In the future, Aavin would turn to the mixture of energy sources like solar power, bio-briquettes and CNG etc to overcome the increase in the prices of fuels in its dairies. It is planning to invest Rs 100 crores in phases for saving electricity bills and furnace oil etc.
It is surprising to note that Aavin uses 50000 units and 35000 litres of furnace oil per day for various purposes. This also takes into account the generation of steam to run the boilers.
The cost of furnace oil shot up from Rs 45 per litre to RS 85 per litre. To make one litre of ghee from butter, 250ml of furnace oil is required. Truth is that the transportation costs have also increased now. There has been an increase in the cost of the packaging jars also. This was according to some sources belonging to the TN Cooperative Milk Producers Federation whose popular brand is Aavin.
The inflationary pressure on the butter is high and that was the reason why Aavin has increased the price of ghee. In its Chennai and in Madurai dairies, Aavin has poured money in solar plants and in CNG plants but they were small and standalone plants. It was revealed by an official from Aavin that the capacities must be increased. It must be noted that at present solar power plants contribute around just 5% of the total consumption.
The bio-fuel briquettes made by GCC would also be utilised by Aavin soon. The superb piece of information is that these various sources of power would reduce the Aavin`s dependency on power grid and furnace oil. Aavin has been working for the sake of making more profits for its milk pouring farmers. It is now said that these changes would be coming at the right time as the power bills would increase.