After expansion in northern states such as Uttar Pradesh, Punjab and Haryana, the country’s largest diary products processor, Gujarat Cooperative Milk Marketing Federation (GCMMF), which sells products under the Amul brand, is set to enter eastern India and Kerala in a couple of years. “We will be entering Jharkhand, Bihar, Odisha and Assam over the next couple of years, as they are a huge untapped market for milk and dairy products,” RS Sodhi, MD of GCMMF, told FE.
Sodhi said though these states have their own dairy cooperatives, a majority of the farmers are yet to be covered under the milk procurement system. “Our experience in northern states shows that wherever we have entered, the local cooperatives have become efficient,” he said.
“At present, we are investing around R600-800 crore annually. We aim to invest about R3,000 crore annually by 2020,” Sodhi noted, adding, “Our turnover has been growing over 20% since the past six years due to higher milk procurement, continuous expansion by adding new markets, launching new products and adding new milk processing capacities across India.”