Godrej Agrovet Limited has signed a non-binding memorandum of understanding (MoU) with the Andhra Pradesh government, committing to an investment of approximately ₹ 70 crore for enhancing dairy processing and value-added product capacity in the state. The MoU, signed in Visakhapatnam in the presence of Chief Minister N. Chandrababu Naidu, Sunil Kataria (MD & CEO of Godrej Agrovet) and Rakesh Swami (Group President Corporate Affairs, Godrej Industries Group), signals the agribusiness major’s strategic move to deepen its dairy footprint in southern India.
Under the agreement, Godrej Agrovet’s wholly-owned dairy subsidiary, Creamline Dairy Products Limited (which markets under the “Godrej Jersey” brand) will execute the expansion in three phases, aimed at scaling up dairy processing capabilities and launching new value-added dairy products in Andhra Pradesh. In parallel, the company will establish five “Samadhan Centres”—one-stop support hubs for oil-palm farmers in the state, tying in its broader agribusiness strategy of integrating feed/feed-input and value-chain services for farmers.
Chief Minister Naidu emphasised that strengthening the agri-food-processing sector is critical for farmer livelihoods, and that the partnership with Godrej Agrovet would not only boost dairy infrastructure but also generate sustainable employment and economic growth in rural Andhra Pradesh. Sunil Kataria, representing Godrej Agrovet, underlined the company’s commitment to farmer-empowerment, nutrition access and innovation in food processing—signalling that dairy is emerging as a growth vector beyond the company’s entrenched animal-feed business.
For the Indian dairy sector, this MoU carries several important implications:
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It demonstrates that large agribusiness companies are increasingly investing in value-added dairy (VAD) rather than just milk procurement or feed business, reflecting the premiumisation of dairy.
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The establishment of farmer-service centres (Samadhan Centres) signals that upstream support (for feed, oil-palm integration, farm services) is becoming integral to dairy expansion strategies.
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From a policy-perspective, Andhra Pradesh’s investor-friendly posture helps position the state as a key hub for dairy processing capacity—complementing traditional dairy states such as Gujarat, Karnataka and Tamil Nadu.
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For labs, testing services and the dairy-equipment ecosystem, such large investments in processing capacity and VAD signals rising demand not just for volume milk but for quality-assurance, product-innovation and end-consumer branding.
Source : DAirynews7x7 Nov 15th 2025