India's Mahindra Agribusiness is planning to foray into the dairy industry by focusing on the production of pouched milk.
Growth opportunities in the dairy sector prompted the move by Mahindra as farm productivity in the country is only about 50% of that in advanced countries, reports The Economic Times.
Mahindra Agri and Allied Businesses chief executive Ashok Sharma said: "We are exploring inorganic strategies for entry into the dairy business.
"Dairy can supplement farmers' incomes in tough times and can hedge climate risks."
The company is planning to replicate the supply chain model of its grape exporter Mahindra ShubhLabh Services to boost its milk production. Mahindra ShubhLabh works with grape farmers, offering them the required technical support.
India is said to be the world's largest milk producer, accounting for over 17% of total production. The Indian dairy market is estimated to be worth $10bn in annual sales, as per dealcurry.com.
