Coimbatore | May 2025 — In a move to strengthen both its dairy retail presence and milk procurement ecosystem, Tamil Nadu's Minister for Milk and Dairy Development, Mano Thangaraj, inaugurated 'Paneer Hut', an exclusive outlet focused on value-added paneer sales, at RS Puram in Coimbatore.
The new initiative comes amid Tamil Nadu's broader dairy development goals under Aavin, the Tamil Nadu Cooperative Milk Producers' Federation Limited, which is now targeting an ambitious 40 lakh litres per day milk procurement, up from the current 35 lakh litres.
“We’ve instructed milk suppliers across all districts to work towards this enhanced target,” the minister stated during the launch.
🐄 Aavin Woos Farmers With Stability and Trust
In his address, Minister Thangaraj made a strong pitch to dairy farmers to join Aavin's cooperative network, emphasising that price stability and reliability remain the hallmark of the state-run federation.
“Unlike private players, Aavin maintains a constant price for farmers throughout the year, regardless of seasonal fluctuations,” he noted. “Even during natural disasters, we ensured milk delivery while many private firms halted operations.”
This consistent engagement with dairy producers positions Aavin as a resilient and farmer-first cooperative, a message aimed at increasing farmer enrollment in the face of rising private competition.
🥛 Clarifying Aavin's Full Cream Milk Pricing Strategy
Responding to concerns about the higher price of Aavin's whole cream milk, the minister explained that the 6% fat content in full cream naturally justifies its premium price, especially when compared to the Delight variant, which contains 3-4% natural fat.
“From a health standpoint, high-fat milk should be consumed judiciously. That’s why we price full cream higher and keep the Delight variant affordable to ensure accessibility,” he added.
The health-centric pricing rationale supports Aavin's nutrition-aligned dairy marketing strategy, offering consumers a reater choice based oon their etary needs.
🧀 Value-Added Dairy Products Drive New Retail Strategy
The launch of Paneer Hut reflects Aavin's strategic push into value-added dairy products—a sector witnessing rapid growth across India. Paneer consumption is extreme in urban centres and continues to gain popularity among health-conscious and vegetarian consumers.
By launching exclusive retail formats, Aavin is diversifying revenue streams, promoting high-margin dairy segments, and expanding its brand presence beyond traditional milk and curd products.
