Banas Dairy is expanding its presence in India’s food-processing industry with a ₹51.65 crore investment in its French fries processing and packing facility at Sanadar in Gujarat’s Vav-Tharad district. Prime Minister Narendra Modi is scheduled to inaugurate the expanded facility virtually on October 30, 2026, as part of his two-day visit to Gujarat.
The expansion, which began in April 2026, will increase the plant’s production capacity from 2 tonnes to 5 tonnes per hour. The development is expected to strengthen potato processing infrastructure in Banaskantha, a major potato-producing region, while creating additional opportunities for farmers supplying potatoes for industrial processing.
The project reflects the growing importance of value-added agricultural products in India’s food industry, where processing infrastructure can connect agricultural production with organised supply chains and consumer markets.
From 2 to 5 Tonnes Per Hour: Key Details of the Expansion
The upgraded facility will significantly increase Banas Dairy’s ability to process potatoes into French fries.
The expansion includes improvements to the production and packing line, enabling the facility to handle higher volumes of potatoes and finished products.
Key project details include:
Investment: ₹51.65 crore.
Location: Sanadar, Deodar taluka, Gujarat.
Existing processing capacity: 2 tonnes per hour.
Expanded processing capacity: 5 tonnes per hour.
Capacity increase: 150%.
Project work commenced: April 2026.
Scheduled inauguration: October 30, 2026.
The additional capacity of 3 tonnes per hour could support greater production volumes, depending on operating hours, demand, raw material availability and plant utilisation.
Banas Dairy’s Farm-to-Factory-to-Fries Model
One of the most significant aspects of the project is Banas Dairy’s integrated supply chain, which covers multiple stages of French fries production, from planting material to the finished product.
The cooperative has developed a system that connects laboratory-based plantlet development, seed multiplication, potato cultivation, cold storage, processing and final delivery.
The process begins with disease-free potato germplasm sourced from the Central Potato Research Institute and other providers. Banas Dairy multiplies the planting material through its tissue-culture laboratory and uses an aeroponic facility in Kanpur to produce G0 minitubers.
These minitubers are subsequently multiplied in fields through further generations to produce certified seed potatoes for cultivation. This approach supports the availability of potatoes suitable for industrial processing.
After harvesting, potatoes can be stored in dedicated cold-storage infrastructure before being processed into French fries.
The integrated model is intended to improve coordination across the supply chain, strengthen the availability of processing-grade potatoes and support more consistent raw material procurement.
Banaskantha Emerges as a Major Potato Processing Hub
The expansion comes as Banaskantha continues to strengthen its position in potato cultivation, particularly for processing-grade varieties used in products such as French fries.
According to project-related reports, the area under processing-grade potato cultivation in the district has increased from approximately 400 hectares around 25 years ago to 61,016 hectares.
During 2024–25, Banaskantha reportedly produced approximately 1.87 million tonnes of potatoes, with average productivity of around 30 tonnes per hectare.
Favourable winter conditions, suitable potato varieties and contract-farming arrangements have contributed to the development of the region’s processing-grade potato sector.
The availability of agricultural output, combined with investments in storage and processing, provides a foundation for expanding value addition within the district.
How the Project Could Benefit Potato Farmers
Banas Dairy’s integrated model includes an advance procurement price mechanism designed to give farmers greater clarity about the expected price of their produce.
Under the reported arrangement, the procurement price is fixed when seeds are supplied to farmers. This allows growers to plan cultivation with a clearer understanding of the price structure before the crop is harvested.
Project-related reports state that Banas Dairy passed on a price difference of approximately ₹1.83 crore to potato farmers during 2023–24.
The reported buyback prices were ₹13 per unit in 2024–25 and ₹14 per unit in 2025–26; the cited report does not clearly specify the unit in its published account.
The expansion could create additional opportunities for farmers to supply potatoes to the processing industry. However, the actual impact on farmer incomes will depend on procurement volumes, quality standards, contractual terms and prices.
10,000-Tonne Cold Storage Supports the Potato Supply Chain
Storage is an important component of the French fries business because processing plants require a consistent supply of suitable potatoes.
Banas Dairy established a potato cold-storage facility with a reported capacity of 10,000 tonnes in 2024 to strengthen its supply chain.
The cooperative also signed a memorandum of understanding with Bharatiya Beej Sahakari Samiti Ltd in November 2025 to support the availability of certified potato seeds to farmers across India.
Together, seed development, cultivation, procurement and storage infrastructure can help strengthen the connection between agricultural production and industrial processing.
India’s Value-Added Potato Exports Offer Growth Opportunities
The expansion comes amid opportunities for Indian food processors to increase the production and export of value-added potato products.
According to figures reported in connection with the project, India exported approximately 2.77 lakh tonnes of value-added potato products worth around ₹2,744.50 crore during 2025–26.
These figures cover value-added potato products as a category and should not be interpreted as French fries exports alone.
The Sanadar facility’s location within Gujarat also offers logistical advantages, with the ports of Kandla and Mundra providing access to international shipping routes.
Higher processing capacity could help Banas Dairy strengthen its ability to serve domestic and export markets. However, the company’s specific export targets, confirmed overseas orders and planned export volumes for the expanded line have not been disclosed in the cited reports.
Potato Waste Utilisation Adds Another Dimension
Banas Dairy’s potato-processing operations also incorporate the use of organic waste generated during processing.
According to project-related information, potato-processing waste is used to produce biogas, while residual material is returned to agricultural fields.
Such practices can help put organic by-products to productive use and support resource efficiency within food-processing operations.
Part of Banas Dairy’s Wider ₹407.56 Crore Investment Programme
The French fries plant is one of three major Banas Dairy projects scheduled for inauguration on October 30, with a combined reported investment of ₹407.56 crore.
The other projects are:
Bharat Bovine Breeding and Research Centre, Bhildi: Developed at a reported cost of ₹324.77 crore, the centre focuses on livestock breeding and research.
Automated Storage and Retrieval System, Palanpur: Built at a reported cost of ₹31.14 crore, the facility is designed to automate the storage and dispatch of ultra-high-temperature dairy products. Its nine-level steel-rack system can accommodate 11,000 pallets.
The French fries processing plant and the Palanpur automated storage facility are scheduled for virtual inauguration, while the breeding and research centre is included in the programme at Bhildi.
The wider programme also includes the planned foundation stones for two Bio-CNG plants at Tharad and Radhanpur, with reported cattle-dung processing capacities of 75 and 100 metric tonnes per day, respectively. These are separate projects from the French fries expansion.
What the Expansion Means for India’s Food Processing Industry
Banas Dairy’s French fries plant expansion highlights the growing role of cooperatives in moving beyond traditional agricultural procurement and into value-added food manufacturing.
By linking seed development, potato cultivation, storage and processing, the cooperative is building a supply chain that connects farmers more directly with the processed-food market.
The increase from 2 to 5 tonnes per hour will expand the facility’s processing capacity, while the availability of dedicated storage and organised procurement can support the wider potato ecosystem.
The long-term impact will depend on how effectively the expanded plant utilises its capacity, secures raw material supplies, reaches new customers and translates higher processing volumes into sustainable returns for farmers.
With the inauguration scheduled for October 30, the Sanadar project is set to become a notable development in Gujarat’s potato-processing sector and India’s wider value-added food industry.
Sources: Prime Minister’s Office; DeshGujarat; reporting based on project details released ahead of the October 30, 2026, inauguration.