High-Tech Dairy Plant in Namakkal to Begin Operations in February

A new high-tech dairy plant in Namakkal district, Tamil Nadu, is scheduled to begin operations in February, with an investment of ₹89.28 crore. The Namakkal Aavin, a division separated from Salem Aavin in 2018, has been operating without a dedicated processing facility, relying on Salem Aavin for processing raw milk. The new plant will alleviate this dependency by processing two lakh litres of milk daily.

The project received financial backing in the form of a ₹64 crore interest-bearing loan from the National Dairy Development Board (NDDB) in August 2022, with a ten-year term and a three-year moratorium on interest payments. Additionally, a grant-in-aid of ₹6.89 crore was approved by the Ministry of Food Processing Industries under the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) in March 2023. Namakkal Aavin contributed ₹18.39 crore to the project.

Construction of the plant is nearly complete, with trial runs commencing on January 16, 2026. The plant will procure milk directly from 310 villages, indirectly benefiting 58,546 farmers, 504 dairy cooperative societies, and 50 logistics providers. It is expected to support the livelihoods of approximately 1.22 lakh people in the district and provide direct employment to 150 individuals.