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Dairy giant Amul on Wednesday announced setting of their largest state-of-the-art plant in Telangana with an investment of Rs 500 crore in two phases.

The plant will come up in a special food processing zone with an investment of about Rs 300 crore in first phase and Rs 200 crore in second phase. It will provide direct employment to more than 500 persons and opportunities to several ancillary industries.

This will be Amul's largest plant in south India with capacity to process 5 lakh litres per day of milk - expandable to 10 lakh litres per day - to manufacture packed milk and value added dairy products such as curd, buttermilk, lassi, yogurt, paneer, sweets etc.

An MoU in this regard was signed in the presence of Telangana's Industry Minister K.T. Rama Rao in Hyderabad.

Principal Secretary, industry and Commerce, Jayesh Ranjan and Amul's largest milk cooperatives, Sabarkantha District Cooperative Milk Producers Union Ltd - Sabar Dairy MD Babubhai M. Patel signed the MoU.

Amul will also set up its bakery production division in Telangana with a range of products such as breads, biscuits, traditional sweets, and baked snacks.

Rama Rao thanked the leadership team of Amul for deciding to set up their largest plant in Telangana. He highlighted the all round performance of the state and also mentioned about the friendly industrial policy and the existing investment ecosystem.

He said the state was experiencing a water revolution and was in the process of witnessing another white revolution (milk) with Amul entering into the state which will add strength to its milk industry.

Patel stated that Amul decided to set up their plant in Telangana after seeing the state's industrial friendly policy and investment ecosystem. "We will soon deliver 'Made in Telangana' milk products," he said.