ITC scales up dairy business in East India, bets on branded milk, value-added products

ITC is strengthening its presence in the fresh dairy segment in Eastern India through its flagship Aashirvaad brand, betting on rising demand for branded milk and value-added dairy products across Bihar, West Bengal and Jharkhand.

The diversified conglomerate, which entered the fresh dairy business in 2018 with the launch of Aashirvaad milk in Bihar and later expanded to West Bengal and Jharkhand, has emerged as the second-largest dairy player in Bihar with a lineup ranging from fresh milk to curd, paneer, lassi and Mishti Doi.

As part of its expansion strategy, ITC has tailored its dairy portfolio to regional tastes, local consumption patterns and evolving consumer preference for quality-assured dairy products.

When asked about expansion to other regions, Hemant Malik, Chief Executive Officer, Foods Division, and Executive Director, ITC, said Eastern India will remain a key focus market for the company's dairy expansion plans, which offers significant headroom for expansion.

"East is one of the most promising growth markets for the dairy category and will be central to our growth strategy in the coming years," Malik told PTI.

For instance, in Bihar, over 80 per cent of consumers purchase loose milk, which presents a "compelling opportunity" to transition households to branded value-added dairy solutions that ensure quality, safety, and consistency, he said.

"In South India, consumers moved to branded curd over a decade ago, and we wanted to enable a similar transition in Bihar. With our pouch curd offerings, we are helping consumers shift to branded curd that delivers assured quality and consistency, backed by the trust of ITC," said Malik.

Moreover, in the value-added segment, ITC is evaluating innovative and healthier dessert options as it seeks to broaden its portfolio beyond products such as Mishti Doi.

For ITC, the dairy business is "one of the fastest-growing categories witnessing high double-digit growth".

It currently operates dairy manufacturing facilities at Munger, Patna, Muzaffarpur and Gaya in Bihar, Ranchi in Jharkhand, and Howrah and Bardhaman in West Bengal.

As part of Project Gomukh, ITC works with over 40,000 dairy farmers and directly procures milk from dairy farmers.

"The overarching objective of the project is to increase milk productivity and improve the quality of milk, while empowering rural farmers and increasing their income," it said.

ITC, which aspires to become India's leading FMCG player, has expanded brand Aashirvaad beyond wheat flour into staples, spices and fresh foods, and even the frozen category, aiming to double consumer spends to over ₹20,000 crore in the next five years.

According to the company's latest annual report, its 'Aashirvaad Svasti' fresh dairy portfolio maintained strong growth during FY26, aided by the strengthening of its premium milk variant 'Select' and robust growth in value-added products such as curd, paneer, Mishti Doi and lassi.

The portfolio is currently available across Bihar, West Bengal and Jharkhand, with the company continuing to expand its distribution network to deepen market penetration.

ITC has also strengthened its farmer-driven milk procurement network across the three eastern states to support the growing requirements of the dairy business.

The company said it supported around 33,300 dairy farmers across more than 560 villages of Bihar, West Bengal and Jharkhand through veterinary services, cattle feed distribution, deworming, mastitis control and other animal husbandry initiatives during the year.