Mother Dairy gears up for major expansion invests 750 cr

Mother Dairy is gearing up for significant expansions in response to the increasing demand for its products. With an investment of Rs 750 crore, the company plans to establish two new processing plants focusing on dairy, fruits, and vegetables.

The investment entails Rs 650 crore allocated for the construction of two processing plants to cater to the rising consumer demand for milk, fruits, and vegetables. An additional Rs 100 crore will be utilized to enhance the capacities of existing plants.

The Managing Director of Mother Dairy Fruits and Vegetables Pvt Ltd, Manish Bandlish, emphasized the company's commitment to expanding distribution and reaching consumers by earmarking this substantial capital expenditure.

One of the notable investments is the construction of a large dairy plant in Nagpur, Maharashtra, with an estimated investment of Rs 525 crore. This greenfield plant is expected to have a processing capacity of 6 lakh liters of milk per day, expandable up to 10 lakh liters daily. It will primarily serve markets in the central and southern regions of India.

Additionally, Mother Dairy plans to commission a new fruit processing plant in Karnataka, investing over Rs 125 crore under its Safal brand. These strategic investments aim to bolster the company's production capabilities and meet the growing demand for its products.

The construction of these new facilities is anticipated to be completed within approximately two years. Moreover, Mother Dairy is also focusing on strengthening its existing capacities, allocating around Rs 100 crore for this purpose.

Currently, Mother Dairy operates nine company-owned processing plants for dairy products, with a total milk processing capacity exceeding 50 lakh liters per day. The company also utilizes third-party facilities for processing. In the horticulture segment, Mother Dairy operates four plants, while it collaborates with 15 associated plants for edible oils manufacturing.

Despite challenges such as a subdued summer season and deflation in the edible oil sector, Mother Dairy aims for a moderate growth rate of around 7-8% in volume terms for the fiscal year 2023-24. With a turnover of approximately Rs 14,500 crore in the previous fiscal year, the company remains a significant player in the dairy and processed foods market.

Established in 1974 under the 'Operation Flood' initiative, Mother Dairy has evolved into a wholly-owned subsidiary of the National Dairy Development Board (NDDB), contributing significantly to India's dairy industry's growth and self-sufficiency.