Indian conglomerate ITC plans to enter the country's fast-growing domestic dairy business by building a dairy in the eastern state of Bihar.

ITC chairman Y. C. Deveshwar said the first products at the site in Munger would "most likely" be skimmed milk powder and ghee, an Indian butter product. 

"Later on, we will either go for long-life milk or milk that requires refrigeration," Deveshwar said. Cheese, butter and milk chocolate may follow.

Deveshwar said he sees “great opportunity” to add value to milk, to create derivatives and products, and to brand them. ITC currently runs a milk enhancement programme with 500,000 cattle in Munger.

The conglomerate has diversified into fast moving consumer goods and is reportedly looking to triple its turnover from FMCG, excluding cigarettes from INR50bn (US$ 1.1 bn) to INR 150bn in the next five years.

"We will start it (the dairy business) as soon as possible," Deveshwar said.