ITC to make a big splash in milk.

Tobacco-to-hotels conglomerate, ITC, has finalised a blueprint for its own brand of 'white revolution'. The company, which plans to become a pan-Indian dairy entity, is going to set up plants across six states - Bihar (the first plant will be commissioned in Munger this year), Uttar Pradesh (possibly in Saharanpur), Punjab (in Kapurthala), Maharashtra, Andhra Pradesh and Telangana).

Of the dairy products the company plans to launch by the end of this year, the first is expected to be ghee, which could be followed by milk powder. Though a spokesperson for ITC said specific details could not be given out for competitive reasons, he confirmed the states identified for the pan-Indian rollout of dairy operations. According to sources, milk powder might initially be used in-house for the company's foods business.

The company has been working on its dairy plan for a couple of years, albeit quietly. Through its Integrated Rural Development programme, ITC has access to at least one million breedable cattle, from which it could source milk, across seven states. It has set up 261 cattle development centres in states like Karnataka, Odisha and Madhya Pradesh, and managed to increase daily yields nearly four times to up to 11 litres by converting low-yield assets into a profitable livelihood opportunity. The company has also leveraged its relationship with the farmers supplying it other commodities like wheat (sold under the Aashirvaad brand name). Its linkages through 'e-choupal', the company's initiative to connect with rural farmers via the internet for procurement of agricultural produce, would also come handy.

ITC's mega move to dairy is part of its strategy to reduce its dependence on tobacco.


BS