ITC expands dairy play in East India, bets on branded milk

ITC is solidifying its position in Eastern India's fresh dairy market through its flagship Aashirvaad brand, leveraging growing consumer appetite for branded milk and value-added offerings across Bihar, West Bengal, and Jharkhand.

Since entering the fresh dairy segment in 2018 with the rollout of Aashirvaad milk in Bihar—followed by expansions into West Bengal and Jharkhand—the diversified conglomerate has established itself as the second-largest dairy brand in Bihar. Its product suite spans fresh milk, curd, paneer, lassi, and Mishti Doi.

To drive its market expansion, ITC has tailored its dairy portfolio to align with regional palates, local consumption habits, and rising demand for reliable, quality-certified dairy products.


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Addressing potential geographical expansion, Hemant Malik, Chief Executive Officer, Foods Division, and Executive Director, ITC, emphasized that Eastern India remains the central focus for the company's dairy roadmap due to substantial untapped potential.

"East is one of the most promising growth markets for the dairy category and will be central to our growth strategy in the coming years," Malik told PTI.

Malik highlighted that in Bihar, over 80 percent of consumers still buy loose milk, creating a "compelling opportunity" to convert households toward packaged, value-added dairy options that guarantee quality, safety, and uniformity.

"In South India, consumers moved to branded curd over a decade ago, and we wanted to enable a similar transition in Bihar. With our pouch curd offerings, we are helping consumers shift to branded curd that delivers assured quality and consistency, backed by the trust of ITC," said Malik.

Looking ahead in the value-added segment, ITC is assessing novel and healthier dessert formats to diversify its offerings beyond established products like Mishti Doi.

For ITC, dairy stands out as "one of the fastest-growing categories witnessing high double-digit growth".

The company currently manages dairy processing plants across several regional hubs: Munger, Patna, Muzaffarpur, and Gaya in Bihar; Ranchi in Jharkhand; and Howrah and Bardhaman in West Bengal.

Through its Project Gomukh initiative, ITC engages with over 40,000 dairy farmers via direct milk sourcing networks.

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"The overarching objective of the project is to increase milk productivity and improve the quality of milk, while empowering rural farmers and increasing their income," the company stated.

Aiming to secure leadership in India's FMCG landscape, ITC has grown the Aashirvaad umbrella beyond atta into staples, spices, fresh foods, and frozen products, targeting a doubling of consumer spends to exceed Rs 20,000 crore over the next five years.

According to the company's latest annual report, the 'Aashirvaad Svasti' fresh dairy business sustained robust momentum through FY26, driven by gains in its premium 'Select' milk variant and strong sales in value-added lines including curd, paneer, Mishti Doi, and lassi.

With current availability spanning Bihar, West Bengal, and Jharkhand, ITC continues to build out its distribution reach to deepen market penetration.

ITC has expanded its direct farmer-driven supply chain across the three eastern states to meet rising processing demands. Over the past year, the company assisted roughly 33,300 dairy farmers in more than 560 villages across Bihar, West Bengal, and Jharkhand through veterinary aid, cattle feed supply, deworming drives, mastitis management, and broader livestock husbandry support.