Chimul to set up milk packing unit on 9.14 acres in Chikkaballapur

Deccan Herald

29-07-2025

Chikkaballapur: The Chikkaballapur Co-operative Milk Union (Chimul) has taken a major step toward self-reliance by initiating the construction of its own milk and curd packing unit. Currently, Chimul depends on mother dairy units in Kolar, Hoskote, and Yelahanka, incurring monthly expenses of Rs 2 to 2.5 crore for packaging.This will be the union's first major infrastructure project since its formation, and officials estimate that a local facility will reduce the operational cost by at least Rs 2 crore each month. Currently, the mega dairy in Chikkaballapur does not have the capacity to handle daily packaging operations. Earlier, during its affiliation with the Kolar Co-operative Milk Union, packaging was done in Kolar and transported to Chikkaballapur. After the formation of Chimul, establishing a dedicated unit was prioritised.To facilitate the project, the Karnataka government has allotted 9.14 acres of land adjacent to the Horticulture Department in Chikkaballapur. In return, Chimul has transferred 9.38 acres near Chikkadasarahalli in Shidlaghatta taluk to the department. The land rights have officially been transferred to Chimul, and the area near Doddamarali, adjacent to the Mega Dairy, has been earmarked for the construction of the new unit.DPR by Chennai firmThough the proposal was approved in a 2023 KMF (Kochimul) board meeting, land availability had delayed execution. As per directions from the Kochimul Board, a Chennai-based private firm was engaged to prepare the Detailed Project Report (DPR). The technical team visited the Mega Dairy, consulted with Chimul officials, and submitted the project report.The project's DPR, with an estimated cost of Rs 130 crore, includes provisions for packaging milk, curd, spiced buttermilk, and other dairy products, along with scope for future expansion.The Mega Dairy, which currently spans 14 acres, handles tetra pack, flexi-pack, butter, and ghee production. The new 9.14 acre unit will focus exclusively on daily packaging requirements.Chimul supplies milk and curd to the Bengaluru market also, with packaging currently done outside the district. With its own facility, officials say, the Union can reinvest savings into offering better prices to farmers.'A packing unit is an urgent need. Once completed, it will reduce external dependency and improve margins. If necessary, the DPR will be expanded to accommodate future needs,' sources in Chimul said.Current operationsChikkaballapur Co-operative Milk Union (Chimul) currently gets three lakh litres of milk and curd packaged through units in Kolar, Hoskote, and Yelahanka every day. The union receives more than five lakh litres of milk per day. Of this, three lakh litres are used for milk and curd packaging, one lakh for UHT milk, 40,000 litres for flexi-pack milk, 20,000 litres for paneer, and 50,000 to 60,000 litres for butter, ghee, and milk powder.