Krishna Milk Union Achieves Rapid Debt Repayment Milestone

The Krishna Milk Union (KMU), based in Andhra Pradesh, has successfully repaid a substantial ₹110-crore bank loan in a record period of 30 months. This loan was initially intended to be paid over a seven-year term and was used to fund the cooperative's Kamadhenu Project in Veeravalli. The early repayment highlights KMU's financial discipline and the efficiency of its automated processing facility.

The Kamadhenu Project, a state-of-the-art processing facility, was constructed with an investment of ₹163 crore, notably less than the projected ₹185 crore. The facility boasts an intake capacity of 600,000 liters of milk daily, with the potential to expand to 800,000 liters. This facility played a crucial role during the Budameru floods, maintaining uninterrupted operations while the main factory in Vijayawada was shut down, thus ensuring steady market access for local dairy producers.

KMU's strategy has also included increasing the price paid to farmers for milk, now at ₹850 per kg fat, up by ₹280. This adjustment has led to a 71% increase in milk intake, reaching 10.33 crore liters. Over the last five financial cycles, KMU has distributed more than ₹250 crore in production bonuses to local farmers, including ₹45 crore in the 2025-26 financial year alone.

The cooperative's financial health has improved significantly, with annual turnover rising 78% to ₹1,273 crore and net worth increasing from ₹95 crore to ₹256 crore. KMU's achievements were recognized during the Regional Workshop on White Revolution 2.0, illustrating the benefits of vertical integration and advanced processing in insulating enterprises from market volatility and enhancing shareholder returns.