The milk procurement by the co-operatives in Karnataka has steadily increased over the years due to the efforts and policies favouring milk production. The infrastructure of the milk co-operatives in the state was found to be insufficient for handling the excess milk.
In order to meet the increased processing requirement, Karnataka Milk Federation (KMF), in consultation with National Dairy Development (NDDB), conceived to setup a product dairy of 400 TLPD with 30 MTPD powder plant in the year 2005 at Channarayapatna, Hassan Dist (Karnataka), a strategic location to handle the surplus milk of Hassan, Mandya, Mysore and Tumkur milk unions.
The project was executed by NDDB on turnkey basis at an estimated cost of Rs.69.43 crores.
The plant is now under expansion from 30 MTPD to 60 MTPD with processing facilities expansion from 4 LLPD to 7LLPD at an estimated project cost of Rs. 97 crores.