Madhur Dairy expands processing capacity with new automated plant

The INR 128-crore facility at Dashela in Gujarat is expected to double Madhur Dairy’s milk processing capacity to 5 lakh litres per day while strengthening cooperative-led dairy infrastructure and packaging operations

19 May 2026 | 46 Views | By Sai Deepthi

Madhur Dairy has inaugurated a new automated milk processing and packaging facility at Dashela in Gandhinagar, Gujarat, aimed at expanding milk processing capacity and strengthening cooperative-led dairy infrastructure.

The facility was inaugurated by Amit Shah in the presence of Bhupendra Patel and other officials. According to a statement issued by the Press Information Bureau, the plant has been developed at an investment of INR 128-crore across 15 acres.

The dairy said the facility currently has the capacity to process 2.5 lakh litres of milk per day, with future expansion plans expected to increase capacity to 5 lakh litres per day. The project includes automated milk processing and packaging systems intended to support operational efficiency and higher throughput.

Speaking at the inauguration, Shah said the project represented a significant step towards strengthening rural livelihoods and cooperative-led economic development.

Established in 1971, Madhur Dairy has expanded from collecting approximately 6,000 litres of milk per day during its early years to an organisation with an annual turnover of INR 628-crore, according to government data.

The development also reflects continued investments in India’s dairy processing and packaging ecosystem, where automation, cold-chain infrastructure, and value-added dairy products are becoming increasingly important.

During the event, Shah said the government’s “White Revolution 2.0” initiative aims to significantly expand India’s milk production over the next decade. He added that cooperative dairies including Amul, Banas Dairy, and Mehsana Dairy were adopting advanced technologies to improve productivity and farmer income.

The minister also highlighted the growing role of value-added dairy products such as protein beverages and probiotic products within the cooperative dairy segment.

According to the statement, nearly 36 lakh women are currently associated with cooperative milk production networks in Gujarat, contributing approximately 3 crore litres of milk per day.

The event also featured discussions around technology adoption in dairy operations, including Amul’s AI-based digital assistant platform “Sarlaben”, which is intended to support livestock farmers and dairy producers with digital tools and information access.

Industry observers note that investments in automated dairy processing and packaging infrastructure are expected to grow as dairy brands focus on operational efficiency, food safety, product diversification, and supply chain optimisation.

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