Amul will invest ₹10,000 crore to expand production capacity across India, including a large facility in Howrah, West Bengal. This investment aims to double milk procurement in the state to 20 lakh liters daily. Investors may track how this expansion impacts the cooperative’s supply chain efficiency and product reach in eastern India.
Detailed Coverage
The Gujarat Cooperative Milk Marketing Federation, which operates under the Amul brand, has announced a capital expenditure plan of ₹10,000 crore to be deployed over the next two to three years. This move follows the recent completion of a previous ₹11,000 crore expansion cycle. The investment is part of a strategic effort to strengthen manufacturing capabilities and reach in key regions, with West Bengal emerging as a major focus area for eastern India.
The Howrah Dairy Project
A centerpiece of this expansion is the Amul Bengal Dairy Project located in the Howrah Food Park. The facility is expected to be completed within approximately two years and will feature a daily milk processing capacity of 30 lakh liters. The plant is designed to handle a diverse product mix, including 10 lakh liters of packaged milk, two lakh liters of UHT milk, and one lakh liters of ice cream. It will also produce 20 metric tonnes of paneer along with ghee and various sweets.
Amul intends to scale its local operations significantly by increasing its farmer network from the current 900 villages to over 3,000 villages across West Bengal. This will support the target of doubling milk procurement to 20 lakh liters per day. Fresh dairy items produced at the site will primarily serve local demand in West Bengal, while products with longer shelf lives will be distributed across the eastern region of the country.
National Footprint and Financial Growth
Beyond the developments in West Bengal, the cooperative is executing a broader national expansion strategy. This includes a major dairy unit currently under development in Baghpat, Uttar Pradesh, as well as new projects in Bihar and Assam. A significant facility is also planned for Hyderabad. This growth follows a period of financial success for the brand; the total turnover of the Amul brand crossed the ₹1 lakh crore mark in the financial year 2026. During the same period, the cooperative’s own sales turnover grew by 11.4% to reach ₹73,450 crore.
As the cooperative scales its infrastructure, the key monitorable for the industry will be its ability to maintain operational efficiency while managing higher volumes across multiple states. The success of these projects will depend on effective demand-supply coordination and the ability to maintain consistent procurement levels from the expanding farmer base. The timeline for commissioning the Howrah plant and the impact of these new facilities on regional market share will be important factors to observe in the coming quarters.