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KSE palns foray into value-added milk products

V. Sajeev Kumar

KOCHI, Oct. 18

KSE Ltd, one of the leading manufacturers of cattle feeds and dairy products in Kerala, plans to enter into value-added milk products and special feeds in the next six months.

The Rs 150-crore company plans to first introduce ice creams, which is slated to hit the market by March next year. Different flavours suited for the domestic palate would be introduced in technical collaboration with a global player, Mr M. C. Paul, Chai rman and Managing Director of the company, told a group of visiting journalists at the plant site in Thrissur district.

The existing milk processing plant at Konikkara in Thrissur district would be utilised for making ice creams and around 2,000 litres of milk per day would be processed initially. The ice creams, to be marketed under the brand name KS, was expected to bre ak-even in the next three years, he said.

Mr Paul said the company had already introduced ghee, curd and butter milk in the Kerala market and plans were also on the anvil to bring out yoghurt and special flavoured milk soon. The foray into value-added milk products would not only increase the tu rnover but also make dairy operations more profitable, he added.

The company is also at an advanced stage of negotiations with a global market leader to produce and market new livestock feeds of international standards. This would be a totally new concept in feeding dairy animals and would have great potential, he sai d.

KS brand cattlefeed was made of natural feed ingredients and had no urea in it. A special mixture containing all required minerals and trace minerals, manufactured by KSE inhouse, was incorporated in all the range of feeds, Mr Paul said.

To face the emerging challenges, the company was negotiating with a leading international firm for exchange of technology and improved feed formulations to launch new varieties of cattle feed, Mr Anand Menon, Chief General Manager of the company, said.

Established in 1976, KSE has a consistent dividend track record. Over the past five years, it had distributed 67 per cent average annual dividend including 100 per cent dividend for 1997-98 and in real terms, the average annual dividend payout for these five years works out to Rs 214.40 lakhs.

Spread across Kerala, Tamil Nadu and Karnataka, the company has five cattle feed manufacturing plants with an aggregate capacity of 650 tonnes per day. It also manufactures poultry and duck feed and enjoys a good share in the Kerala market. It had taken up rural development as a major corporate task and responsibility as majority of the customers are from rural belt.

The company has also made arrangements for the supply of cattle feed to villagers directly from dealers and through retailers and also imparts advice and instructions regarding animal husbandry and cattle feed, Mr Menon added.