Banaskantha District Co-operative Milk Producers Union, a member of the union of Gujarat Co-operative Milk Marketing Federation that markets Amul, is planning to set up a dairy plant in Varanasi, Uttar Pradesh.

The project, estimated to cost Rs 200 crore, will have a capacity of five lakh ltr per day, which will later be expanded to 10 lakh ltr per day. The company has completed the process with UP State Industrial Development Corporation, for land acquisition at Karkhianv industrial area near Varanasi airport.

Besides the proposed plant, the company is also setting up two dairy plants in the state. It has acquired 40 acre in Kanpur and another 20 acre in Lucknow to set up dairy processing units, each entailing an investment of Rs 200 crore. Both the dairy units will have the capacity to process five lakh ltr per day, expandable to 10 lakh ltr per day.

Initially, Amul will start milk, curd, and buttermilk packaging, and later add ice cream and other dairy products at the plants.