April 5, 2012

GCMMF expands in India, eyes US

Indian dairy cooperative Gujarat Cooperative Milk Marketing Federation (GCMMF) plans to invest INR30 billion (US$5885.5 million) over the next five years to establish nine facilities and expand existing units across India as a part of its growth strategy.

The investment is expected to boost the cooperative's milk processing capacity from 14.5 million litres a day to 20 million litres. GCMMF expects to achieve revenues of INR150 billion (US$2.94 billion) during 2012-2013 and aims to achieve a turnover of INR300 billion (US$5.88 billion) by 2020.

GCMMF, which markets the Amul brand of milk and dairy products, will set up and one plant in Mumbai in the next 2-3 months, with a capacity of 1 million litres per day; two plants in Delhi with a capacity of 4 million litres per day; four plants in Saurasthra region in Gujarat, each with a capacity of 0.2 million litres per day.

Currently, GCMMF operates 52 milk processing plants in India, of which nine are operated on a hired basis. The cooperative is also planning to enter into the US market by setting up a plant there.