Swiss dairy major Nestle's Indian subsidiary, Nestle India, is learnt to be in talks to set up a dairy plant in Baramati, Maharashtra, in an apparent attempt to grow in one of India's hottest milk markets.
The Rs. 7,490-crore company, which has grown at nearly 20% each year between 2002 and 2006, aims to become a Rs. 25,000-crore dairy major in the next ten years.
The company, however, refused to confirm this development, saying it merely has a sourcing alliance with another dairy firm in the region.
"In order to service the growing demand for our nutrition and milk products, we are continuously working with dairy suppliers to develop and source high-quality ingredients. Nestle India is not setting up any factory in Baramati but essentially has an ingredient sourcing arrangement with a local company. More specific details are being worked on," said a Nestle India spokesperson.
However, according to local sources, the company has bid for a piece of land in Baramati for the purpose of setting up a plant there.
Nestle India has set aside about R900 crore for capacity expansion.
As of now, the company has seven manufacturing units across India and is also looking to set up a plant in the north-east. However, it has not provided a timeline for its north-east foray. The company is learnt to have shortlisted four sites in the region.
Its factory at Tahilwal in Himachal Pradesh is expected to be commissioned next year.