GCMMF to invest 1200 crore to ramp up capacity

11 January 2021

Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), which markets the Amul brand of food products, has lined up fresh investments to ramp up capacities in major markets including Kolkata and Andhra Pradesh besides its strong-hold Gujarat. 

The Federation is set to invest over Rs 1,200 crore towards additional milk processing and value-addition capacities in these regions in the next two years.

Of the said investments, GCMMF will invest about Rs 250 crore for a processing facility in Kolkata with a capacity of 10 lakh litres per day (LLPD), while it has planned about Rs 450-500 crore investments for a milk processing facility in Rajkot in Saurashtra. In North Gujarat, it is setting up additional dairy products’ processing capacities with an investment of Rs 600 crore.

RS Sodhi, MD, GCMMF, said that new investments will come up in Rajkot and Banaskantha in Gujarat and Kolkata to augment additional milk processing capacities as the demand is growing for the packaged branded dairy products.

“Even during the Covid-19 lockdown, we have witnessed growth in dairy products consumption. However, there is an adverse impact on HoReCa segment, where the demand is down by about 30%. But overall consumer demand in most markets has recovered,” he said.

Amul had earlier announced its plans to invest about approx. Rs 1,500 crore over the next two years.

Valamji Humbal, Vice-Chairman of GCMMF and Chairman of Sarhad Dairy, said that capacity addition in Rajkot will be a big push for the region’s dairy farmers, who have to transport the milk to Gandhinagar for processing.