New Delhi: Mother Dairy, responding to escalating consumer demand, announces a significant investment of Rs 750 crore to establish two state-of-the-art plants dedicated to dairy and fruits & vegetables processing. This move underscores the brand’s commitment to enhancing its production capacities and distribution network.
According to Manish Bandlish, MD of Mother Dairy Fruits and Vegetables Pvt Ltd, “In our endeavor 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.”
The investment includes Rs 650 crore allocated for two new processing plants and an additional Rs 100 crore for expanding existing facilities. Notably, Mother Dairy is set to establish a significant dairy plant in Nagpur, Maharashtra, with an investment of approximately Rs 525 crore. This greenfield plant, designed with a processing capacity of 6 lakh liters of milk per day (expandable to 10 lakh liters per day), will cater to markets in central and southern regions.
Furthermore, Mother Dairy plans to commission a new fruit processing plant in Karnataka, investing over Rs 125 crore under its renowned Safal brand. Both projects are slated for completion within a two-year timeline.
Bandlish also highlighted the brand’s commitment to reinforcing capacities in existing facilities, with an outlay of approximately Rs 100 crore.
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Presently, Mother Dairy operates nine company-owned processing plants for dairy, boasting a collective milk processing capacity exceeding 50 lakh liters per day. Additionally, it utilizes third-party facilities for processing. For the horticulture segment, the company operates four plants, while it collaborates with 15 associated plants for edible oils.
Despite facing challenges such as a subdued summer season and deflation in the edible oil sector, Mother Dairy anticipates a moderate growth rate of around 7-8 per cent in volume terms for the fiscal year 2023-24, reflecting its resilience and adaptability.
Established in 1974 under the ‘Operation Flood’ initiative, Mother Dairy, a wholly-owned subsidiary of the National Dairy Development Board (NDDB), has played a pivotal role in India’s dairy landscape. With a diverse product portfolio encompassing milk, milk products, edible oils, and fresh fruits & vegetables, the brand continues to uphold its commitment to quality and innovation, serving millions across the nation through its extensive retail network.
