New Delhi: ITC is strengthening its presence in the fresh dairy market in Bihar, West Bengal and Jharkhand, with the company placing greater emphasis on branded milk and value-added dairy products under its Aashirvaad portfolio.
The diversified FMCG company entered the fresh dairy business in 2018 with Aashirvaad milk in Bihar and subsequently expanded into West Bengal and Jharkhand. Its portfolio in the region now includes fresh milk, curd, paneer, lassi and Mishti Doi.
Eastern India remains key growth market
Hemant Malik, Chief Executive Officer, Foods Division and Executive Director, ITC, said Eastern India would remain a key market for the company’s dairy expansion, citing what he described as significant scope for growth.
“East is one of the most promising growth markets for the dairy category and will be central to our growth strategy in the coming years,” Malik told PTI.
The company is tailoring its dairy portfolio to regional consumption patterns and preferences while expanding products positioned around quality and consistency.
Bihar offers scope for shift from loose to branded dairy
According to Malik, more than 80% of consumers in Bihar purchase loose milk, creating an opportunity for branded dairy products to gain a larger share of household consumption.
ITC has also expanded its pouch curd offerings in the state. Malik said the company sees potential for a transition towards branded curd, similar to the shift observed in some other parts of the country.
The company’s regional portfolio is designed to accommodate local preferences while expanding consumption of packaged and value-added dairy products.
Value-added dairy at the centre of expansion
ITC said its dairy business is among its fastest-growing categories, recording high double-digit growth.
Alongside fresh milk, the company is focusing on products such as curd, paneer, lassi and Mishti Doi. It is also evaluating new dessert formats, including options positioned around evolving consumer preferences for healthier products.
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The company’s latest annual report said the Aashirvaad Svasti fresh dairy portfolio recorded strong growth during FY26, supported by the performance of its premium Select milk variant and value-added categories.
Manufacturing footprint spans three states
ITC currently operates dairy manufacturing facilities at Munger, Patna, Muzaffarpur and Gaya in Bihar; Ranchi in Jharkhand; and Howrah and Bardhaman in West Bengal.
The company is continuing to expand its distribution network across the three states to increase market penetration.
Project Gomukh links dairy expansion with farmer network
ITC’s dairy expansion is also supported by its farmer procurement network under Project Gomukh.
The company said the project works with more than 40,000 dairy farmers and focuses on improving milk productivity and quality while supporting farmer incomes.
During FY26, ITC said it supported around 33,300 dairy farmers across more than 560 villages in Bihar, West Bengal and Jharkhand through initiatives including veterinary services, cattle-feed distribution, deworming and mastitis control.
Aashirvaad portfolio expands beyond staples
The dairy strategy forms part of ITC’s broader effort to expand Aashirvaad beyond its traditional wheat-flour positioning into staples, spices, fresh foods and frozen products.
The company has set an ambition to increase consumer spending on the Aashirvaad portfolio to more than ₹20,000 crore over the next five years.
For the dairy business, the focus in Eastern India is therefore increasingly centred on combining regional product localisation, branded dairy adoption, value-added products and farmer-linked procurement as ITC seeks to deepen its presence in the region.
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