Chitawon Milk (P) Ltd is yet another venture of Chitawon Co-E Group. The Company is established with the sole purpose of producing skimmed Milk Powder (SMP), Baby Food and other high value products such as Yogurt, Butter, Ghee, etc.

It would be the first SMP Plant in the private sector in Nepal and would cater about 30% of the domestic market demand.

With the establishment of Powder Milk Plant the major problem of milk produces i.e. milk holiday will be dealt with to a larger extent. SMP can be stored for a longer period of time and the plant can take in surplus milk supply even in the flush season and hence milk farmers would be encouraged and motivated to produce more milk than their usual production. This will benefit the economic condition of the farmers as well as the national economy.

The proposed plant site is situated at Thimura at Bharatpur Municipality, Ward No. 1 of Chitawon District. The proposed plant capacity would be 10 tons of liquid milk processing and 15 tons of powder milk production in order to facilitate capacity enhancement of the plant to 15 tons per day. At present the capacity at 100% would be 10 tons for both SMP and liquid milk processing.

The Company has entered into a turnkey agreement for machinery supply, supervision and commissioning with GEA ProcessEngineering (India) Ltd (GPINL) Vadodora, India, on 30th November 2006. The plant layout detailing including factory building layout has been finalized and construction is to be started within July/August 2007. Letter of Credit for machinery has been opened in favour of GPINL.

The project is funded by the consortium of following local Banks:

1. Nepal Investment Bank Ltd - Lead Bank

2. Nepal Bank Limited - Partner in Consortium

3. Bank of Kathmandu - Partner in Consortium