INDIA – Mother Dairy has announced a turnaround in its financial performance for the fiscal year 2024, recording a 180% increase in net profit to Rs 106 crore, compared to a net loss of Rs 133 crore in FY23.
The dairy firm attributes this impressive recovery to lower procurement prices, which helped boost profitability.
According to business intelligence firm Tofler, the company also saw a modest 3% increase in revenue, which reached Rs 15,037 crore during the same period.
The company’s ice cream business was a standout performer, crossing the Rs 500-crore mark in revenue.
Ice cream has now become the second-largest category in Mother Dairy’s portfolio, following curd, as per the company’s filings with the Registrar of Companies (RoC).
The company’s milk and dairy products segment remained its primary revenue driver, contributing 72.47% to total revenue.
In its filings, Mother Dairy detailed a successful integration of its milk and dairy products Strategic Business Unit (SBU), a move that helped strengthen synergies and enhance growth.
The dairy business posted a turnover of Rs 11,505 crore, reflecting a 10% year-on-year growth. The flagship product, cow milk, continued its strong growth trajectory, achieving a 15% increase, while curd saw a notable growth of 22%.
The company also expanded its range of value-added products, with more than 20 new launches, including ready-to-eat custards, cold coffee, and cookies.
These innovations have contributed to the company’s diversified product portfolio, positioning it for future growth in the competitive dairy sector.
In a strategic business move, Mother Dairy has signed an exclusive distribution agreement with Bharat Organics to bring organic staples to the Delhi-NCR market.
Bharat Organics, a brand owned by the National Cooperative Organics (NCOL), focuses on promoting organic farming through a cooperative model and is supported by prominent organizations like the NDDB, NAFED, and GCMMF.
The partnership aims to strengthen the distribution of certified organic produce, leveraging Mother Dairy’s extensive distribution network.
Manish Bandlish, Managing Director of Mother Dairy, highlighted the partnership’s potential, stating, “By combining NCOL’s expertise in organic farming with our extensive distribution network and deep consumer trust, we are uniquely positioned to bridge the gap between premium organic products and affordability.”
Under this agreement, Bharat Organics’ products will be available at 300 Safal stores and approximately 10,000 general trade outlets across Delhi-NCR, in addition to being offered through modern trade and e-commerce platforms.
The range will undergo rigorous testing for pesticide residues, ensuring high-quality standards while supporting sustainable farming practices.
According to Vipul Mittal, Managing Director of NCOL, the vision for Bharat Organics is to offer an entire basket of organic staples while ensuring fair returns for organic farmers.
The collaboration is seen as a significant step towards creating a healthier and more sustainable future for consumers and farmers alike.
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