The value-added dairy division of Mother Dairy Fruit & Vegetable Pvt Ltd is looking to strengthen its presence in the eastern and western parts of the country even as it aims to grow its sales at a CAGR of 30 per cent over the next five years.
According to Sanjay Sharma, Business Head – Dairy Products, Mother Dairy Fruit & Vegetable, sales were muted during the peak summer months of 2020 and 2021 due to the Covid induced lockdown. However, the company, a wholly-owned subsidiary of the National Dairy Development Board (NDDB), did not see a decline in sales though there was no growth.
Sales of value-added dairy products (excluding milk) is estimated to be around Rs 1,675 crore in 2021-22, which is almost similar to the pre-pandemic levels. The company expects to clock 25 per cent growth in sales from the segment in FY-23. It plans to scale up the segment further to touch Rs 3,500 crore by FY-25. Value-added dairy products account for nearly 25 per cent of the company’s dairy business.
“We could hold on to the revenue numbers despite muted summer sales during the last two years. Though there was some growth in the eastern region, the northern region, which accounts for nearly 80 per cent of our business, was badly impacted due to the lockdown,” Sharma told newspersons post the press conference to announce its first regional mega TVC-led campaign for Mother Dairy Mishti Doi, here on Monday.
The company is looking to ramp up the distribution network, particularly in the east and west , to grow its share in these markets.
At present its value-added dairy products are available across 10 districts in West Bengal. It plans to double the count by covering 20 districts through 30,000 outlets in the next five years, from the current count of around 17,000 . Its manufacturing facility in the eastern region currently operates at around 40 per cent capacity, and this is likely to be scaled up to nearly 60 per cent during the current fiscal, backed by steady growth in demand, he said.