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Rediff News  All News  » Business » Amul to bake cakes and cookies

Amul to bake cakes and cookies

July 07, 2008 14:30 IST

Dairy company earmarks Rs 12 crore (Rs 120 million) to set up facility to make 100,000 bread packs a day.

After ruling the packaged milk and ice cream markets, Brand Amul has set its eyes on the bakery segment. Anand-based Gujarat Cooperative Milk Marketing Federation, which markets Amul brand of dairy products, is planning to manufacture biscuits and cakes under the umbrella brand name.

A range of bakery items, including bread, bun and toast, is also on the menu of Kaira District Co-operative Milk Producers' Union, an important member of GCMMF.

Currently, the union is conducting a pilot run for the products at its facility at Mogar.

According to sources, the union has lined up investments to the tune of Rs 12 crore (Rs 120 million) for setting up a manufacturing facility with a capacity to produce of 1,00,000 bread packets a day, which may be enhanced later. It will manufacture biscuits and cakes subsequently.

"The biscuit and bakery items project will go on floors after one or two years," said Rahul Kumar Shrivatsava, managing director, Kaira District Cooperative Milk Producers' Union.

He, however, did not divulge the investment details for biscuits and cake project. Besides, GCMMF is all set to unveil milk shakes in three different tastes such as mango, strawberry and banana, in two months time.

"Awareness about natural taste and wellness is on the rise among people. After the response to flavoured milk, butter milk, lassi, Cool Cafe and Cool Coco, we are going to launch Amul milk shake in three different varieties with taste of fruits", said R S Sodhi, chief general manager, GCMMF.

"We aim to launch it in the middle of August. Each 250 grams of Amul shakke tin will be priced at Rs 20. We are targeting a sale of 50,000 to 1,00,000 tins per day. The new offerings has been specially designed the teenager class of youths," he said.

The company plans to enter into new domestic markets such as Allahabad and Ajmer, Sodhi said.

Nishith Trivedi in Ahmedabad