The plant, which will have an initial capacity of five lakh ltr a day, will be located in a special food processing zone in the state.
Sabar Dairy, a key constituent of Amul’s Federation of cooperatives, has signed an agreement with the Telangana government to set up the facility.
The Gujarat-based dairy cooperative will invest Rs 300 crore in Phase-I and the remaining Rs 200 crore in Phase-II. The processing facility will have a provision to expand the capacity to 10 lakh ltr a day.
The plant is expected to provide direct employment to over 500 people and support several ancillary industries.
Besides producing packaged milk, the facility will manufacture value-added dairy products such as curd, buttermilk, lassi, yogurt, paneer and sweets.