The Sakhti Group looking to tap into growing demand for dairy in India

The Sakhti Group looking to tap into growing demand for dairy in India

India's ABT Foods is looking to boost its dairy production, to serve states in the south of the country.

The company, part of the Indian conglomerate The Sakhti Group, plans to invest INR1.8bn (US$27m) over the next three years.

C. P. Charles, senior president of operations within ABT Foods' dairy division, told just-food: "We want to increase our production from 600,000 litres [of milk] per day to 1,500,000 litres by 2025. We will expand the capacity of our existing Pollachi plant near Coimbatore in Tamil Nadu to 1,000,000 litres per day and also set up a greenfield plant at Krishnagiri, nearer to Bangalore."

The group markets liquid milk brand Sakthi milk in Tamil Nadu and Kerala, as well as selling value-added products such as ghee and skimmed milk across India. The group wants to service other southern states such as Karnataka and Andhra Pradesh with the increased capacity.

Charles said a new centralised unit, set up with INR300m investment at its existing plant in Pollachi, will make ice cream, cheese and yogurt. The company plans to devote 35% of its milk to value-added products but demand for liquid milk demand is also rising. The proportion of ABT Foods' dairy production put to liquid milk could rise to 70%. Charles would not rule out making acquisitions when ABT Foods' sees growth through its investment plan.