Amul eyes higher cheese output with new plant

Amul eyes higher cheese output with new plant

India’s largest co-operative dairy, Gujarat Co-operative Milk Marketing Federation, will be setting up a greenfield cheese plant in Palanpur, Gujarat, for the production of its Amul brand.

The investment in the plant will total US$92m and, after completion, Amul will triple its cheese output capacity. Through the project, the company aims to increase its market share of 65% of cheese production in the India.

The new plant will produce will initially produce mozzarella and processed cheddar cheese. The company is targeting hotels, cafes and restaurants with these products, which are dependent on local brands for cheese.

Amul butter holds 90% share in the Indian market whereas its fresh milk share is 40-45% of sales.

The co-operative turnover recorded a growth of 14% in the 12 months to the end of March, with revenue at $3.16bn, compared to $2.76bn during the same period last fiscal.