Aashirvaad dairy portfolio targets rising demand for packaged milk and value-added products across Bihar, West Bengal and Jharkhand
ITC is stepping up its fresh dairy play in Eastern India under the Aashirvaad brand, with the company betting on rising demand for branded milk and value-added dairy products across Bihar, West Bengal and Jharkhand.
The company, which entered the fresh dairy segment in 2018 with Aashirvaad milk in Bihar, has since expanded into West Bengal and Jharkhand. Its portfolio now spans fresh milk, curd, paneer, lassi and Mishti Doi, with the business emerging as the second-largest dairy brand in Bihar, according to the company.
Eastern India remains a key focus for ITC as the region offers significant headroom for growth, particularly given the relatively low penetration of packaged dairy products.
“East is one of the most promising growth markets for the dairy category and will be central to our growth strategy in the coming years,” said Hemant Malik, Chief Executive Officer, Foods Division, and Executive Director, ITC, talking to media.
Branded Dairy Opportunity
In Bihar, more than 80 per cent of consumers continue to purchase loose milk, according to ITC. The company sees this as an opportunity to shift households towards packaged and value-added dairy products that offer greater consistency, quality and safety.
“In South India, consumers moved to branded curd over a decade ago, and we wanted to enable a similar transition in Bihar. With our pouch curd offerings, we are helping consumers shift to branded curd that delivers assured quality and consistency, backed by the trust of ITC,” Malik said.
The company is also looking to broaden its value-added dairy portfolio. ITC is evaluating newer and healthier dessert formats as it seeks to expand beyond products such as Mishti Doi.
According to Malik, dairy is currently among ITC’s fastest-growing categories, recording high double-digit growth.
Strengthening Regional Supply Chain
ITC currently operates dairy processing facilities at Munger, Patna, Muzaffarpur and Gaya in Bihar, Ranchi in Jharkhand, and Howrah and Bardhaman in West Bengal.
The company is also strengthening its farmer-led procurement network to support the expansion of its dairy business across the three states.
Through Project Gomukh, ITC works with more than 40,000 dairy farmers through direct milk sourcing networks. The initiative focuses on improving milk productivity and quality while supporting farmer incomes.
During the year, ITC said it supported around 33,300 dairy farmers across more than 560 villages in Bihar, West Bengal and Jharkhand through veterinary services, cattle-feed distribution, deworming drives, mastitis management and other livestock-related initiatives.
Premium And Value-Added Dairy Drive
ITC’s Aashirvaad Svasti fresh dairy portfolio maintained strong momentum in FY26, with growth supported by its premium Select milk variant and value-added categories such as curd, paneer, Mishti Doi and lassi.
The company is continuing to expand distribution across Bihar, West Bengal and Jharkhand as it seeks deeper penetration in the eastern market.
The dairy expansion is also part of ITC’s broader strategy to build the Aashirvaad brand beyond its traditional wheat-flour base. The portfolio has expanded into staples, spices, fresh foods and frozen products, with ITC targeting a doubling of consumer spends on Aashirvaad to more than Rs 20,000 crore over the next five years.
For ITC, the eastern dairy market therefore represents both a regional expansion opportunity and a broader shift in consumption from loose dairy products towards branded, packaged and value-added offerings.
