The Gujarat Cooperative Milk Marketing Federation (GCMMF), better known as the parent of the Amul brand, has announced an ambitious plan to invest ₹10,000 crore over the next two to three years. The capital will be channelled into building 10–12 new plants covering dairy, ice cream, and food product lines to bolster processing capacities and support its target of a ₹1 lakh crore turnover.
This move is GCMMF’s second major capex tranche, following an earlier deployment of ₹11,000 crore since 2023, which is reportedly nearly fully utilized. The federation currently operates around 118 plants nationwide and processes over 440 lakh litres of milk per day. It commands a 50–70% share in pouched milk and dairy products across India.
With the recent rationalization of GST rates across dairy and food products, GCMMF expects increased demand for processed items. MD Jayen Mehta has hinted that revised prices will begin reflecting in stores within upcoming weeks, especially across 700+ product SKUs including ghee, butter, UHT milk, paneer, and frozen snacks.
As of FY25, GCMMF’s revenue stood at ₹90,000 crore, with the cooperative planning to scale operations further through expanded infrastructure and deeper penetration in both rural and urban markets.
Industry Insights
GCMMF’s massive planned investment underscores how the organized dairy sector is doubling down on processing, value addition, and capacity expansion. By building new plants, the federation not only addresses capacity constraints but also enhances product diversification (ice cream, processed foods) to capture higher margins and reduce reliance solely on fluid milk sales.
The timing aligns with favorable policy tailwinds—GST rationalization will ease cost burdens and potentially stimulate supply and demand in processed dairy segments. However, to fully reap benefits, GCMMF must ensure supply chain readiness (milk procurement, cold chain, quality control) and avoid bottlenecks in raw milk collection. Also, such capital-intensive expansion carries execution risk; delays, cost overruns, or demand mismatches could challenge returns. But given GCMMF’s scale and cooperative structure, this bold investment positions it to stay ahead in India’s rapidly evolving dairy landscape.
Source : Dairynews7x7 Sep 24th 2025 The Financial Express