IDMC starts second phase of packaging film plant

Wednesday, Jan 20, 2016

Indian Dairy Manufacturing Company Ltd (IDMC), a wholly-owned arm of National Dairy Development Board (NDDB) on Tuesday launched its second phase of plastic pouch packaging film plant.

The first phase of the plant was set up in 2006 with an objective to provide low cost, high quality packaging pouches for milk cooperatives. IDMC supplies to most of the milk cooperatives in the country. Of the total customer base, IDMC has about 85 per cent customers from milk cooperatives.

With the second phase of expansion, the total capacity of the plant has been increased from 9,000 tonnes per annum to 12,000 tonnes per annum of food grade poly films and laminates.

"We had invested around Rs. 37 crore for the first phase. We added an investment of around Rs. 35 crore in the last two years for the second phase of expansion. In the next fiscal we are planning to invest around Rs. 40 crore to set up facilities for 7-layer film which will be used not only in milk but also for other food products," said Ravi Shankar, managing director, IDMC.

IDMC expects to achieve a total turnover of Rs. 500 crore for the fiscal 2015-16. However, besides plastic poly-films, IDMC is also engaged in the dairy equipment including bulk milk coolers and portable milking machines. About Rs. 370 crore revenues come from metal products, while Rs. 130 crore comes from the plastic products.

Speaking on the overall milk supplies scenario, T Nanda Kumar, Chairman, NDDB, maintained that no relief is expected any sooner from the lower global milk prices. "Exports are already down. It seems that the current scenario will continue for some time. Even as global milk prices have gone down, there is no likelihood of domestic milk prices to fall. The prices of some of the cattle-feed ingredients continue to rise and that hurts milk producers. So, lowering of milk prices will affect farmers. But in the current scenario, milk prices may not rise either," he said after inaugurating the plant at Vallabh Vidhyanagar near Anand.

Apart from augmenting IDMC’s existing capacities, the 2nd phase would infuse new capabilities in IDMC to offer alternative printing technology for customers who prefer rotogravure printing over flexographic printing, laser scoring on laminates and pouches and multi layer barrier films which can provide longer shelf life for food products.

The lines of business serviced by the company include liquid milk and milk products, edible oils, frozen vegetables, personal care products and other consumer goods.

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