Amul to invest Rs. 5,000 cr to set up 10 milk processing plants.

Dairy products giant Amul is planning to invest Rs. 5,000 crore to set up around 10 milk processing plants in the next fiscal in order to achieve the revenue target of Rs. 50,000 crore by 2020.

'We will invest Rs. 5,000 crore to set up around 10 milk processing plants in the next financial year, including two plants in Delhi, three in Uttar Pradesh, one each in Kolkata and Maharashtra and the rest in Gujarat to achieve our revenue target of Rs. 50,000 crore by 2020,' Amul Managing Director R S Sodhi said at the India Food Forum 2015 here.

Further, Sodhi said, Amul is on track to achieving annual revenues of Rs. 20,000 crore this year.

Even as increasing milk productivity, improving cattle breeds and feeding practices in the country represent challenges for Amul, still the next generation of rural farmers should remain in the animal husbandry business, Sodhi said.

'It is possible to earn Rs. 40,000 per month with 30-40 cows and buffaloes at project cost of Rs. 21 lakh including a loan component of Rs. 15 lakh,' Sodhi said.

On new entrants in the dairy segment from the private sector and MNCs, Sodhi said, India's organised sector only constitutes 20 per cent of the total market size of Rs. 4 lakh crore for dairy products and there is space for everyone.


HBL