Lucknow: Uttar Pradesh’s food processing sector is on the cusp of a major industrial expansion, with the Yogi Adityanath government issuing Letters of Comfort (LoC) to 40 new projects across the state — more than 21 of them concentrated in the Purvanchal (eastern) and Madhyanchal (central) regions.
Major names like Varun Beverages, Amul, ITC, Balaji Wafers and Haldiram’s are among the brands placing their bets on UP, setting up or expanding operations in districts including Varanasi, Prayagraj, Gorakhpur, Hardoi and Sitapur.
A Wider Industrial Footprint
What stands out this time is that investment isn’t clustering around the usual industrial hubs. From Prayagraj, Varanasi, Gorakhpur, Ayodhya, Amethi and Deoria to Hardoi, Sitapur and Kanpur Dehat, big investors are setting up shop — or scaling up — across a much broader map. Officials say this is giving rise to a fresh industrial network spanning food processing, beverages, dairy and agro-based manufacturing across eastern and central UP.
Purvanchal: 10 Projects Taking Shape
Ten food processing projects have been identified across Purvanchal, spread over Prayagraj, Amethi, Varanasi, Gorakhpur, Ayodhya, Barabanki and Deoria. Varun Beverages is expanding its beverage manufacturing footprint with projects in Prayagraj, Amethi and Gorakhpur, while CP Milk and Food Products is growing its presence in Gorakhpur. In Varanasi, a dairy project by the Banaskantha District Cooperative Milk Producers’ Union (Amul) marks another significant addition. Rasik Refreshment and Forever Distillery are also expanding their industrial activity in the region.
Officials believe this expansion will strengthen the link between farmers, local supply chains, logistics and organised manufacturing — boosting value addition of agricultural produce closer to where it’s grown.
Madhyanchal: Hardoi Emerges as a New Food Processing Hub
Central UP is seeing a parallel growth story, with 12 projects taking root and Hardoi fast emerging as a key hub. Big players like Varun Beverages, ITC, Balaji Wafers and Haldiram’s are setting up projects there, reshaping the district’s industrial landscape. In Kanpur Dehat, HL Agro Products is expanding operations, while Sitapur is drawing investment from Radico Khaitan and Dalmia Sugar Mills. Other companies with projects in the region include United Breweries, Globus Spirits, Neel Shree Sugar and RSPL Limited.
Tailored Incentives for Investors
The state government says the LoCs reflect its investor-first industrial policy, offering companies customised incentives and policy support based on their specific needs — whether they’re setting up new units or expanding and diversifying existing ones. Officials point to UP’s vast agricultural base as a natural advantage for the food processing industry, ensuring a steady supply of raw material, while improving roads, expressways and industrial infrastructure are opening up further opportunities for investors.
Farming, Value Addition and Jobs — The Bigger Picture
The state’s broader strategy is to link agricultural production with food processing and organised manufacturing, building district-level industrial ecosystems across UP. The goal: more local value addition for farm produce, new market access for farmers, and job creation at the local level. With major brands deepening their presence across Purvanchal and Madhyanchal, officials say the state’s industrial growth is clearly moving beyond its traditional strongholds — investment they hope will strengthen the state economy and support Chief Minister Yogi Adityanath’s target of turning Uttar Pradesh into a trillion-dollar economy.
