Mother Dairy plans to invest Rs 600 Crore in new processing plants

INDIA – Mother Dairy, a leading dairy and food company in India, has announced plans to invest approximately Rs 600 crore to establish two new fruit and vegetable processing plants in Gujarat and Andhra Pradesh. 

This move aims to strengthen the company’s presence in the horticulture sector and meet growing consumer demand for processed produce under its popular Safal brand.

According to reports, the company will allocate over Rs 400 crore for a plant in Itola, near Baroda in Gujarat, with construction expected to be completed within two years. 

The second facility, planned for Kuppam in Andhra Pradesh, will see an investment of Rs 150-200 crore. 

Manish Bandlish, Managing Director of Mother Dairy, told PTI, “We are yet to get the land from the government for the Andhra Pradesh plant. Once that’s secured, we’ll start working on the investment.” 

He added that a Detailed Project Report (DPR) is still in the works for the Kuppam facility.

Mother Dairy currently operates three fruit and vegetable processing plants under the Safal brand in Ranchi (Jharkhand), Bengaluru (Karnataka), and Mangolpuri (Delhi), collectively handling two lakh tonnes of produce annually. 

The new plants are expected to boost this capacity significantly, catering to both domestic and export markets. 

The Gujarat and Andhra Pradesh facilities will produce pulp and concentrates from fruits like mango, guava, and pomegranate, as well as frozen products such as French fries.

Reported by industry sources, Mother Dairy’s expansion aligns with its broader strategy to scale up operations. 

The company is also constructing a milk and dairy processing plant in Nagpur, Maharashtra, with an investment exceeding Rs 500 crore, set to begin operations by 2026. 

This facility will serve markets in central and southern India, further diversifying the company’s footprint beyond its stronghold in Delhi-NCR.

In addition to its horticulture and dairy initiatives, Mother Dairy recently launched an idli-dosa batter in the Delhi-NCR market, which has received a positive response. 

“It’s been very well received by consumers. We’ve already hit one tonne per day,” Bandlish said. 

The company plans to decide in April whether to roll out the product fully, which would require an additional Rs 5-10 crore investment.

Mother Dairy aims to achieve a turnover of Rs 17,500 crore in the 2024-25 fiscal year, a 15-16% increase from Rs 15,000 crore the previous year. 

As a subsidiary of the National Dairy Development Board, the company continues to expand its portfolio, which includes dairy, edible oils under the Dhara brand, and fresh and frozen produce under Safal, positioning itself as a key player in India’s food processing industry.