The state government of Andhra Pradesh led by Mr Jagan Reddy has issued an order on May 19. This order approves the revival of unutilized dairy plants of APDDCF. GCMMF will acquire the unutilized assets of State government . These units were earlier given to district unions. GCMMF will use these assets under production based lease.
Amul has plans to procure, process and market their milk in AP state and neighbouring markets of Chennai and Bengaluru. GCMMF will sell milk under the brand name of Amul only. This operation of GCMMF in south India is part of its strategy to expansion in South and North East India.
Earlier Amul has worked aggressively on similar model in Bihar and Jharkhand and now in North east India for milk procurement. Amul is also eyeing nearby markets of Hyderabad, Vijayawada, Vizag etc within the AP state. Amul has plans to increase its milk procurement capacities to 4.30 Crore litres per day from 3.80 Crore LPD in next two years.