Godrej Agrovet to Invest ₹70 Crore in Andhra Pradesh Dairy Expansion
Godrej Agrovet Limited (GAVL) has announced a significant investment initiative by signing a non-binding Memorandum of Understanding (MoU) with the Government of Andhra Pradesh. The agreement outlines a ₹70 crore investment aimed at strengthening the company's dairy-processing operations, which are conducted under its subsidiary, Creamline Dairy Products Limited, known for the Godrej Jersey brand.
This investment is a strategic move to expand GAVL's footprint in the value-added dairy segment, responding to increasing consumer demand in southern India. Part of the capital will be used to enhance processing capacity and scale up manufacturing of value-added dairy products such as curd, paneer, flavoured milk, and premium packaged dairy lines. This expansion will help reduce the company's reliance on fluid milk, stabilize margins, and target urban and semi-urban markets.
Additionally, the MoU includes plans for establishing five Samadhan Centres in Andhra Pradesh. These centres will serve as support hubs for farmers, particularly within the oil-palm ecosystem, contributing to GAVL's broader agribusiness supply chain. This expansion reflects the company's integrated approach to agricultural engagement, improving the linkage between dairy procurement and farmer services.
The partnership highlights Andhra Pradesh's reputation for investment-friendly policies and efficient governance, as well as its rapidly growing agri-food economy. For the dairy sector, this collaboration underscores the state's intention to attract large-scale organized players capable of modernizing procurement and improving cold-chain infrastructure.
This investment comes amidst a broader trend in India's dairy industry, where companies are shifting focus from bulk liquid milk to value-added product portfolios. The ₹70 crore investment positions GAVL to capitalize on rising consumer preferences for hygienic, high-protein, and ready-to-consume dairy formats, strengthening its competitive position in southern markets.
Though the MoU is non-binding, it signals Godrej Agrovet's intent to deepen its presence in the dairy value chain through enhanced farmer integration, expanded processing infrastructure, and a focus on high-margin dairy categories.
