Indian dairy major Amul is planning to build a new milk powder facility in Sri Lanka.

The new plant will have a production capacity of 200,000 litres per day, according to the official daily news. It is not yet clear where it will be built.

Amul Milk Cooperative chairman V. Kurien met the Sri Lankan agriculture and livestock minister Anura Kumara Dissanayake in Gujurat last week, and it was following this meeting that Amul committed to the new milk powder plant.

Amul is reported to have committed to handing over ownership of the factory to the Sri Lankan government after one year. The government will be able to control the rise in milk powder prices to the benefit of consumers, Kurien is reported to have said.