FMCG major CavinKare on Wednesday launched ultra high temperature (UHT)-treated milk - Cavin's Pure+ -, which can last for 120 days, without using refrigerator.
CK Ranganathan, CMD, CavinKare Pvt Ltd, said the product was yet another step towards consolidating company's position in the dairy segment. Over the last few months, it has launched Cavin's Ghee and Cavin’s Flavoured Milk.
The processing technology was sourced from Holland, while the packaging was developed in association with a Mumbai-based packaging company.
The company is planning to roll out the product first in Tamil Nadu. “In the first year, we are targeting Rs 60-65 crore revenue from this product,” said T D Mohan, joint MD, CavinKare.
It would produce the milk from its facility at Bhavani, TN, where it has production capacity up to 100,000 litres. “Once we reach the full capacity the revenue, from this product can be around Rs 100 crore,” he said.
Based on the success, the company would look at launching it in other parts of the country. “One of the biggest challenge is procurement of milk,” Ranganathan said. The company has tied up with 11,000 farmers, who are in 50 km radius from the plant, so that the milk reaches the plant in less than 3-4 hours and can be processed and packed within half day.
According to Aldrin Joseph, brand manager for dairy segment— CavinKare, the UHT milk market in India is estimated to be around Rs 385 crore, of which Rs 250 crore are through modern trade. The south Indian market estimated to be around Rs 200 crore.
