Godrej Agrovet Limited (GAVL) has signed a non-binding Memorandum of Understanding with the Government of Andhra Pradesh to invest ₹70 crore in strengthening its dairy-processing operations under its subsidiary, Creamline Dairy Products Limited, which markets products under the Godrej Jersey brand.
This planned investment marks a strategic step for the company as it aims to expand its footprint in the value-added dairy segment—an area witnessing robust consumer demand across southern India. Andhra Pradesh, with its strong milk-production base and supportive policy environment, has emerged as a key region for dairy-sector investments.
According to the announcement, part of the capital will be utilised to enhance processing capacity and scale up value-added dairy manufacturing, including curd, paneer, flavoured milk and premium packaged dairy lines. Increasing value-added output allows GAVL to reduce its dependence on fluid milk, stabilise margins and grow in high-demand urban and semi-urban markets.
The MoU also includes plans for setting up five Samadhan Centres in the state. These centres function as one-stop support hubs for farmers, particularly in the oil-palm ecosystem, but also contribute to strengthening GAVL’s broader agribusiness supply chain. Their expansion in Andhra Pradesh reflects the company’s integrated approach to agricultural engagement, linking dairy procurement and farmer services more cohesively.
In commenting on the partnership, the company highlighted Andhra Pradesh’s reputation for investment-friendly policies, efficient governance and the state’s fast-growing agri-food economy. For the dairy sector, this collaboration signals the state’s intention to attract large-scale organised players capable of modernising procurement, ensuring quality consistency and improving cold-chain infrastructure.
The investment comes at a time when India’s dairy companies are increasingly shifting focus from bulk liquid milk to value-added product portfolios. With rising consumer preference for hygienic, high-protein and ready-to-consume dairy formats, the ₹70 crore outlay positions GAVL to tap into evolving demand while strengthening its competitive position in southern markets.
While the MoU remains non-binding, its strategic direction is clear: Godrej Agrovet intends to deepen its presence in the dairy value chain through better farmer integration, expanded processing infrastructure and heightened emphasis on high-margin dairy categories. If executed effectively, the move could provide a meaningful boost to both the company’s growth trajectory and the dairy ecosystem of Andhra Pradesh.
