Anand: The stressed dairy industry in Sri Lanka, which is trying to recover from an economic crisis, is likely to receive a revitalization as the Anand-headquartered National Dairy Development Board (NDDB) and the Gujarat Co-operative Milk Marketing Federation (GCMMF) are poised to acquire a majority stake in a new joint venture company.

A strategy for the rejuvenation of the dairy industry in the neighbouring county, which imports 60% of its milk, is being outlined in Gujarat. Reports indicate that Sri Lanka plans to incorporate dairy farms currently managed by MILCO, a government-owned organisation, along with its brand, Highland, into this new joint venture.

Sri Lanka’s President, Ranil Wickremesinghe, established a committee last year, comprising representatives from both the public and private sectors, to collaborate with the NDDB and devise a roadmap for increasing local milk production and reducing dependence on imported milk powder.

Furthermore, a joint declaration of intent (JDI) has been signed by the Indian and Sri Lankan governments. The finalisation of the details is expected within a week, as the necessary agreement is nearing completion, as per NDDB Chairman Dr. Meenesh Shah. He also mentioned that the shareholder agreement, which will pave the way for the establishment of a joint venture involving Indian and Sri Lankan stakeholders, is currently in its final stages of preparation.

GCMMF’s Vice Chairman, Valamji Humbal, disclosed that NDDB and GCMMF will jointly hold a 51% stake in the new venture, while Sri Lanka is in the process of selecting the local shareholder who will own the remaining 49%. Additionally, GCMMF, responsible for managing commercial aspects like marketing and branding, is in the process of formulating a business plan, including financial details. In contrast, NDDB will focus on the developmental aspects of the dairy sector, such as establishing cooperatives, breeding, fodder, nutrition, and more.

Humbal also emphasised that this partnership represents a significant step towards developing the dairy sector in the region and improving rural livelihoods. He added that they are in the final stages of finalising the business plan and financial aspects. DeshGujarat