The dairy industry is the lifeline of rural India and one of the most critical pillars of the country’s food security and economic resilience. As the world’s largest producer and consumer of milk, India’s dairy sector sustains more than 80 million rural households, many of them smallholder farmers, and contributes nearly 5% to the national GDP. Beyond its economic role, dairy is deeply woven into India’s nutrition framework, serving as an essential source of protein and micronutrients for millions. Yet, this scale comes with mounting challenges—ranging from climate vulnerability and methane emissions to energy-intensive processing and distribution systems. Against this backdrop, the push for sustainability is not just desirable but indispensable.
In this exclusive conversation with Mr. Ravin Saluja, Director of Sterling Agro Industries Ltd. (Nova Dairy), sustainability emerges not as a peripheral commitment but as the backbone of the company’s long-term vision. From integrating renewable energy into manufacturing to pioneering climate-smart farming practices, the dialogue underscores how Nova is redefining growth by aligning profitability with ecological responsibility. The interview highlights a central idea: that the future of dairy lies in operational efficiency, farmer empowerment, and transparent climate action, making resilience and sustainability inseparable from business success.
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Q. Sterling Agro has embedded sustainability into its operations beyond CSR obligations. How does integrating environmental responsibility into the core business strategy influence both brand value and long-term profitability?
A. At Sterling Agro Industries (Nova Dairy), sustainability is not treated as a side activity but built into the company’s DNA. By integrating renewable energy, climate-smart farming, and low-carbon operations into its core strategy, Nova strengthens both its financial resilience and brand value. For example, the 1.5 MW solar plant installed on the ground inside the Malanpur factory premises generates ~2.09 million kWh annually, avoiding around 2,789 tonnes of CO₂ each year while cutting energy bills by more than 60%. Such cost savings directly enhance margins. Meanwhile, consumers increasingly demand transparency and ethical practices, making Nova’s approach a brand differentiator. This dual advantage, operational efficiency and consumer trust, ensures profitability and future readiness in a carbon-conscious marketplace.
Q. As one of India’s leading dairy players, how do you balance the dual goals of expanding production and minimizing the ecological footprint of your operations?
A. Balancing growth with responsibility is central to Nova Dairy’s philosophy. Expansion is driven not by adding more animals, but by improving yield per animal through better nutrition, reproductive health, and housing conditions. Under the Sustainable Dairy Programme, participating farmers saw 8–10% productivity gains while cutting greenhouse gas emissions by up to 17% per litre of milk. On the energy side, Nova integrates large-scale solar and wind capacity to power processing and chilling operations, ensuring that production growth is underpinned by clean energy. This dual model—higher output with lower emissions—demonstrates that ecological footprint reduction and scaling production can reinforce, rather than compete with, one another.
Q. Renewable energy adoption is a cornerstone of your strategy. What were the key challenges in integrating large-scale wind and solar power into dairy manufacturing and milk collection operations, and how were they overcome?
A. Integrating renewable energy into a complex and geographically dispersed supply chain posed challenges around financing, infrastructure, and rural grid instability. Nova Dairy overcame these barriers through a phased, data-driven rollout supported by partnerships with advisory firms and technology providers. The 1.4 MW solar plant installed on the ground inside the Malanpur factory premises, executed on an OPEX model with SafEarth, ensured financial viability without upfront capital strain. At rural chilling centres, customized solar thermal hot-water systems were deployed to replace diesel and electricity for sanitization needs. By aligning sustainability with measurable ROI, Nova proved that clean energy adoption can be both commercially viable and operationally practical across manufacturing hubs and village-level infrastructure.
Q. With 88.3 MWH of wind and 35.0 MWH of solar power capacity installed, could you share the percentage of Sterling’s total operational energy demand currently met through renewable sources?
A. Sterling Agro (Nova Dairy) has built a robust renewable portfolio of 123.3 MWh, with 88.3 MWh from wind and 35.0 MWh from solar. The solar and wind are not supplying directly to our factories, but to the national grid. At the Malanpur manufacturing unit, for example, the solar plant installed on the ground inside the factory premises alone offsets over 2.8 kilotonnes of CO₂ annually, covering a majority of daily energy requirements. This level of renewable integration not only drives carbon avoidance but also provides energy self-sufficiency, insulating operations from grid volatility and fossil fuel price fluctuations, thereby strengthening both sustainability and business resilience.
Q. The solar water heating systems at milk chilling centers seem to have significant cost and emission benefits. How have these interventions impacted operating expenses and carbon footprint metrics over time?
A. The deployment of solar thermal water heating systems at rural chilling centres has transformed operational efficiency. Traditionally, heating water for sanitization relied on costly diesel burners or grid electricity. By replacing these with solar units, Nova has reduced heating-related costs by about 25%, improving long-term operating margins. Beyond cost savings, the intervention has significantly lowered the carbon footprint per litre of cooled milk, as fossil-based thermal energy has been displaced with clean alternatives. Additionally, solar heating ensures uninterrupted operations in regions prone to power outages, improving both hygiene standards and reliability. Over time, these systems have proven to be replicable, scalable solutions for rural dairy infrastructure across India.
Q. Your Sustainable Dairy Programme with Nestlé and Unilever engages small farms at the grassroots. What have been the most transformative farm-level changes observed since the programme’s inception?
A. The Sustainable Dairy Programme (SDP), piloted in Fatehabad and Morena, has been a game-changer for smallholder farmers. Key interventions include feed optimization, open housing for cattle, biodigester installation, and AI-assisted breeding management. The results speak volumes: greenhouse gas emissions per litre of milk fell by 15–18%, while milk productivity rose by 8–10% per animal. Farmers also reported healthier animals, lower veterinary costs, and improved resource efficiency. These combined changes meant higher incomes with lower environmental impact. Perhaps most importantly, the programme demonstrated that climate-smart practices are not burdensome but economically beneficial, ensuring farmer buy-in and setting a replicable model for sustainable dairy across India.
Q. Methane capture through biodigesters addresses a major source of dairy-related emissions. Could you share measurable results—such as methane reduction figures or renewable energy generated—since these biodigesters were deployed?
A. Biodigesters at the farm level have delivered tangible environmental and social benefits. By converting manure into biogas, they directly reduce methane emissions, a greenhouse gas many times more potent than CO₂. On average, each biodigester can offset up to 3.5 tonnes of CO₂ equivalent annually, depending on herd size and usage. The captured biogas provides farmers with clean cooking fuel, displacing firewood and LPG, while the leftover slurry acts as a nutrient-rich organic fertilizer, cutting dependence on chemical inputs. This closed-loop system has improved farm-level energy access, reduced household energy costs, and contributed to soil health. Together, these benefits highlight biodigesters as scalable, low-cost climate solutions.
Q. Feed optimization and genetic improvements are long-term strategies. How do you measure their success in terms of both productivity gains and per-litre emission reductions?
A. Nova measures the success of feed and genetic improvement strategies using Life Cycle Assessment (LCA) modelling and the Cool Farm Tool. The focus is on emissions intensity: reducing the greenhouse gases emitted per litre of milk produced. Genetic improvements enhance reproductive efficiency, while optimized feed formulations improve digestion and reduce enteric methane emissions. Field data from pilot farms show 8–10% gains in milk yield per animal, translating into fewer resources required per litre of milk. This not only improves farm incomes but also lowers the carbon footprint per unit of nutrition delivered. Over time, these strategies create compounding benefits, balancing productivity growth with emission reductions.
Q. The Life Cycle Assessment using the Cool Farm Tool suggests dairy has a lower carbon footprint per nutrient density compared to other foods. How do you see this data influencing consumer perceptions of dairy’s role in a sustainable diet?
A. The Life Cycle Assessment (LCA) conducted with the Cool Farm Tool highlights a compelling fact: dairy, when produced under climate-smart systems, offers a lower carbon footprint per unit of nutrient density compared to many other foods. This means that dairy not only provides high-value protein and essential micronutrients but does so with relatively lower emissions intensity. For consumers increasingly concerned about the climate impact of their diets, this data reinforces the idea that responsibly produced dairy is a sustainable choice. By communicating these results transparently, Nova can shift perceptions, positioning dairy not as part of the problem but as a climate-aligned solution within balanced diets.
Q. Looking ahead, what innovations—technological or process-based—are you prioritizing to make Sterling’s dairy operations even more climate-resilient and resource-efficient over the next decade?
A. Looking to the future, Nova Dairy’s sustainability roadmap prioritizes both technological and process innovations. Key focus areas include scaling biogas adoption across 100+ farm clusters, deploying solar microgrids and wind–solar hybrid systems at rural hubs, and leveraging IoT-driven feed monitoring to optimize inputs and reduce waste. On the agricultural side, the company is piloting regenerative fodder cultivation to improve soil carbon sequestration and biodiversity. Equally important is Nova’s commitment to third-party-verified annual emissions disclosures, enhancing transparency and accountability. Together, these initiatives aim to make dairy operations more resilient to climate shocks while improving farmer livelihoods, securing supply chains, and supporting India’s broader climate goals.
