Founded in 2020 and operational since September 2022, Martin Dairy Products Pvt Ltd is a modern dairy company producing flavoured milk and other dairy products in Nepal. Established with £733,000 in equity and a £600,000 bank loan, the dairy has a state-of-the-art processing plant with a daily capacity of 20,000 litres and an in-house packaging facility for flavoured milk. Before the partnership, the dairy processed 500 litres daily in six flavours, with plans to expand into flavoured yogurt. Milk was sourced from approximately 1,000 farmers in Chitwan and Sarlahi, collecting 3,000-4,000 litres weekly.

The company is led by Mr Prakash Maharjan, a dairy sector expert with over 20 years of experience and a 50% stake in the business. He founded Martin Dairy to capitalise on the excess milk available during the flush season, aiming to create value-added products with a longer shelf life. Martin Dairy operates from Lalitpur, sourcing milk from Chitwan, Sarlahi, and Lalitpur, with a team of 17 full-time and two part-time employees.

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Commercialising Nepal’s Dairy Sector Through Innovation and Product Diversification

CASA’s Demand Assessment Study highlights a significant opportunity for product diversification in Nepal’s dairy market, primarily dominated by traditional products. With flavoured milk largely imported, Martin Dairy aims to fill this gap as a local competitor. Currently offering six flavours—vanilla, chocolate, saffron, cold coffee, strawberry, and pistachio—the company plans to expand into yogurt drinks.

The project had a budget of £93,303 of which CASA provided £33,375 for technical assistance and grants to assist with investment memorandums, connecting Martin Dairy with investors, and developing a targeted marketing strategy. The 15-month project from October 2023 to January 2025 reached 1,985 smallholder dairy farmers (60% women) with good management practice (GMP) training and a focus on promoting women’s participation in the dairy sector. The company attained ISO 22000 certification for its products, a critical step toward ensuring consistent product quality and gaining consumer trust, and increased its milk collection from 500 to 2,000 litres per day. 

Through this partnership, Martin Dairy was able to improve product quality, increase its supply base, and meet its operational goals, positioning itself as a strong local alternative to imported flavoured milk products. However, it did not yet secure needed investment to support growth and Martin Dairy still seeks £335,000 in equity investment for marketing and R&D, aiming to create up to seven new jobs and increase milk collection by 4,000 litres daily through GMP training for farmers.

Updated: August 2025