Mother Dairy is looking at setting up a new plant in Maharashtra with an investment of about ₹500 crore for milk and value-added dairy products. The company said this is part of its broader investment plan of about ₹700 crore over the next few years.
Mother Dairy, which is among the leading dairy players in the country, is a wholly-owned subsidiary of the National Dairy Development Board. Besides milk and milk-based products, it is also known for its edible oil brand Dhara while it sells fresh fruits and vegetables, frozen vegetables and snacks, pulses and concentrates among others under the brand Safal.
Manish Bandlish, Managing Director, Mother Dairy told businessline, “ We have recently got a nod from our board for investments of about ₹700 crore which will be made over the next few years.”
The company will be investing strongly in growing its manufacturing footprint.“ We are in the advanced stages of land procurement to set up a new plant in Nagpur, Maharashtra. This plant will manufacture dairy and value-added dairy products. We will be making investments of about ₹500 crore in setting up this plant. This will become a hub for us to serve Western and Southern regions,” he added.
The company has already ramped up manufacturing capacity by 20-25 per cent last year in the dairy and value-added dairy products segment. The new plant is expected to further increase the company’s capacity space by 15-20 per cent in this segment. “ In the food processing segment, we are also looking at setting up a new plant in Karnataka,” Bandlish added.
In FY 23, Mother Dairy’s revenue grew by about 17 per cent to ₹14,500 crore. “ Last year, the growth was significant from the revenue perspective. We saw 16-17 per cent volume growth. During this fiscal, the summer was impacted due to unseasonal rains. However, post August we are seeing handsome growth rates,” he explained.
Bandlish added that post-August, the company has seen an uptick in sales even for seasonal categories such as ice creams. “ In the current festival season too, one is witnessing strong consumption trends,” he added.
The company said it has a strong pipeline of innovations across categories such as bakery, ice creams, paneer and other value-added products. “ We have announced plans to launch 100 new products over the next three years and we are on track to achieve this goal,” he added.