The Khadgi family, the owner of HDP, has been involved in the 'milk business' for generations. The family used to keep several cows and buffaloes and sell the fresh milk to the aristocrats living in their vicinity. In the beginning of 1981, Mr. Sunder Khadgi, the present Managing Director of the company, decided to modernize the traditional business and initiated registration of HDP with the Department of Industry, at the same time he also approached Danish Turnkey Dairies (DTD) for the supply of the equipment and technical support. Two years later, the plant was erected and semi-hard cheese was produced under the Danish supervision. HDP is the second modern dairy in Nepal and the first one in the private sector. HDP started processing and supplying liquid milk to consumers in Kathmandu Valley since late 1983. Initially the plant capacity was 1000 liters per hour (lph), which was upgraded to 2000 lph in 1988. The 'raw material' used was both imported power milk and locally available fresh milk collected from the farmers in and around Kathmandu. In 1995, HDP carried out major changes both in its capacity and its policy regarding the procurement of 'raw materials'. The total production capacity of the plant was increased from 2000 lph to 7500 lph. The current milk handling and storage capacity of HDP is 100,000 liters per day. As the quality of product depends on the quality of raw material, fresh milk, HDP increased collection of fresh milk from farmer-managed cooperatives in 1995. Eight milk collecting/chilling centers were set up in Chitwan, Nawalparasi, Rupandehi and Kapilbastu districts. This has benefited not only HDP and the consumers in urban areas but also poor farmers from rural areas, hundreds of families depend entirely on milk production for their living. More than 4000 farmers are selling milk to HDP every day and HDP has been able to plough back NPR 200 million to the hinterland from Kathmandu Valley every year. Himalaya Dairy has always given priority to modernizing the dairy industry in Nepal by not only importing high quality equipment but also by increasing the quality of the locally produced fresh milk. In this regard, HDP has been supporting the farmers in Rupandehi, Kapilbastu, Nawalparasi and Chitwan districts by providing them technical and managerial services. Besides, keeping the profit of the farmer in mind, HDP has resisted from introducing milk holidays like other dairy industries of Nepal. HDP is also encouraging farmers towards animal husbandry by giving more price to their products and disbursing the dues on time. It is the policy of HDP to gradually transfer the responsibility of milk collection, chilling and transportation to the farmers themselves. In 1990, HDP started producing fruit juice and juice drinks through its subsidiary concern. The juice drink marketed under ‘Frutop’ brand name was hot filled in gable top cartoon. The hot filling technology was introduced for the first time in South Asia through Frutop and Trekker’s Choice brands. In 1996, Himalaya Dairy’s subsidiary produced fruit juice for Dabur India Limited under Real brand, primarily for the Indian market. Later, the plant was handed over to Dabur Nepal Private Limited.