Mother Dairy aims to up FY25 revenue by at least 10% on summers, festivals

It currently has a network of nine own dairy plants and four Safal plants

Mother Dairy aims to increase its revenue by at least 10 per cent in the current financial year (2024-25), driven by strong summer demand and expectations of robust sales during the festival season.

The dairy giant, which holds a dominant position in New Delhi and the National Capital Region (NCR), also plans to expand its presence in other markets.

“Summer has been good, and most of our summer categories have performed exceptionally well. We have also increased some of our capacities and expect to see healthy growth across all three sub-brands (Dairy, Dhara, and Safal),” Manish Bandlish, managing director at Mother Dairy Fruit & Vegetable, told Business Standard in an interview.

Bandlish noted that the company has seen consistent growth over the past three years, with revenue rising from Rs 10,500 crore to Rs 15,000 crore in 2023-24.

Recently, Mother Dairy has entered Rajasthan and is focusing on expanding its footprint in the state.

“We are extending our reach to Uttar Pradesh and other parts of North India. Also, we plan to expand into some regions of the South, particularly Andhra Pradesh,” Bandlish said.

The company operates a plant in Andhra Pradesh, which will support its regional expansion. It also aims to enhance its presence in Hyderabad, Mumbai, and Kolkata, with plans to grow its ice cream portfolio there.

Founded in 1974 as a subsidiary of the National Dairy Development Board, Mother Dairy initially focused on supplying milk to urban areas. Today, it offers over 500 stock-keeping units in dairy, horticulture, and edible oils.

Mother Dairy operates nine dairy plants and four Safal plants. It is also constructing a new plant in North India to support growth in the central region, leveraging its efficient milk collection system.

“We aim to increase our non-Delhi-NCR market share from the current 20-25 per cent to 30-35 per cent over the next three to four years," Bandlish said.

The company is investing over Rs 500 crore in a new plant in Nagpur, which will have a capacity of 600,000 litres per day, expandable to 1 million litres. This facility will produce ice creams, as well as short-shelf-life products like chaas (buttermilk) and curd. The plant is expected to be operational within 18-24 months.

Mother Dairy is also establishing a plant in Itola, Gujarat for Safal and is planning another plant in South India for Safal.

The majority of Mother Dairy’s revenue comes from its dairy business, followed by edible oils and Safal, which retails fresh fruit and vegetables.