Amul plans dairy production in US
06 Jun 2013
Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets its dairy products under the brand name 'Amul', will start manufacturing some of its products in the US by the year-end.
Kaira District Co-operative Milk Producers Union Limited (KDCMPU), a part of GCMMF, will start production of a few diary products through third party agreement with an existing manufacturing plant near New Jersy in the US.
KDCMPU is among the 13 milk producers unions that constitute the GCMMF.
"The production is expected to commence in next six to eight months, and thereafter the federation will undertake marketing of the dairy products range there," GCMMF managing director R S Sodhi said.
The dairy co-operative is expected to set up its own manufacturing facility in the US at a later stage.
GCMMF, which already exports dairy products to US worth around Rs35 crore, hopes to quadruple its US sales with the setting up of a production facility in its key market.
"With this arrangement in place, the federation expects sales to get a big push in the US. Initially we will begin manufacturing products like paneer and ghee etc there. Slowly other dairy product range would also be rolled out from there," Sodhi said.
"This initiative would help us in saving on duties and taxes levied on exports of dairy products from India," he said.
GCMMF reported a turnover of Rs13,750 crore in 2012-13, posting a growth of 18 per cent over the previous year's turnover of Rs11,668 crore.
