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Mahindra Agribusiness to enter into dairy production

DBR Staff Writer Published 27 August 2014

India-based Mahindra Agribusiness is planning to enter the dairy industry, by focusing on the production of pouched milk.

The Economic Times reported that the company has observed growth opportunities in the dairy sector, as farm productivity in India is only about 50% of that in advanced countries.

Mahindra Agri and Allied Businesses CEO Ashok Sharma said: "We are exploring inorganic strategies for entry into the diary business.

"There is a shift happening from loose to pouched milk and yet 70% of the milk sold in India is loose. That is why we would like to build a strong collection capability.

"We want to work with (dairy) farmers like we work with our grape farmers."

The company is planning to use the supply chain model of its grape exporter Mahindra ShubhLabh Services by dealing directly with farmers.

The company will provide dairy farmers with required support such as proper access to water to cattle.