Business Standard: January 30, 2015
Ahmedabad: The country's largest dairy player Gujarat Cooperative Milk Marketing Federation (GCMMF), which is eyeing a Rs 22,000 crore turnover in FY15, plans to invest close to Rs 5,000 crore to set up ten new processing plants as well as expand the current capacity to touch 32 million litres per day (lpd) capacity by 2020.
As RS Sodhi, managing director, GCMMF, said, "We plan to touch a Rs 50,000 crore turnover by 2020. We are investing around Rs 5,000 crore in setting up ten new plants as well as expand capacity at our existing plants. Our current processing capacity is around 23 million lpd, we aim to take it up to 32 million lpd by 2020."
Of the new plants planned, that would come up within the next two to three years, two would be in Delhi, three in Uttar Pradesh, one each in Kolkata and Maharashtra and the rest in Gujarat. GCMMF at present has over 50 processing plants across the country.
It is currently procuring 19 million lpd for processing paying an average price of Rs 550-580 per kg fat. With the new plants coming onstream, procurement is expected to rise to 25 million lpd by 2020, Sodhi said. India’s organised sector only constitutes 20 per cent of the Rs 4 lakh crore market size for dairy products in the country.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.