Mother Dairy is contemplating the establishment of a new facility in Maharashtra, earmarking an investment of approximately INR 500 crore for the production of milk and value-added dairy products. This initiative aligns with the company’s overarching investment strategy, which encompasses an outlay of around INR 700 crore in the coming years.
Mother Dairy, a prominent player in the dairy industry, operates as a fully owned subsidiary of the National Dairy Development Board. In addition to its extensive range of milk and dairy products, Mother Dairy has gained recognition for its Dhara brand of edible oils. Furthermore, under the Safal brand, the company offers a diverse array of products such as fresh fruits, vegetables, frozen vegetables, snacks, pulses, and concentrates, catering to a wide spectrum of consumer needs.
Manish Bandlish, Managing Director, Mother Dairy said, “We have recently got a nod from our board for investments of about INR 700 crore which will be made over the next few years.”
The company will be making significant investments to expand its manufacturing capabilities.
“We are in the advanced stages of land procurement to set up a new plant in Nagpur, Maharashtra. This plant will manufacture dairy and value-added dairy products. We will be making investments of about INR 500 crore in setting up this plant. This will become a hub for us to serve Western and Southern regions,” he added.
Last year, the company boosted its manufacturing capacity by 20-25% in the dairy and value-added dairy products segment. The upcoming plant is anticipated to provide an additional 15-20% increase in the company’s capacity within this segment.
“In the food processing segment, we are also looking at setting up a new plant in Karnataka,” Bandlish added.
During the fiscal year 2023, Mother Dairy witnessed a revenue increase of approximately 17%, reaching INR 14,500 crore.
“Last year, the growth was significant from the revenue perspective. We saw 16-17 per cent volume growth. During this fiscal, the summer was impacted due to unseasonal rains. However, post August we are seeing handsome growth rates,” he explained.
Bandlish added that post-August, the company has seen an uptick in sales even for seasonal categories such as ice creams. “In the current festival season too, one is witnessing strong consumption trends,” he added.
The company has stated that it possesses a robust lineup of innovations spanning various categories, including bakery, ice creams, paneer, and other value-added products.
“We have announced plans to launch 100 new products over the next three years and we are on track to achieve this goal,” he added.