ITC is strengthening its presence in the fresh dairy segment in Eastern India using its flagship brand Aashirvaad. The company is betting on the growing demand for branded milk and value-added dairy products in the states of Bihar, West Bengal, and Jharkhand.
This diversified conglomerate began operating in the fresh dairy sector in 2018 with the launch of Aashirvaad milk in Bihar, subsequently expanding its operations to West Bengal and Jharkhand. As a result, ITC has become the second-largest player in the dairy market in Bihar, offering a range from fresh milk to paneer, lassi, and Mishti Doi.
As part of its expansion strategy, ITC has adapted its dairy portfolio to local taste preferences, consumption habits, and changing consumer demands for quality dairy products. When asked about plans for expansion into other regions, Hemant Malik, Executive Director of the Foods Division and CEO of ITC, stated that Eastern India will remain a key market for the company's dairy business expansion plans due to significant growth potential here.
Malik told PTI that 'the East is one of the most promising growth markets for the dairy category and will be a central element of our growth strategy in the coming years.' He also noted that over 80 percent of consumers in Bihar purchase milk loose, which presents a 'convincing opportunity' for households to switch to branded, value-added dairy solutions that guarantee quality, safety, and consistency.
According to Malik, the company aims to achieve a similar transition to branded curd in Bihar as was seen in South India more than a decade ago. Through packaged curd offerings, ITC helps consumers transition to a branded product that guarantees quality and consistency, backed by trust in ITC.
Furthermore, in the value-added segment, ITC is exploring innovative and healthier dessert options, aiming to expand its range beyond products like Mishti Doi. For ITC, the dairy business is 'one of the fastest-growing categories, demonstrating high double-digit growth.'
Currently, the company manages dairy production facilities in Mundher, Patna, Muzaffarpur, and Gaya in Bihar, Ranchi in Jharkhand, and Horakha and Bardhaman in West Bengal. Under the Gomukh Project, ITC collaborates with over 40,000 livestock farmers and purchases milk directly from them.
The company stated that the main objective of the project is to increase milk productivity and improve its quality while supporting rural farmers and increasing their income. ITC, which aims to be a leading FMCG player in India, has expanded the Aashirvaad brand beyond wheat flour to include groceries, spices, fresh produce, and even the frozen category, with the goal of doubling consumer spending to over ₹20,000 crore in the next five years.
According to the latest annual report, the 'Aashirvaad Svasti' fresh dairy portfolio demonstrated steady growth in FY26, driven by the strengthening of the premium 'Select' milk variant and the active growth of value-added products such as curd, paneer, Mishti Doi, and lassi. This portfolio is available in Bihar, West Bengal, and Jharkhand, while the company continues to expand its distribution network to deepen market penetration.
ITC has also strengthened its farmer-based milk procurement network across all three eastern states to support the growing needs of the dairy business. Over the year, the company supported approximately 33,300 livestock farmers in over 560 villages across Bihar, West Bengal, and Jharkhand, providing veterinary services, distributing cattle feed, conducting deworming, controlling mastitis, and implementing other animal husbandry initiatives.