 lakh in subsidies.
Farmers have demanded around 1,600 metric tonnes of silage, of which approximately 1,200 metric tonnes has already been supplied.
Expansion of Processing Capacity
The company is also investing in additional processing capacity. The capacity of its Miryalaguda plant is planned to double from 1.5 lakh litres per day to 3 lakh litres per day.
In addition, Sangam Dairy is constructing a new dairy plant on 25 acres at Naidupeta. The facility will initially have a processing capacity of 2 lakh litres per day, with provisions to expand the capacity to 4 lakh litres per day.
| Expansion initiative | Planned capacity/details |
|---|---|
| Current milk procurement | 8.70 lakh litres/day |
| Previous peak procurement | 10.50 lakh litres/day |
| Existing chilling centres | Around 60 |
| New chilling/collection centres | 10 |
| Miryalaguda plant | 1.5 lakh → 3 lakh litres/day |
| Naidupeta plant | 2 lakh → 4 lakh litres/day |
| Turnover target | ₹2,500 crore |
New Markets and Products
Sangam Dairy is planning to expand its market presence in Chennai and Rayalaseema. Alongside geographic expansion, the company is preparing to introduce new products, including protein milkshakes, millet idli and jowar idli.
The company is also strengthening its four-degree cold chain and installing advanced testing equipment. These measures are intended to maintain milk quality and improve the detection of adulteration.
Focus on Energy Efficiency
Sangam Dairy is pursuing technology-led measures to reduce energy and water consumption and control production costs. The company is exploring rooftop solar power installations at chilling centres and is conducting a trial involving a steam expander developed with an IIT-Madras startup.
The company also highlighted its opportunity to supply approximately 5.80 lakh kg of ghee to the Tirumala Tirupati Devasthanams, describing the supply opportunity as an important achievement.
With investments in procurement infrastructure, processing capacity, farmer services, digital platforms, new products and market expansion, Sangam Dairy is positioning these initiatives as part of its broader plan to achieve its ₹2,500 crore turnover target.