Milking the market: Aavin aims for 65% share in five years

Aavin has ramped up its milk procurement, averaging 33.18 lakh litres per day (LLPD) in the 2024-25 financial year (up to January 2025).
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VENKATACHALAPATHY _C

Aavin, Tamil Nadu’s government-run dairy cooperative, has set an ambitious goal to expand its market share to 65 per cent over the next five years, up from its current level of over 50 per cent. This target is driven by rising consumer demand and enhanced milk procurement strategies.

Over the past three years, Aavin has gained approximately 15 lakh new consumers, boosting the sales of milk sachets in Chennai and contributing to its market expansion, as outlined in the Dairy Department’s 2025-26 Policy Note.

Aavin said its several initiatives have led to a significant 14 per cent rise in daily milk sales over three years, increasing from 26.41 LLPD in 2021-22 to 30.20 LLPD in 2024-25. This growth is further reflected in milk product sales, which have reached ₹505.92 crore for the 2024-25 financial year (up to January 2025). In FY24, sales of Aavin’s dairy products stood at ₹523.48 crore.

To cater to evolving consumer preferences, Aavin launched its fortified milk variant, Aavin Delite, on October 9, 2022. Enriched with Vitamins A and D, the product has gained strong traction, with daily sales reaching 5 lakh litres.

Aavin has ramped up its milk procurement, averaging 33.18 lakh litres per day (LLPD) in the 2024-25 financial year (up to January 2025). This marks an increase of 4.51 LLPD compared to the previous year. The highest single-day procurement was recorded at 37.80 LLPD on August 28, 2024.

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Aavin continues to be the only cooperative dairy in India offering subsidized monthly milk cards, benefiting 4.5 lakh consumers with discounts ranging from ₹1 to ₹14 below the maximum retail price.

To further strengthen its production capacity and expand its market reach, Aavin is investing in several infrastructure projects. In Tiruchirappalli, a 6,000-litre-per-day ice cream plant worth .₹43.41 crore is set for completion by June 2025.

In Thoothukudi, a 50,000-litre-per-day dairy processing plant under DIDF (Dairy Processing and Infrastructure Development Fund), costing .₹46.66 crore, is expected to be completed by May 2025.

Thanjavur will see the establishment of a 1-lakh-litre-per-day dairy processing plant, valued at ₹5,3.55 crore, slated to be operational by March 2026.

In Chennai (Madhavaram), a large-scale 10-lakh-litre-per-day dairy facility under DIDF, with an investment of ₹142.19 crore, is scheduled for completion by March 2026. Currently, this plant processes 5 lakh litres of milk daily. Additionally, a 1-lakh-litre-per-day dairy processing unit under the PMFME scheme is being developed at Acharapakkam at a cost of about ₹10 crore.

Published on April 4, 2025