INDIA – Mother Dairy, a prominent milk supplier in Delhi-NCR, is set to expand with an investment of US$90.4M (₹750 crore) to establish two new processing plants, alongside augmenting the capacities of its existing facilities, in response to escalating consumer demand.

According to the MD of Mother Dairy Fruits and Vegetables, Manish Bandlish, the company plans to allocate US$78.4 million (₹650 crore) for setting up two new plants to process milk, fruits, and vegetables, in addition to earmarking US$12 million (₹100 crore) for enhancing capacities at its current plants.

A significant portion of this investment, approximately US$63.3 million (₹525 crore), will be directed towards erecting a large-scale dairy plant in Nagpur, Maharashtra.

This greenfield project will boast a processing capacity of 6 lakh litres of milk per day initially, expandable up to 10 lakh litres daily.

Expected to serve the markets in central and southern regions, the Nagpur plant is anticipated to be operational within two years.

Furthermore, Mother Dairy intends to establish a new fruit processing facility in Karnataka with an investment exceeding US$15 million (₹125 crore) under its Safal brand. The two projects are anticipated to be completed within the same timeframe.

Simultaneously, the company plans to reinforce capacities at its existing facilities with an investment of around US$12 million (₹100 crore).

Presently, Mother Dairy operates nine company-owned dairy processing plants with a combined milk processing capacity exceeding 50 lakh litres per day, supplemented by processing at third-party facilities.

In the horticulture segment, Mother Dairy operates four proprietary plants, while it collaborates with 15 associated plants for edible oil manufacturing.

Despite facing challenges such as subdued summer demand and deflation in the edible oil sector, Mother Dairy is poised to achieve a moderate growth rate of approximately 7-8% in volume terms for the fiscal year 2023-24.

In the previous fiscal year, the company recorded a turnover of around US$1.7 billion (₹14,500 crore).

Established in 1974 under the ‘Operation Flood’ initiative to bolster India’s milk production, Mother Dairy has evolved into a wholly-owned subsidiary of the National Dairy Development Board (NDDB).

The company’s diverse product portfolio includes milk, cultured products, ice creams, paneer, and ghee under the ‘Mother Dairy’ brand, alongside edible oils under the ‘Dhara’ brand, and a range of fresh fruits & vegetables, frozen vegetables, snacks, unpolished pulses, pulps, and concentrates under the ‘Safal’ brand.

With numerous milk booths and Safal retail outlets in Delhi-NCR, Mother Dairy continues to be a pivotal player in the Indian dairy and agriculture sector, selling over 35 lakh litres of fresh milk daily.


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