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Amul to invest $786.8m to ramp up capacity in India

FBR Staff Writer Published 06 January 2015

India-based Amul is planning to invest around INR50bn ($786.8m) in a move to ramp up its production capabilities.


The proposed investment is anticipated to increase the company's capabilities by more than a third over the next three years, reports Economic Times Retail.

From the stable of Gujarat Cooperative Milk Marketing Federation (GCMMF), Amul's expansion plans comes in response to the increasing consumer demand for its products in the local and global markets.

GCMMF will establish around nine plants across the country, while expanding existing facilities in and around Gujarat.

It currently operates over 50 dairy plants and has a capacity to process around 230 lakh litres of milk every day.

The company is also launching pouch milk in Hyderabad in the state of Telangana.

GCMMF managing director R.S. Sodhi said: "We have identified Hyderabad as an opportune market for our fresh product offerings. We would be selling pouch milk and packed dahi to the consumers who are brand conscious and are willing to associate themselves with the strong brand name of Amul.

"We would be offering our best quality fresh products at affordable prices to consumers. Amul is looking to garner a 20 per cent share of the Hyderabad milk market."

Image: GCMMF has a capacity to process around 230 lakh liters every day. Photo: courtesy of Naypong / freedigitalphotos.net.