ITC Strengthens East India Dairy Business, Targets Value-Added Products

Through its flagship brand Aashirvaad, ITC is bolstering its position in the fresh dairy category in Eastern India. Branded milk and other dairy products with added value are expected to be in high demand in Bihar, West Bengal, and Jharkhand; therefore, the group is placing its bets on that.

With a product line that includes fresh milk, curd, paneer, lassi, and Mishti Doi, the diverse conglomerate has become the second-largest participant in Bihar's dairy industry. Launching Aashirvaad milk in Bihar in 2018, the organisation eventually expanded to West Bengal and Jharkhand, entering the fresh dairy market.

ITC Focussing on Eastern India Market

In order to cater to local preferences, consumption habits, and the ever-changing need for quality-assured dairy products, ITC has adapted its dairy range to different regions as part of its expansion plan. In response to a question regarding potential international expansion, Hemant Malik, CEO of the Foods Division and Executive Director of ITC, stated that the dairy expansion plans of the company will continue to centre on Eastern India, a market with a lot of capacity to grow.

 According to Malik, the group's expansion strategy for the next several years will revolve around the East, which is one of the most promising growth areas for the dairy sector. For example, he brought attention to the fact that more than 80% of Bihar residents buy milk in its natural state. Branded value-added dairy solutions guarantee quality, safety, and consistency, and this offers a "compelling opportunity" to move households in that direction. Over ten years ago, customers in South India began to prefer branded curd; ITC hoped to pave the way for a similar shift in Bihar.

According to Malik, the company is assisting customers in making the switch to branded curd with its pouch curd products by providing them with consistent, high-quality curd that is backed by the trust of ITC. As part of its efforts to diversify its product offering beyond Mishti Doi and other value-added offerings, ITC is also exploring new and healthier dessert options. One of the fastest-growing segments for ITC, with strong double-digit growth, is the dairy division.

ITC on an Expansion Spree

At present, ITC runs dairy production facilities in the following locations: Ranchi, Jharkhand; Munger, Patna, Muzaffarpur, and Gaya, Bihar; and Howrah and Bardhaman, West Bengal. Through its Project Gomukh initiative, ITC sources milk directly from more than 40,000 dairy farmers. According to the group, the project's main goal is to boost rural farmers' incomes and give them more control over their milk production and quality.

ITC has broadened the reach of its Aashirvaad brand beyond wheat flour to include basics, spices, fresh foods, and even frozen foods. The company intends to become the top fast-moving consumer goods (FMCG) business in India. The goal, therefore, is to increase spending by 20% to more than INR 20,000 crore over the following five years. 'Aashirvaad Svasti' fresh dairy products continued to see robust growth in FY26, as reported in the most recent annual report.

The premium milk variety 'Select' and value-added goods like curd, paneer, Mishti Doi, and lassi are the driving forces behind this expansion. The organisation is actively working to grow its distribution network and further penetrate markets. Currently, the portfolio is available across Bihar, West Bengal, and Jharkhand.