Chennai-based dairy firm Hatsun Agro Product Ltd (HAP) has completed the acquisition of a cattle-feed plant, Madhur Pashu Aahar, located at Solapur, Maharashtra for a total of Rs 10 crore including modernisation.
The facility, with a total production capacity of l00 tonnes of cattle feed a day, will help HAP in expanding its feed business in the region.
Currently, HAP manufactures ‘Santosa’ brand of cattle feed and has a daily manufacturing capacity of 900 tonnes. With the acquisition, the total capacity of Santosa cattle feed has gone up to 1,000 tonne a day.
R G Chandramogan, chairman and managing director, Hatsun Agro Product Ltd, said the company will modernise the Solapur plant with the latest equipment and upgrade the lab-testing facilities.
The acquisition and subsequent modernisation will cost around Rs 10 crore. A key reason for acquiring this factory is to save the transport cost of Rs 2 per kg being currently incurred for transporting the feed from HAP's existing plant in Tamil Nadu all the way to Maharashtra.