Thursday, October 5

Homegrown Amul Dairy Eyeing to Acquire a Manufacturing Plant in the US

India’s largest dairy firm Amul Dairy has been a dominant player in the country in this sector. The company is now moving forward to have its presence in the United States.

The Amul Dairy which is originally known as Kaira District Cooperative Milk Producers Union Limited (KDCMPUL)  is on the advanced stages to launch its own dairy in the US. This move will mark as the first one in terms of any plant outside India started by a home-grown co-operative dairy company.

According to the sources, Amul Dairy is eyeing to acquire a dairy plant in Wisconsin – the mid-western state of the US – to start its own operations. Wisconsin is among the top producers of cheese in the US, accounting for almost 27 % of total cheese production.

“We are looking at options to expand our US operations so that we can service the market there better. Presently, from Waterloo facility, we can at best service the eastern coast. The best option is to start our own operations there,” stated a top official.

At present, Amul Dairy’s team of eight board of directors is already in the US to look out for a dairy plant for the purpose of acquisition. The total sales of Amul in the US including dairy products that are locally manufactured there and those exported from India currently totals nearly Rs 60 crore.

“Thanks to the large presence of diaspora, dairy products like ghee and paneer has already become mainstream products like ghee and paneer has already become mainstream products in the US and there is huge potential. So, manufacturing such dairy products locally makes sense,” the official added.

The team in the US is still in the process of acquisition and once the directors come back, the company will be in a position to understand the method of going forward with the acquisition.