October 9, 2020


India's ITC to strengthen dairy business vertical in eastern region


Diversified conglomerate ITC will focus on the eastern regional markets of the country for its dairy business vertical set up in 2018, Indian media reported this week.

The company is currently offering its dairy products in the two eastern markets of West Bengal and Bihar. Its dairy range includes fresh milk and the value-added segment including paneer, curd, ghee and milk shakes.

"We are to focus on eastern markets of the country for our new dairy business. However, plans are there to expand the range and footprint also," says Sanjay Singhal, COO of dairy and beverages business of ITC.

New distribution channels that include direct-to-home delivery of milk have been set up. Doorstep delivery is made in at least 20-30% of the households, and the company's e-store has been ramped up.

Procurement of fresh milk and difficulty in its transportation beyond 200 kilometres is a challenge which is why the company has taken a regional-first approach.

Singal told BusinessLine that in the fresh milk category ITC enjoys an 8-10% market share, while in the value-added categories market share will be higher.