Britannia Industries plans to scale up sourcing milk across India after the dairy products line in its Ranjangaon plant in Maharashtra becomes operational.
The company has 25-30 milk centres in Maharashtra that collect up to 25,000 litres of milk daily. It is expanding to have hundreds of such centres around the Ranjangaon plant.
The milk collected will be used to support its value-added dairy products, like cheese, business, as the company has decided not to enter the liquid milk business.
Britannia believes by direct sourcing milk will help it innovate and roll out quality value-added dairy products quickly. “It will be scaled up to hundreds of milk collection centres in the western part of Maharashtra in the coming days and eventually, we will have to go beyond Ranjangaon to other milk surplus states to source milk,” Gunjan Shah, the company’s vice president of sales and head of dairy business, told Business Standard.
Milk collection centres have to be within a 100-km radius of processing plants. Shah did not specify the amount needed to secure the back-end of Britannia’s dairy business, but estimated said the investment in setting up collection centres around Ranjangaon is likely to be in crores.