Mother Dairy To Invest Rs 650 Crore To Set Up Two Plants For Processing Milk, Fruits, Vegetables

Mother Dairy is set to invest Rs 650 crore in establishing two new plants for processing milk and fruits and vegetables, aiming to bolster its operations in response to growing consumer demand. As a prominent milk supplier in Delhi-NCR, It will also allocate an additional Rs 100 crore to enhance the capacities of its existing plants.

“In our endeavour to expand our distribution and reach to our consumers, we have earmarked a capital expenditure (capex) outlay of over Rs 750 crore to enhance our dairy and F&V (fruits and vegetables) processing capacities across key locations,” Mother Dairy Fruits and Vegetables Pvt Ltd MD Manish Bandlish said, PTI reported.

Mother Dairy is gearing up to inaugurate a significant dairy plant in Nagpur, Maharashtra, with an investment of approximately Rs 525 crore, Bandlish mentioned.

The greenfield plant is projected to process 6 lakh litres of milk daily, with an expandable capacity of up to 10 lakh litres per day. This upcoming facility will cater to markets in the central and southern regions.

“We also plan to commission a new fruit processing plant in Karnataka with an investment of over Rs 125 crore under our Safal brand,” added Bandlish. These two plants are slated for completion within a timeframe of about two years. “In addition to these new greenfield plants, we are also strengthening our capacities in our existing facilities with an outlay of around Rs 100 crore,” Bandlish elaborated.

At present, Mother Dairy operates nine company-owned processing plants for dairy, collectively possessing a milk processing capacity exceeding 50 lakh litres per day. Additionally, it engages in processing at third-party facilities. For the horticulture (fruits and vegetables) segment, the company possesses four plants, hile it collaborates with 15 associated plants for the production of edible oils.

Mother Dairy registered a turnover of approximately Rs 14,500 crore in the fiscal year 2022-23. Discussing the estimated turnover for this fiscal year, Bandlish remarked, “despite a challenging year amid subdued summer season last year, deflation in the edible oil sector, the company is likely to exit 2023-24 with a moderate growth rate of around 7-8 per cent in volume terms.”

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Established in 1974, Mother Dairy is now a wholly-owned subsidiary of the National Dairy Development Board (NDDB). It was founded under the ‘Operation Flood’ initiative, the world’s largest dairy development program aimed at making India self-sufficient in milk production.

Mother Dairy, a leading dairy player in India, produces, markets, and sells milk and milk products under the ‘Mother Dairy’ brand, including cultured products, ice creams, paneer, and ghee. The company also boasts a diversified portfolio encompassing edible oils under the ‘Dhara’ brand and a range of fresh fruits and vegetables, frozen vegetables and snacks, unpolished pulses, pulps and concentrates under the ‘Safal’ brand.

In the Delhi-NCR region, Mother Dairy operates numerous milk booths and Safal retail outlets. It sells more than 35 lakh litres of fresh milk (pouched and token milk) per day in Delhi-NCR.