Amul to Double Chocolate Production: Mehta Announces Expansion

Amul’s chocolate factory in Mogar, Gujarat, is undergoing a significant expansion to double its current production capacity. Jayen Mehta, Managing Director of Gujarat Cooperative Milk Marketing Federation (GCMMF), announced the development, highlighting the factory's rapid growth since Prime Minister Narendra Modi's visit in 2018, which saw a fivefold increase in capacity that was fully utilized within two years.

The expansion involves installing new machinery and is expected to be completed in the next few months. This move aims to meet the growing demand for Amul chocolates, produced exclusively at the Mogar plant, which currently has the capacity to produce 1,000 tonnes of chocolates per month. The factory complex also houses a 600-tonne-per-day take-home ration plant and a therapeutic food plant with a capacity of 600 metric tonnes.

Amul is also grappling with rising cocoa prices, a crucial ingredient in their chocolate production. Mehta pointed out that cocoa prices have surged from ₹150-200 per kilogram over the past 25 years to the current rates of ₹850-900 per kilogram. This increase in raw material costs has necessitated passing some of the burden onto consumers.

GCMMF primarily sources its cocoa from the Central ArecaNut and Cocoa Marketing and Cooperative Society (CAMPCO) in Karnataka. As CAMPCO's largest customer, Amul relies heavily on this cooperative for the cocoa used in its chocolates, ice creams, and other products. However, Mehta did not disclose the exact volume of cocoa procured.

The expansion is a strategic move to bolster Amul's production capabilities and cater to the growing market demand. As the factory upgrades its infrastructure, the cooperative aims to maintain its position as a leading player in the Indian chocolate market while navigating the challenges posed by fluctuating cocoa prices.

News by Rahul Yelligetti