Under OPRATION FLOOD - I, a Feeder Balancing Dairy was established at Vadlamudi village of Guntur District by the NDDB in the year 1977. The milk producers of Krishna, Guntur and West Godavari districts generously contributed and donated one day milk value for the purchase of 34.46 acres of land to construct a dairy plant, Subsequently. 53 acres of land was purchased to construct staff quarters and technical inputs program facilities. The Guntur District Milk Producers Co-operative union Ltd., was registered under the APCS ACT-1964 on 23-02-1977. The Government of AP has handed over the feeder Balancing Dairy to the Union Board along with two chilling centers located at Narasaraopet and Gurajala on 01-08-1978. There were 91 registered milk societies at that time. The Government has also contributed Rs. 81 Lakh to the union as share Capital.
The union has been converted to the A.P MACS Act 1995 with valuable support from NDDB on 01-02-1997 to facilitate more democracy and freedom to the affiliated societies as well as in the governing of the union. As a requisite for conversion, the union had repaid the share capital of Rs. 81 Lakhs to the Government of A.P by obtaining interest free loan from NDDB.Further, Sangam Dairy was incorporated as "Sangam Milk Producer Company Limited" under Part IX-A of the Companies Act 1956 on 18-06-2013.
The name "Sangam Dairy" is due to the presence of "Sangameswara" temple at Sangam Jagarlamudi village near the vicinity of Vadlamudi Village. The Dairy is located on the Guntur - Tenali state highway at a distance of about 15km from Guntur and 10km from Tenali giving good architectural view to attracting visitors. It is one of the most familiar visiots' spots in Guntur District.