Krishna Milk Union Clears ₹110-Crore Kamadhenu Project Loan In Record Time
The Krishna Milk Union has successfully repaid its ₹110-crore bank loan for the Kamadhenu Project in just 2.5 years, far ahead of its seven-year schedule. This achievement highlights the union's strong financial discipline, increased farmer payouts, and robust growth in processing capacity.
Highlights
- •Krishna Milk Union repaid a ₹110-crore loan for the Kamadhenu Project in only 2.5 years.
- •The Kamadhenu Project at Veeravalli features a daily capacity of six lakh litres, expandable to eight.
- •Operational resilience was proven when the plant maintained services during the 42-day closure of the Vijayawada unit.
- •KMU achieved a 168% growth in net worth and significantly increased milk procurement prices for local farmers.
The Krishna Milk Union (KMU) has achieved a significant financial milestone by successfully repaying its ₹110-crore bank loan for the Kamadhenu Project in record time. Originally structured as a seven-year repayment plan, the organization cleared the entire debt in just two-and-a-half years, demonstrating exceptional financial discipline and operational efficiency.
The announcement of this achievement took place during the Regional Workshop on White Revolution 2.0, hosted at the Krishna Milk Union factory premises in Vijayawada. The Kamadhenu Project, situated at Veeravalli in the Krishna district, stands as a premier facility in the region, reflecting the long-term vision for local dairy farmers.
Financial Growth and Infrastructure Impact
Under the leadership of chairman Chalasani Anjaneyulu, the Krishna Milk Union has focused on modernizing its infrastructure and increasing farmer payouts. The Kamadhenu Project is a state-of-the-art, fully automated dairy plant. Remarkably, the facility was constructed for ₹163 crore, well below the initial estimate of ₹185 crore. Currently, the plant boasts a processing capacity of six lakh litres of milk per day, with strategic planning in place to expand this output to eight lakh litres in the coming years.
The operational resilience of this project was clearly demonstrated during the Budameru floods. When the main Vijayawada factory faced a 42-day shutdown—which incurred losses totaling ₹24 crore—the Kamadhenu Project successfully absorbed the entire processing load. This ensured that both farmers and consumers experienced no interruptions in service during the crisis.
The union's growth trajectory remains robust. Over the past seven years, milk procurement has surged by 71 per cent, reaching 10.33 crore litres. Furthermore, the procurement price has been raised to ₹850 per kg fat, representing an increase of ₹280 per kg fat. Over the last five years, more than ₹250 crore has been distributed to farmers as bonuses, with ₹45 crore allocated in the 2025–26 fiscal year alone. Financially, the Krishna Milk Union has seen its annual turnover climb by 78 per cent to ₹1,273 crore, while its net worth has impressively grown from ₹95 crore to ₹256 crore, marking a 168 per cent increase.
The event was attended by notable figures including Dayanand Sawant, central deputy commissioner for Dairy Development, Ajay Yadav of the Tamil Nadu Cooperative Milk Producers Federation, and Romy Jacob from the National Dairy Development Board.
