Aavin: A Leading State-Run Dairy Cooperative

Location

Aavin is headquartered in Chennai, India, where it plays a crucial role in the city's and the broader region's dairy supply chain.

Financial Indicators

Aavin has faced significant financial challenges, incurring losses exceeding ₹2,000 crore over the past four years due to a reduction in milk prices. This situation necessitated securing a bank loan to provide incentives to producers. Despite these difficulties, Aavin has not received direct fiscal support, operating at a loss due to a ₹3 per litre retail price cut, resulting in an annual loss of nearly ₹550 crore.

Important Events

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

Company Plans

Aavin is focused on strengthening its market presence by enhancing production and supply capabilities. The establishment of two new dairies in Chennai is part of this strategic plan to ensure the availability of high-quality dairy products for consumers. Additionally, Aavin is under public pressure to lower milk prices following a Goods and Services Tax (GST) reform, with consumer welfare and agribusiness ethics being 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.

Modified: 2026/02/23