The State Cartel operates primarily in Michoacana, Mexico. It draws its income from diverse sources including charging other organizations for the transport of drugs through its territory, local drug dealing, and kidnapping, the PGR notes.
The State first formed as a faction within the now defunct Familia Michoacana cartel, Insight Crime notes.
The fall of the Familia previously gave rise to a number of gangs, including the Knights Templar cartel.