In a significant push to modernize Punjab’s dairy sector, Chief Minister Bhagwant Mann laid the foundation stone for a ₹135 crore expansion project at the Amritsar Verka Milk Plant. The initiative aims to enhance production capabilities for sterilized flavoured milk and a range of new fermented dairy products.
Speaking at the inauguration, CM Mann emphasized that this level of public investment and industry engagement was previously unseen in the state’s dairy sector. “Earlier governments prioritized personal gains over public welfare. Today, we are committed to driving progress that benefits our farmers and consumers alike,” he said.
The facility upgrade will expand Milkfed’s product line with innovations such as ready-to-drink Rabri and Kaju Badam milk, targeting evolving consumer tastes. These developments are set to increase market competitiveness and diversify revenue streams for Punjab’s dairy cooperative.
Verka Goes Digital and Global
CM Mann also announced Verka’s foray into e-commerce, bringing its range of dairy products to a broader digital consumer base. In a strategic branding move, the government plans to appoint leading sports personalities from Punjab as Verka brand ambassadors to enhance global reach and consumer trust.
“Punjab has always been at the forefront of the White Revolution,” said Mann. “Through quality milk, lassi, curd, and now innovative new products, we’re not just preserving tradition—we’re scaling it.”
New Policies to Empower Milkfed Employees
In parallel, the state has introduced new employee service rules for Milkfed, aligning their compensation with government employees and implementing performance-based incentives. This policy overhaul is expected to improve productivity, retention, and staff morale across the federation.
Founded in 1973, Milkfed Punjab has grown to become the seventh-largest dairy cooperative in India, with an annual turnover exceeding ₹6,000 crore. The latest investment reaffirms the government’s commitment to strengthening the dairy economy while ensuring fair and profitable markets for farmers.
Comprehensive Analysis of the Amritsar Verka Milk Plant Expansion
The expansion of the Amritsar Verka Milk Plant, inaugurated by Punjab Chief Minister Bhagwant Mann on April 9, 2025, with a ₹135 crore investment, marks a pivotal development in Punjab’s dairy sector. This initiative, undertaken by the Punjab State Cooperative Milk Producers’ Federation Limited (Milkfed), aims to enhance production capabilities for sterilized flavored milk and a range of new fermented dairy products. Below, we provide a detailed examination of its impact, drawing on insights from Dairy Dimension and other relevant sources, to offer a holistic perspective on its implications for production, market expansion, farmer empowerment, employment, and product innovation.
Overview
The expansion of the Amritsar Verka Milk Plant is a significant initiative by Punjab’s dairy cooperative, Milkfed, to modernize and expand its operations. With a ₹135 crore investment, the project aims to enhance production capabilities for sterilized flavored milk and new fermented dairy products, potentially benefiting farmers, consumers, and the regional economy. It seems likely that this project will boost production and market reach, based on recent trends.
Background and Context
The Amritsar Verka Milk Plant, established in 1959, has been a cornerstone of Punjab’s dairy industry, initially processing 60,000 liters per day and now handling significant volumes under the Verka brand, which is managed by Milkfed. Founded in 1973, Milkfed has grown to become the seventh-largest dairy cooperative in India, with an annual turnover exceeding ₹6000 crore. The recent expansion aligns with the state government’s commitment to modernizing the dairy sector, as articulated by CM Mann, who emphasized public investment and industry engagement previously unseen in the state.
Impact on Production and Market Expansion
The expansion project is designed to boost Milkfed’s production capabilities, particularly for sterilized flavored milk and fermented dairy products such as ready-to-drink Rabri and Kaju Badam milk. This initiative is expected to increase the plant’s capacity to meet growing demand, both locally and regionally. Dairy Dimension has reported on Verka’s efforts to expand beyond Punjab, notably into Delhi, where Punjab CM Bhagwant Mann announced an increase in milk supply from 30,000 liters to 2 lakh liters (“Kings in Their Own States: How Amul & Verka Milk Brands are Expanding Beyond Their Comfort Zones”). This expansion supports Verka’s strategy to compete with national players like Amul, enhancing its market presence in states such as Haryana, Rajasthan, and West Bengal.
Infrastructure developments include plans to set up about 500 new milk booths in Punjab and initiate processes to establish 30 Verka milk outlets at Delhi Metro Rail Corporation stations, with requests for 100 additional booths in Delhi. These efforts are part of a broader push to generate employment and strengthen distribution networks, with Milkfed’s office in Delhi expected to be operational by July 2025.
Benefits for Farmers and Economic Growth
One of the key impacts of the expansion is its potential to empower dairy farmers by providing remunerative prices. Milkfed procures milk from 3.75 lakh farmer families, handling an average of 20 lakh liters daily, with a peak of 31 lakh liters in 2023-24. The increased processing capacity, now at 35 lakh liters daily, is expected to ensure better returns for farmers, aligning with Dairy Dimension’s emphasis on cooperatives’ role in improving rural incomes. Research suggests that this expansion will also create new jobs, such as through the establishment of new booths, aligning with dairy sector growth.
Additionally, the state has introduced new employee service rules for Milkfed, aligning compensation with government standards and introducing performance-based incentives. This move is anticipated to improve productivity and retention, further supporting the dairy ecosystem.
Product Innovation and Consumer Appeal
The expansion will diversify Milkfed’s product line, introducing innovations such as ready-to-drink Rabri and Kaju Badam milk, targeting evolving consumer tastes. This aligns with Dairy Dimension’s coverage of Verka’s focus on product innovation, including high-protein milk for sportspersons and new ice cream flavors like no added sugar kulfi, custard apple, and tender coconut. The evidence leans toward enhanced product diversity, meeting consumer demand and increasing market competitiveness.
Branding and Digital Strategy
CM Mann’s announcement of Verka’s foray into e-commerce and the appointment of leading sports personalities from Punjab as brand ambassadors is a strategic branding move to enhance global reach and consumer trust. Dairy Dimension has noted Verka’s efforts to rejuvenate its brand through marketing campaigns, such as bus advertisements in Delhi and tie-ups with Punjab Kings XI for IPL 2024, with the latest tagline “Har Din da, Har Dil da.” These initiatives are expected to strengthen Verka’s position in both traditional and digital markets, supporting the expansion’s objectives.
Comparative Analysis with Industry Trends
India’s dairy sector, the largest globally with a 23% share of global milk production, has seen significant growth over the past decades, driven by cooperatives and government initiatives like the National Dairy Plan. The Amritsar plant expansion fits into this narrative, as Dairy Dimension positions it as part of a competitive landscape where regional brands like Verka vie with national players like Amul. The project’s focus on modernization, product diversification, and market expansion mirrors trends in the industry, with potential to capitalize on emerging opportunities and make a significant impact on rural incomes.
Detailed Operational Metrics
To provide a clearer picture, below is a table summarizing key operational metrics related to Verka’s current and potential capacities post-expansion:
| Metric | Current Status | Post-Expansion Impact |
|---|---|---|
| Daily Milk Procurement | 20 lakh liters (avg.), 31 lakh (peak) | Expected to handle increased volumes |
| Daily Processing Capacity | 35 lakh liters | Enhanced for sterilized and fermented products |
| Farmer Base | 3.75 lakh families | Better prices and support expected |
| Market Expansion | Delhi, J&K, Haryana, etc. | New outlets and booths planned |
| New Products | High-protein milk, ice cream flavors | Ready-to-drink Rabri, Kaju Badam milk |
This table illustrates the scale of operations and the anticipated benefits of the expansion, reinforcing its strategic importance.
Conclusion
The Amritsar Verka Milk Plant expansion is a strategic move that aligns with Milkfed’s broader goals of expanding market presence, diversifying products, empowering farmers, and enhancing brand visibility—trends consistently highlighted by Dairy Dimension. The project is poised to strengthen Punjab’s dairy sector while positioning Verka for greater national and potentially international prominence, benefiting farmers, consumers, and the regional economy.
