Milkfood Plans A2 Ghee Launch, Invests ₹20 Crore

Milkfood Limited is expanding into India’s premium dairy segment with plans to introduce ghee made from A2 milk, as part of its strategy to strengthen its portfolio of value-added dairy products. The planned launch is aimed at consumers seeking differentiated products linked to quality, provenance and traditional dairy practices, while helping the company pursue higher product realisations and diversify beyond volume-led growth.

The premiumisation strategy is being backed by a ₹20 crore capital expenditure at the company’s Patiala plant, which includes establishing a dedicated Butter Plant and acquiring critical infrastructure such as a Continuous Butter Machine and Butter Cold Room. The investment is intended to strengthen butter manufacturing capabilities, improve manufacturing flexibility and support better capacity utilisation as Milkfood expands its value-added product mix.

Milkfood is also reallocating capital through asset monetisation. During FY2025-26, the company sold its Moradabad Plant at Agwanpur for approximately ₹130 crore, with the proceeds deployed towards loan repayment, working capital and capital expenditure at Patiala.

Alongside expansion, the company is focusing on energy efficiency and sustainability. It plans to transition its boiler fuel from rice husk to parali (paddy straw/agricultural waste) and is installing a 500 kWp solar power plant for captive consumption, measures aimed at optimising energy costs, utilising agricultural residue and reducing dependence on conventional power sources.

Milkfood is also looking to scale its job work business, with revenue from this segment expected to reach approximately ₹30 crore in FY2026-27. The company expects the expansion to create an additional revenue stream while improving utilisation of its existing manufacturing infrastructure and operating efficiency.

For FY2026-27, Milkfood’s strategy combines premium product development, manufacturing capacity expansion, asset optimisation, cost control and revenue diversification. The company expects these initiatives to contribute positively to revenue growth, capacity utilisation and profitability, with Profit After Tax (PAT) projected at approximately ₹17 crore. (Moneycontrol)

Source: Dairynews7x7 30 Aug, 2026 Read full story here

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