Milkfood plans ₹20 crore Patiala plant for premium dairy

Milkfood’s premium-product rollout is part of a corporate programme for FY2026-27. The plan combines higher-value product development with upgrades to manufacturing capacity, greater use of existing assets and financial discipline.

The company is allocating ₹20 crore to capital expenditure at its main manufacturing site in Patiala, Punjab. The programme includes a dedicated butter plant intended to support the processing of value-added dairy products.

The new facility is being equipped with a Continuous Butter Machine and a temperature-controlled cold-storage unit for butter. Milkfood said the infrastructure is designed to provide greater operating flexibility and improve processing efficiency.

The Patiala investment follows the completion of an asset-monetisation programme in FY2025-26. During that financial year, Milkfood sold its processing facility in Moradabad, at Agwanpur in Uttar Pradesh, for approximately ₹130 crore.

According to the company, proceeds from the Moradabad sale were used to repay term loans, strengthen working capital and finance additional processing lines at the Patiala hub. The company’s FY2026-27 plan also includes targeting approximately ₹30 crore in revenue from third-party contract manufacturing, or job-work operations.