Aavin: A Leading State-Run Dairy Cooperative

Location

Aavin is headquartered in Chennai, India, where it serves as a vital component of the city's and the broader region's dairy supply chain.

Financial Indicators

While specific financial figures are not publicly disclosed, Aavin's efforts to double its milk supply capacity in Chennai suggest a strong financial foundation and a commitment to infrastructure growth. However, the cooperative has encountered financial difficulties, incurring losses exceeding ₹2,000 crore over the past four years due to a reduction in milk prices. These challenges have necessitated securing a bank loan to offer incentives to producers.

Important Events

To meet the rising demand for milk in Chennai, Aavin has announced the launch of two new large processing plants. This strategic move is crucial for doubling the current milk supply capacity and aligns with Aavin's mission to enhance dairy infrastructure in the region.

Company Plans

Aavin aims to strengthen its market presence by enhancing production and supply capabilities. Establishing two new dairies in Chennai is part of this strategic initiative, ensuring the availability of high-quality dairy products for consumers. Additionally, Aavin faces public pressure to lower milk prices following a Goods and Services Tax (GST) reform, with consumer welfare and agribusiness ethics central to these calls. As Tamil Nadu's largest dairy cooperative, Aavin distributes millions of milk sachets daily, which also serve as a medium for disseminating voter-awareness messages, particularly in semi-urban and rural areas.

Despite financial challenges, Aavin has not received direct fiscal support while operating at a loss due to a ₹3 per litre retail price cut, resulting in an annual loss of nearly ₹550 crore. The government allowed the cooperative to clear some incentive arrears using internal funds from the Milk Cooperative Federation and profit-making district cooperative unions.

Modified: 2026/01/07

---