BL Agro, one of India’s top FMCG companies, is venturing into the dairy sector in collaboration with the Ministry of Animal Husbandry and Dairy. The company has pledged to invest INR 1,000 crores by the conclusion of 2025.
BL Agro’s Managing Director, Ashish Khandelwal, has confirmed that the company has procured 109 acres of land in Bareilly, Uttar Pradesh and Amreli, Gujarat to establish farms dedicated to cow breeding.
“We are planning to venture into animal husbandry. We will be getting the best of the Brazilian cows to India as they are known for the best products, and then eventually, we will introduce dairy products like milk and cheese into the market,” he said.
BL Agro intends to sign a Memorandum of Understanding (MoU) with a top Brazilian company that specializes in embryo development, animal cloning, and animal feed supplements. The partnership will enable BL Agro to leverage the same technology for embryo development and animal feed supplement production in India.
“The Brazilian cow usually produces 40 litres of milk per day, and the best among the lot produces 60 to 65 litres per day, viz-a-viz. Indian cows produce usually 6 to 7 litres of milk on a daily basis. The climatic conditions of India and Brazil are more or less the same, with minor fluctuations. Therefore, cow products can easily be replicated in India as well,” he explained.
“We aim to develop 7,200 cows during the first year of operations. It will take us at least 2 years to venture into the dairy segment after that,” he added.
The announcement from BL Agro came amidst a significant demand-supply gap in the dairy sector, largely driven by heightened consumption of safe, hygienic, and nutritious milk and milk products following the pandemic.
During a recent press conference, Animal Husbandry and Dairy Secretary Rajesh Kumar Singh reported that India’s milk production remained stagnant in the 2022-23 fiscal year due to the prevalence of lumpy skin disease in cattle. Meanwhile, domestic demand grew by 8-10% during the same period, driven by a resurgence in post-pandemic demand.
In addition to this, milk prices have experienced a substantial rise in the past six months and are expected to continue increasing due to a shortage leading into the peak demand season.
BL Agro clocked INR 3,800 crores in revenue last fiscal and is eyeing to close this fiscal at an estimated revenue of INR 6,000 crores. “By 2026-2027, we expect to have a turnover of INR 10,000 crores for our mustard oil brand, Bail Kolhu, and our staples brand, Nourish,” Khandelwal said. The company, which has a production capacity of 900 metric tonnes per day, currently offers 80 SKUs under the brands Bail Kolhu and Nourish.