Amul Maker GCMMF to Invest ₹10,000 Crore in New Dairy & Food Plants to Boost Growth

Gujarat Cooperative Milk Marketing Federation (GCMMF), the maker of iconic brand Amul, has unveiled plans to invest ₹10,000 crore over the next 2–3 years. The investment will fund 10–12 new plants focused on dairy, ice cream, and packaged food products. The expansion aligns with GCMMF’s ambition to cross the ₹1 lakh crore turnover milestone, building on its FY25 revenue of ₹90,000 crore.

The announcement will be formally made at the World Food India 2025 summit in Delhi, highlighting Amul’s aggressive growth strategy amid rising demand and recent GST-driven price cuts.

Second Big Investment in Two Years

This will be GCMMF’s second-largest investment tranche in recent years. In 2023, the federation committed ₹11,000 crore, which has already been deployed across segments like ghee, cheese, curd, protein products, and organic food lines.

With nearly 118 operational plants and a daily milk processing capacity of 440 lakh litres, Amul has steadily strengthened its position, commanding a 50–70% market share in pouched milk and other dairy products.

Driving Growth Through Capacity Expansion

According to GCMMF Managing Director Jayen Mehta, the upcoming investment will enable the cooperative to scale production across dairy, beverages, and packaged food categories. The move also comes in anticipation of a surge in demand following the GST rate rationalisation on food and beverages.

GCMMF has diversified its product portfolio beyond dairy into organic dals, wheat flour, basmati rice, spices, and frozen snacks, reinforcing its identity as a comprehensive food and beverage company.

Price Cuts to Boost Consumption

In addition to expanding capacity, Amul has announced price reductions across 700+ product packs, including ghee, butter, chocolates, paneer, ice cream, UHT milk, and bakery items. With GST now reduced to 5% on key categories, lower retail prices are expected to spur consumer demand in India, where per-capita processed food consumption remains relatively low.

Financial Performance and Outlook

GCMMF reported an 11% year-on-year revenue growth to ₹65,911 crore in FY25, largely driven by higher volumes. However, its consolidated revenue appears smaller than Amul’s total sales, as several dairies sell directly under the Amul brand outside GCMMF’s central reporting.

Looking ahead, the cooperative expects its capacity expansion and price cuts to significantly boost consumption and help achieve its ambitious ₹1 lakh crore turnover target within the next couple of years.

FAQ on GCMMF’s ₹10,000 Crore Investment

1. What is GCMMF investing in?

GCMMF will invest ₹10,000 crore to set up 10–12 new plants for dairy, ice cream, and packaged food products in India.

2. Why is GCMMF expanding capacity now?

The cooperative is preparing for a demand surge following GST cuts and aims to achieve a ₹1 lakh crore turnover within the next 2–3 years.

3. How many plants does Amul currently operate?

GCMMF already runs about 118 plants nationwide, with a milk processing capacity of 440 lakh litres per day.

4. Will Amul products get cheaper?

Yes. Amul has announced price cuts on 700+ products like ghee, butter, paneer, chocolates, and UHT milk after the GST rate dropped to 5%.

5. How did Amul perform financially in FY25?

GCMMF reported ₹65,911 crore revenue in FY25, marking an 11% YoY growth, while overall Amul brand sales crossed ₹90,000 crore.