The deputy chief minister of India’s Punjab, Sukhbir Singh Badal, has approved the setting up of four new milk processing plants in the northerly and industrialised state.
The investment, of INR2.5bn (US$44m), would expand the state’s cooperative milk federation Milkfed, with the aim of promoting its brand Verka.
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A Punjab government spokesman told just-food the exact location and capacity of the new plants had yet to be agreed.
Badal however, said the expansion plan would “build an efficient vertically integrated production chain, setting up organised dairy farms, improving the procurement of raw milk, raising standards in the collection and chilling chain”, as well as introducing modern milk processing facilities. He said the cooperative would launch value-added milk products with a revamped marketing network to promote the Verka brand.
Punjab state ranks second in milk production across India with a daily milk production of 26.2m litres. Its government values the state’s annual milk market at INR330bn. Of this, the organised sector accounts for 30%, with Milkfed’s share being 17%.
Badal said he wanted to increase Milkfed’s share to 30%. He has asked Milkfed to reorient its product portfolio to attract younger consumers and introduce low calorie products for health conscious market segments.
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