TAD NewsDesk, Gujarat: Dairy major Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) marketer of Amul products have announced a fresh line of investment to increase the productivity in the places of stronghold, Gujarat, Andhra Pradesh, Kolkata.
The Federation has decided to invest around 1200 crores towards milk processing and value addition capacities in the next two years.
GCMMF has decided to divide the investment in the following manner:
- ₹250 crore for processing facility in Kolkata with a capacity of 10 lakh litres per day (LLPD)
- ₹450-500 crore investments for milk processing facility in Rajkot in Saurashtra
- ₹600 crore in North Gujarat
RS Sodhi, MD, GCMMF said that the demand in the target areas is in rise and hence the new investment will aim to provide for a better supply with enhanced productivity.
Mr RS Sodhi said,
“Even during the Covid-19 lockdown, we have witnessed growth in dairy products consumption. However, there is an adverse impact on HoReCa segment, where the demand is down by about 30 per cent. But overall consumer demand in most markets has recovered.”
Amul had earlier announced its plans to invest about approx ₹1,500 crore over the next two years.
Valamji Humbal, Vice-Chairman of GCMMF and Chairman of Sarhad Dairy, said,
“The Saurashtra region produces milk to the tune of about 35 lakh litres per day, of which about 10-12 LLPD or so gets processed at the local processing centres, whereas a large quantity of about 20-25 LLPD has to be transported to Gandhinagar’s Mother Dairy for further processing. This involves transport costs as well as wastage, additionally due to 12-hour travel, the milk quality also gets impacted. This will mean improved margins for the dairy farmers.”
Amul is also aiming at increasing its horizon to more places of the country including the North Eastern region, Kolkata and Andhra Pradesh. It’s aiming at increasing the scope of production to more areas of the country.
Source: Business Line