Gujarat Cooperative Milk Marketing Federation (GCMMF), marketing its dairy products under brand 'Amul', today said it would begin manufacturing few of its dairy products in the US over the next 6-8 months.
The move is being viewed as a dry run for the Indian co-operative sector dairy giant to set up its own manufacturing facility in the US at a later stage.
Amul (Kaira) District Cooperative Milk Producers Union (ADCMPU), through a third party agreement with an existing manufacturing plant owner having a plant near New Jersy in the US, will begin producing few dairy products there,GCMMF Managing Director R S Sodhi said.
"The production is expected to commence in next six to eight months, and thereafter the federation will undertake marketing of the dairy products range there," he said.
ADCMPU, is among the 16 milk producers union on board of the federation.
GCMMF's current annual exports of dairy products to US is pegged close to Rs 35 crore (Rs 350 million). With this arrangement, the federation is looking to quadruple its sales in the key market.
"With this arrangement in place, the federation expects sales to get a big push in the US. Initially we will begin manufacturing products like paneer and ghee etc there.
Slowly other dairy product range would also be rolled out from there," Sodhi said.
"This initiative would help us in saving on duties and taxes levied on exports of dairy products from India," he said.
GCMMF clocked a turnover of Rs 13,750 crore (Rs 137.50 billion) in 2012-13, registering a growth of 18 per cent over the previous year's turnover of Rs 11,668 crore (Rs 116.68 billion).
