Banaskantha said demand for milk in and around New Delhi would jump

Banaskantha said demand for milk in and around New Delhi would jump

India's Banaskantha District Cooperative Milk Producers' Union, a member of the Gujarat Cooperative Milk Marketing Federation, which owns the popular Amul brand, is setting up a processing unit near New Delhi.

The company told just-food the new facility would meet the growing regional demand.

"We are building one million litres per day capacity unit in Faridabad (Haryana) and it will be ready by middle of 2015," Banaskantha chairman Parthi Bhatol said.

"The demand for our [liquid] milk in and around Delhi will increase from the present 650,000 litres-a-day to one million litres in next two years," Bhatol predicted. "We will also be setting up extensive milk procurement centres in the region."

The site, on which Banaskantha plans to spend US$48.2m, would be its first Banaskantha plant outside the state of Gujarat, 1,100 km away from the Indian capital, Bhatol explained.

Until now, Banaskantha milk has been transported from Gujarat and packed in rented facilities. The new unit will not only package liquid milk but produce a range of value-added dairy products, although the company insisted it has yet to decide which lines it will produce.