Mother Dairy is gearing up for a significant expansion, planning to invest between Rs 1,400 crore and Rs 1,500 crore to enhance its production capabilities in the next two to three years, as revealed by Managing Director Manish Bandlish. The dairy giant currently operates 12 production facilities and is set to establish three new plants in Gujarat, Andhra Pradesh, and Nagpur in Maharashtra.
Expansion Plans for New Plants
The construction of the new dairy facility in Nagpur has already commenced, marking a critical step in Mother Dairy’s growth strategy. This expansion is expected to bolster the company’s production capacity significantly.
- New plants: Gujarat, Andhra Pradesh, Nagpur
- Current facilities: 12 plants
Revenue Growth Expectations
Mother Dairy anticipates a revenue surge of approximately 13% in FY25, projecting an increase from Rs 15,000 crore to Rs 17,000 crore. By FY26, the revenue is expected to reach around Rs 20,000 crore, demonstrating a remarkable growth rate of over 17%.
Dominating the Dairy Market
As a wholly owned subsidiary of the National Dairy Development Board, Mother Dairy primarily serves the Delhi-NCR region, which accounts for more than 65% of its total sales. The company has also made strides into other significant markets such as Mumbai and Kolkata, with its products available in nearly 400,000 retail outlets nationwide.
- Market Coverage: 65% sales from Delhi-NCR
- Retail Outlets: Approximately 400,000 across India
Diverse Business Ventures
Mother Dairy operates three main sectors: dairy products, the Safal food and utilities brand, and Dhara edible oils. The company’s primary sales channel is general trade, although modern trade and e-commerce contribute 8-10% to its revenue.
E-Commerce Innovations
In a bid to enhance its online sales, Mother Dairy has launched a mobile application in select areas of Delhi-NCR. This innovative app enables customers to order milk from around 50 dairy booths and non-dairy products from 35 Safal booths. Although it does not offer instant delivery, the app allows users to select convenient delivery slots.
- Online Sales Contribution: 5-6% of booth revenue
- App Functionality: Scheduled delivery slots
Additionally, the company has established a dedicated team to monitor product availability on quick commerce platforms, ensuring efficient stock management.
Summer Product Launches
With summer approaching, Mother Dairy is preparing to meet rising consumer demand, reporting a 30% increase in interest for its summer offerings. The company plans to introduce new products such as pudina chaach, jeera raita, and premium dahi in the upcoming months. Recently, they unveiled Promilk, a protein-enriched milk variant in Delhi-NCR.
Introducing Promilk
Promilk is a standout product, boasting 40 grams of protein per liter, with a 4% fat content and fortified with vitamins A and D. It will be available in 500 ml and one-liter packages, retailing at a competitive price of Rs 70, making it more affordable than similar products on the market. The initial goal is to sell 50,000 packets daily.
With these ambitious plans and new product launches, Mother Dairy is poised to strengthen its position in the dairy sector while catering to the growing needs of its consumers.
