Aavin’s new milk powder plant in Salem is set to commence commercial production by February 2026, marking a major boost to Tamil Nadu’s dairy processing capacity. The ₹60-crore project, which began construction in February 2024, is nearing completion with 80% of the work already finished.
Once operational, the new facility will triple production capacity from the current 10 metric tonnes per day to 30 metric tonnes per day, making it the largest and most advanced milk powder unit in the state.
Advanced Technology for Efficiency
The six-storey plant, with civil works completed on five floors, will run on a computerised SCADA (Supervisory Control and Data Acquisition) system, ensuring automated temperature control and equipment monitoring.
Milk concentration will be carried out using a five-effect falling film evaporator with thermal vapour recompression (TVR) technology. This process reuses steam across multiple stages, significantly reducing energy consumption while efficiently removing water from milk to produce powder.
Range of Products
From the new facility, Aavin will produce:
- Whole Milk Powder
- Skimmed Milk Powder
- Dairy Whitener
These will be available in both 25-kg bulk packs for large buyers and 200g, 500g, and 1kg retail packs for households.
Meeting Rising Milk Demand
Currently, Aavin (Salem) procures 6.5 lakh litres of milk daily from 2.25 lakh farmers across 787 primary societies. Of this, 3.5 lakh litres are supplied to other cities, 2.5 lakh litres cater to the Salem market, and 50,000 litres are processed into value-added products like butter, ghee, curd, buttermilk, paneer, khova, and milkshakes.
The new facility will strengthen Aavin’s ability to handle high procurement volumes and expand its product line with longer shelf-life dairy products.
Tamil Nadu’s Growing Dairy Hub
With existing milk powder plants in Erode, Madurai, Tiruvannamalai, and Salem, the upcoming Salem expansion will make it the state’s largest milk powder manufacturing unit.
“With the expansion of milk powder plant capacity from 10 to 30 metric tonnes per day and the addition of advanced machinery, the Salem plant will become the most modern and largest capacity milk powder unit in the State,” said P. Kumareswaran, General Manager of Aavin, Salem.
The plant is expected to be fully ready by December 2025, with trial runs before its formal launch in February 2026.

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