ITC’s Dairy Business to Focus on Expanding Milk Sourcing Base in West Bengal and Bihar

The dairy business of diversified conglomerate ITC Limited will focus on expanding its milk sourcing base in east India, specifically in Bihar and West Bengal.

The conglomerate, which entered the dairy business less than four years back, currently has over 20,000 farmers in Bihar and West Bengal supplying milk. It plans to add over another 5,000 farmers this year.

ITC has three milk processing plants – at Munger and Patna in Bihar and Howrah in West Bengal.

ITC Limited has launched lactose-free milk in pouches for the first time in West Bengal which will be sold at almost half the price of its nearest competitor which sells a similar product in Tetra Pak packaging.

Sanjay Singal, Chief Operating Officer – Dairy & Beverages, ITC Limited while addressing the media during the launch of lactose-free milk said that the dairy business is growing faster, though on a smaller base.

ITC Limited had already launched milk, curd, paneer, lassi and mishti doi (sweet curd) in the dairy business under the ‘Aashirvaad Svasti’ brand so far. It will focus on selling its fresh dairy products in West Bengal and Bihar for the next two years where it currently reaches to 42 markets and will expand the reach to a few more. The dairy business has garnered a market share of 8-10 percent in West Bengal.

According to Sanjay Singal, there is no national player in the organised dairy business, adding that the market for fresh dairy (milk) in West Bengal is around INR 4000 crore to INR 5000 crore.

The company sells packaged dairy beverages like milkshakes in North and South, and ghee across the country. Singal said ITC does not yet have the supply chain for chilled dairy products like butter and cheese and hence it is yet to decide on any launch.