Mother Dairy to Establish Additional Plants Catering to Rising Consumer Demand

Mother Dairy, a prominent milk supplier in Delhi-NCR, is gearing up for expansion to meet the rising consumer demand by investing Rs 650 crore to set up two new plants for processing milk, fruits, and vegetables. Additionally, the company plans to invest Rs 100 crore to expand the capacities of its existing plants.

The investment aims to enhance Mother Dairy's distribution and reach to consumers across key locations. One of the major projects includes setting up a large dairy plant in Nagpur, Maharashtra, with an investment of approximately Rs 525 crore. This greenfield plant will have a processing capacity of 6 lakh litres of milk per day, expandable up to 10 lakh litres per day, catering to markets in central and southern regions.

Furthermore, Mother Dairy plans to commission a new fruit processing plant in Karnataka under its Safal brand, with an investment exceeding Rs 125 crore. These new plants are expected to be operational within the next two years.

In addition to these greenfield projects, the company is also strengthening its capacities in existing facilities with an investment of around Rs 100 crore. Mother Dairy currently operates nine company-owned processing plants for dairy and four plants for horticulture (fruits and vegetables). It also collaborates with third-party facilities for processing.

Despite facing challenges such as subdued summer season and deflation in the edible oil sector, Mother Dairy aims to achieve a moderate growth rate of around 7-8% in volume terms for the fiscal year 2023-24. The company's turnover for the fiscal year 2022-23 stood at around Rs 14,500 crore.

Established in 1974 under the initiative of 'Operation Flood', Mother Dairy is now a wholly-owned subsidiary of the National Dairy Development Board (NDDB). It plays a significant role in manufacturing, marketing, and selling milk and milk products, including cultured products, ice creams, paneer, and ghee, under the 'Mother Dairy' brand.