Dairy cooperative plans expansion across procurement, processing and distribution as it strengthens presence in southern markets
HYDERABAD: The Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets dairy products under the Amul brand, plans to invest more than ₹500 crore in Telangana and Andhra Pradesh over the next three years, as the cooperative expands its presence in southern India.
GCMMF Managing Director Dr Amit Vyas said the expansion would cover milk procurement, processing and distribution, with the cooperative seeking to strengthen its supply network in markets where its presence has historically been more limited.
New processing capacity planned in Telangana
In Telangana, the Sabarkantha District Cooperative Milk Producers’ Union is handling milk procurement and processing operations in Hyderabad, according to Vyas.
A new dairy plant is also under construction. The union is expected to manage the operation across the supply chain, from village-level milk collection to processing and distribution.
The expansion is aimed at creating a more integrated procurement and distribution network in the state.
Chittoor facility strengthens southern supply network
In Andhra Pradesh, Amul has established a fully automated dairy processing facility in Chittoor.
The plant’s location provides access to major southern markets, including Chennai and Bengaluru, while its product portfolio includes paneer, yoghurt, dahi and other dairy products.
According to Vyas, products manufactured at the facility are also supplied to markets in Tamil Nadu, Karnataka and Kerala.
Amul has additionally entered the ice-cream market in Kerala through a partnership with the state government.
Focus on digital milk procurement
The planned expansion is also being accompanied by greater digitalisation of Amul’s operations.
According to Vyas, farmers receive real-time information on milk quantity, fat content and the applicable price at the time of milk collection. Payments are transferred directly into farmers’ bank accounts at regular intervals, with the cooperative following a largely paperless operating system.
Also Read: Amul Dairy Crosses ₹15,114 Crore Turnover in FY 2025–26, Marks 80 Years of Cooperative Growth
Digital systems are also being used for tracking employees, plant operations and vendor payments.
Cooperative model at the centre
Vyas said Amul operates through a cooperative model in which farmers are the owners and profits are returned to them rather than distributed to external shareholders.
He also said the cooperative does not provide subsidies to farmers, but seeks to ensure competitive milk procurement prices.
Women currently account for around 30% of operations, while some cooperative units are entirely managed by women, according to Vyas.
Amul’s market position
Amul currently has a reported 90–95% share of India’s butter market and around 70% of the cheese market, according to the company’s management.
The expansion in Telangana and Andhra Pradesh comes as India’s dairy consumption continues to grow, supported by rising urbanisation, changing food preferences and increasing demand for value-added dairy products.
India currently accounts for roughly 24% of global milk production, and its share is projected to increase significantly over the coming decades.
Southern India emerges as a key growth market
The planned investment reflects the increasing strategic importance of southern India for large dairy companies.
Telangana and Andhra Pradesh offer access to growing urban consumption centres as well as established dairy-producing regions. Their proximity to major markets such as Hyderabad, Bengaluru and Chennai also provides logistical advantages for processed dairy products.
For Amul, expanding procurement and manufacturing capacity in the region could reduce dependence on long-distance movement of products from western India while enabling the cooperative to build stronger local supply chains.
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