Banaskantha is planning yet more dairies in India

Banaskantha is planning yet more dairies in India

India's Banaskantha District Cooperative Milk Producers' Union, a member of the Gujarat Cooperative Milk Marketing Federation that owns the popular Amul brand, is to set up two more dairy plants.

The new factories will be in Lucknow and Kanpur in the northern state of Uttar Pradesh.

Last week, Banaskantha announced it would build a plant in Faridabad, Haryana, near New Delhi

Parthi Bhatol, Banaskantha's chairman, told just-food both of the new Uttar Pradesh dairies would have a daily milk production capacity of 500,000 litres and would cost US$50m to build.

The sites will collect milk directly from farmers, bypassing traders, expanding an established in-house network.

Bhatol said: "We already procure 200,000 litres milk every day from 1,000 collection centres in villages around Kanpur and sell it under [the] Amul brand in Lucknow, Kanpur, Varanasi and Haridwar."

He said there was no opening date for these additional plants but they would be built after the Faridabad plant was opened in 2015. The co-op plans to manufacture packaged milk under the Amul brand at the sites.

The new dairies would benefit consumers as milk co-operatives have been poorly run in the state, Bhatol added.