DAVOS: Tamil Nadu-based Milky Mist Dairy Food Ltd has signed a Memorandum of Understanding with the Government of Maharashtra to establish a large-scale milk processing and dairy products manufacturing facility in the state, with a proposed investment of nearly Rs 1,130 crore. The agreement marks a significant development for the Indian dairy industry and Maharashtra’s agri-processing landscape.
The MoU was signed at the World Economic Forum in Davos, Switzerland, by K Rathnam, Chief Executive Officer of Milky Mist Dairy Food Ltd, in the presence of Maharashtra Chief Minister Devendra Fadnavis.
Large Processing Capacity with Scope for Expansion
As per the agreement, Milky Mist Dairy will set up a milk processing plant with an initial capacity of 10 lakh litres per day, which will be expandable up to 25 lakh litres per day in subsequent phases. The facility will manufacture a wide portfolio of value-added dairy products, including paneer, yoghurt, curd, mozzarella cheese, ice cream, butter and ghee.
The project will be developed on a land parcel measuring approximately 1,94,866 square metres, or around 48.15 acres, allotted by the Maharashtra Industrial Development Corporation. The implementation will be carried out in a phased manner, in line with demand growth and procurement expansion.
Local Milk Procurement and Employment Generation
Milk procurement for the facility will be entirely sourced from within Maharashtra, providing a stable market for local milk producers and strengthening the state’s dairy supply chain. The project is expected to generate direct employment for about 800 people, contributing to regional economic development and rural livelihoods.
Such investments are increasingly important as dairy sector India continues to focus on organised processing, improved milk procurement prices and enhanced value addition amid changing consumption patterns.
Strategic Importance for Western India
Commenting on the development, K Rathnam said, “This MoU reflects our long-term commitment to strengthening India’s dairy value chain while creating sustainable economic opportunities for farmers and communities. Maharashtra’s progressive policies, robust infrastructure and strong milk-producing regions make it an ideal partner for our next phase of growth.”
The Maharashtra facility is expected to significantly strengthen Milky Mist Dairy’s market presence in Western India, complementing its existing operations and supporting long-term dairy market growth in the region.
Company Background and Earlier Reporting
Milky Mist Dairy Food Ltd was founded in 1997 by T Sathish Kumar, Chairman and Managing Director, in Erode district of Tamil Nadu. Over the years, the company has built a strong national footprint with a focus on branded, value-added dairy products.
Notably, Dairy Dimension had earlier reported in June 2025 on Milky Mist Dairy’s plans for a major dairy investment in Maharashtra, highlighting the company’s interest in setting up a large processing facility in the Baramati region. That earlier report can be accessed here:
https://dairydimension.com/baramati-dairy-investment-2025-south-india-plant/
The MoU signed at Davos now formally confirms those expansion plans, reinforcing confidence in Maharashtra’s dairy market and the broader Indian dairy industry outlook.
