Milkfood to expand premium dairy portfolio with A2 Ghee

INDIA – Milkfood Limited is expanding its presence in India’s premium dairy segment with plans to launch ghee made from A2 milk, as the company looks to capture growing consumer interest in differentiated and value-added dairy products.

The proposed A2 Ghee launch forms part of Milkfood’s broader strategy for FY2026-27, which combines premium product development with manufacturing capacity expansion, improved asset utilisation, energy-cost optimisation and financial discipline.

Milkfood said changing consumer preferences are creating opportunities beyond conventional dairy staples. Consumers are increasingly interested in products positioned around quality, provenance, and traditional dairy practices.

Ghee remains an important dairy category in Indian households, with strong links to traditional food practices and regular consumption. Milkfood intends to position its A2 Ghee as a premium offering for consumers seeking differentiated dairy products.

The company expects the product to complement its existing portfolio while helping improve product realisations. A significant investment in Milkfood’s manufacturing infrastructure is supporting the premium product strategy.

The company is investing approximately ₹20 crore at its Patiala plant to establish a dedicated butter manufacturing facility. The investment includes the acquisition of a Continuous Butter Machine and the development of a Butter Cold Room.

The company expects the investment to strengthen its butter manufacturing capabilities while providing greater flexibility and capacity to expand its value-added dairy portfolio.

The Patiala investment is part of Milkfood’s wider effort to improve capacity utilisation and create an operating base capable of supporting future growth.

Milkfood has also been reallocating capital from existing assets towards its current growth priorities.

During FY2025-26, the company sold its Moradabad Plant at Agwanpur for approximately ₹130 crore. The proceeds were used for loan repayment, working capital requirements and capital expenditure at the Patiala facility.

This asset monetisation strategy is intended to reduce financial leverage while directing capital towards productive capacity and growth opportunities.

Alongside its product expansion plans, Milkfood is pursuing measures to reduce operating costs and improve energy efficiency.

The company plans to transition its boiler fuel from rice husk to parali, or paddy straw and agricultural residue. The initiative is expected to improve the utilisation of agricultural waste while helping optimise energy costs.

Milkfood is also installing a 500 kWp solar power plant for captive consumption as part of its efforts to improve energy efficiency and reduce dependence on conventional energy sources.

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