India-based Kaira District Cooperative Milk Producers Union Limited (KDCMPUL), popularly known as Amul Dairy, plans to set up a dairy plant in Kolkata, West Bengal, with an investment of about INR1bn ($18.81m).
Amul Dairy managing director Rahul Kumar was quoted by the Times of India as saying that there is a huge potential in developing the cooperative base in West Bengal where there was no such model earlier to help the farmers.
"Until we strengthen our processing capacity, we cannot increase milk collection from the region. Hence, we have decided to set up our own processing plant in Kolkata," Kumar added.
By setting up its own processing plant, Amul Dairy is also seeking to gain control over the quality of operations.
Currently, Amul Dairy collects 200,000 liters per day of milk from 60 milk societies in Vardhaman district in West Bengal.
Currently, Brand Amul, which is marketed by Gujarat Co-operative Milk Marketing Federation (GCMMF) - the apex marketing body of all the district dairy unions of Gujarat state, is the leading market leader in Kolkata.
