The Kolkata-based ITC Ltd. is investing US$161.6 million into its expansion into the dairy and juice businesses planned for the first quarter of 2015. The funds will be allocated to the short term expenses of manufacturing, marketing, brand building, and distribution. The group has already invested US$40.4 million into the businesses and had acquired the B-Natural juice business for $9.7 million earlier in 2014 which is currently undergoing modernization. The group plans to release seven to eight juices, competing against PepsiCo’s Tropicana brand for share in India’s US$323.2 million juice market prior to its entry into dairy, which will involve establishing processing plants in six states, and will initially consist of a launch of ghee and milk powder products. ITC is expanding its agri-sourcing though backward integration to grow fruits and vegetables for its juice business, and has set up 261 cattle development centers across seven states, and is sourcing milk from 194 producer groups with an average procurement of 13,729 liters of milk per day.
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