Hi-Tech dairy plant to be commissioned in Namakkal in February

A hi-tech dairy plant, that is upcoming in Namakkal at a cost of ₹89.28 crore, will be commissioned next month (February) and the trial run of the plant has begun.

The Namakkal Aavin that was bifurcated from Salem Aavin in December 2018 has 537 village-level dairy cooperative societies (DCS), of which 504 are functional. As there is no separate plant for Namakkal Aavin, raw chilled milk is sent for processing to Salem Aavin and the packaged milk, of about 70,000 litres of milk, is received. In July 2022, the Namakkal Aavin submitted a proposal to the National Dairy Development Board (NDDB) to avail themselves of the financial assistance to set up a new dairy plant with a capacity to process two Lakh Litres a Day (LLPD). 

In August 2022, the NDDB sanctioned an interest-bearing loan worth ₹64 crore for a period of 10 years with a three-year moratorium on interest payment. In March 2023, the project proposal was approved for ₹6.89 crore grant-in-aid assistance from the Ministry of Food Processing Industries under Pradhan Mantri Krishi Sinchayee Yojana (PMKSY). Namakkal Aavin also contributed ₹18.39 crore, totalling the cost of the project to ₹89.28 crore. 

Officials attached to Namakkal Aavin said the construction of the plant is almost over and the trial run of the plant started on Friday (January 16, 2026). Through this plant, milk will be procured directly from 310 villages, creating an indirect employment to 58,546 farmers, 504 DCS, and 50 logistics providers and support the livelihood of around 1.22 lakh people in the district. The plant will generate direct employment for 150 people, officials added.