Mother Dairy will invest INR 650 crore to set up two new plants for processing of milk as well as fruits and vegetables to expand its business amid rising consumer demand. Additionally, the renowned milk supplier in Delhi-NCR will invest an additional INR 100 crore to enhance the capacities of its current facilities.
“In our endeavour to expand our distribution and reach to our consumers, we have earmarked a capital expenditure (capex) outlay of over INR 750 crore to enhance our dairy and F&V (fruits and vegetables) processing capacities across key locations,” stated Manish Bandlish, Managing Director of Mother Dairy Fruits and Vegetables Pvt Ltd.
Mother Dairy is coming up with a big dairy plant in Nagpur, Maharashtra with an investment of around INR 525 crore, he said.
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The greenfield plant will have a processing capacity of 6 lakh litres of milk per day, which can be expanded up to 10 lakh litres a day.
This upcoming plant will serve the markets of central and southern regions.
“We also plan to commission a new fruit processing plant in Karnataka with an investment of over INR 125 crore under our Safal brand,” Bandlish said.
These two plants are expected to be completed in about two years.
“In addition to these new greenfield plants, we are also strengthening our capacities in our existing facilities with an outlay of around INR 100 crore,” Bandlish said.
Currently, Mother Dairy operates nine company-owned processing plants for dairy, with a total milk processing capacity of more than 50 lakh liters per day.
It also undertakes processing at third party facilities.
For the horticulture (fruits and vegetables) segment, the company has its own four plants, while for edible oils it manufactures through 15 associated plants.
Mother Dairy’s turnover in the 2022-23 fiscal stood at around INR 14,500 crore.
On the expected turnover for this fiscal, Bandlish said, “despite a challenging year amid subdued summer season last year, deflation in the edible oil sector, the company is likely to exit 2023-24 with a moderate growth rate of around 7-8 per cent in volume terms.”
Mother Dairy, established in 1974, currently operates as a wholly-owned subsidiary under the National Dairy Development Board (NDDB).
Mother Dairy was established under the initiative of ‘Operation Flood’, world’s biggest dairy development program launched to make India a milk sufficient nation.
Mother Dairy, one of the leading dairy players in India, manufactures, markets and sells milk and milk products including cultured products, ice creams, paneer, ghee, etc. under the ‘Mother Dairy’ brand.
The company also has a diversified portfolio with products in edible oils under the ‘Dhara’ brand and fresh fruits & vegetables, frozen vegetables & snacks, unpolished pulses, pulps & concentrates, etc. under the ‘Safal’ brand.
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In Delhi-NCR, it has hundreds of milk booths as well as Safal retail outlets.
Mother Dairy sells more than 35 lakh litres of fresh milk (pouched and token milk) per day in Delhi-NCR.