Amul is currently the second-largest player in the ice-cream market with Hindustan Lever being the leader. Ice-creams currently contribute around Rs 125 crore to the company's total turnover.
The company has entered into a deal with the Rs 200 crore Mangalore-based Campco, a co-operative of arecanut and cocoa farmers in Karnataka and Kerala.
The alliance will give Amul access to an additional 3,000 tonnes of cocoa beans and expand its chocolate business, tripling its current capacity of 1,500 tonnes.
The total sugar-boiled confectionery market in India is estimated to be around 80,000 tonnes in volume terms and Rs 700 crore in value terms.
Nutrine is the leader in the confectionery market with a 25 per cent market share followed by EID Parry's with 23 per cent and Cadbury's with a five per cent share, analysts said.