Sterling Agro Industries Limited, which markets dairy products under the Nova brand, plans to invest approximately Rs 300 million to expand the capacity of its dairy processing plant in Malanpur, Madhya Pradesh. The company’s director, Ravin Saluja, shared this with Rural Voice. As part of a broader strategy to streamline operations, the company will shut down its Kasganj plant in Uttar Pradesh due to underutilization. Going forward, it will concentrate production at its facilities in Kundli, Haryana, and Malanpur, Madhya Pradesh.
Nova is an established name in the dairy sector, with a stronger focus on value-added milk products rather than liquid milk. According to Saluja, the company is targeting around 40% growth in the domestic market. To support this expansion, it is building a new procurement network across Uttar Pradesh, Madhya Pradesh, Bihar, and Rajasthan.
Saluja also highlighted the company’s growing emphasis on exports. Currently, around 20% of its output is shipped to markets such as Thailand, Indonesia, and other Asian countries. Key export products include ghee, milk powder, and butter oil. The company primarily operates in the business-to-business (B2B) segment, offering products such as ghee, cheese, milk powder, table butter, flavored milk, and yogurt.
“We are focusing on consolidating our business, and as part of this, we are expanding production capacity and making fresh investments,” Saluja said. On milk procurement, he noted that the company largely sources milk through vendors. However, rising milk prices have significantly increased costs this year, with procurement prices reaching about Rs 59 per litre for buffalo milk with 6.5% fat.
Saluja pointed out that government policies tend to favor the cooperative sector, creating a challenging environment for private players. In several states, subsidies are provided on milk procured by cooperatives, which, he argued, goes against the principle of a level playing field and fair competition.
Commenting on the rise of startups in the dairy sector, Saluja observed that many are focusing on niche, high-value products such as A2 milk, cheese, and protein-rich offerings. These premium segments help companies attract investor interest and funding. However, this trend is also intensifying competition and causing disruption in the premium business-to-consumer (B2C) market.
He further emphasized the role of regulatory authorities in ensuring market integrity. According to him, strict oversight is needed to prevent the sale of adulterated and counterfeit dairy products. Effective regulation would benefit farmers, consumers, and the industry alike, while also helping maintain market stability and avoid unnecessary volatility.
“Our focus is on strengthening brand loyalty and enhancing our brand reputation,” Saluja said. “We aim to meet evolving market expectations by consistently adhering to high quality standards.”