KMF is the monopoly organization in collection and distribution of milk all over the Karnataka. In Darawad district it is collecting milk only from 57 out of 127 villages. It is not fulfilling the growing demand of milk and its products. So we are going to collect milk from villages those are still untapped by KMF, and after processing we distribute the milk to hotels and restaurants of Hubli in bulk.
Initially we start1000 Liters’ milk processing unit (MPU) in Kundagol taluk, which is 21km away from Hubli and in surrounding villages we set up the milk collection centers. Every day morning and evening through our vehicles we will collect the milk and store and process in Kundagol MPU and next day early morning we supply the milk to those hotels that have agreement with us. Initially we will take a building on rent to set up the office and MPU. We need one four wheeler vehicle, 1 milk collector, 1distributer, and one each office worker and promoter. To set this unit we need 8, 00,000 lakh rupees investment.
We collect milk in an average from Rs. 9 to 13 per litre. We are going to sell milk at Rs. 19 per litre. After deducting operational cost we are expecting Rs. 2000 per day. Within one year we will expand our Business to 3000 liters’ capacity unit.