Mother Dairy expands milk portfolio with launch of buffalo milk variant

Dairy firm Mother Dairy on Tuesday announced the launch of a buffalo milk variant in its species-based milk portfolio. The milk supplier said it expects business from the variant to grow to Rs 500 crore in the next one year.

The milk, sourced from Uttar Pradesh and Gujarat, will be available in Delhi-NCR from this week at Rs 70 per litre. The variant will later be introduced to the Uttar Pradesh, Haryana, and Maharashtra markets.

The company expects this segment to grow by 10 per cent year-on-year and achieve total volume sales of two lakh litres per day (LLPD) from the variant by March next year.

Mother Dairy Buffalo Milk offers 6.5 per cent fat content and 9 per cent SNF (Solid Not Fat), giving it a creamier texture and rich taste profile. Furthermore, the new variant will consist of A2 protein.

“Mother Dairy is the leader in the dairy industry. We have been evaluating this particular category for some time. There is a separate consumer base for buffalo milk, which is growing because a lot of people are looking at high-fat milk and its benefits,” said Manish Bandlish, managing director of Mother Dairy.

The firm also plans to increase ad spend in the coming year, close to one per cent of the total turnover. It had posted net sales of Rs 14,500 crore in the last financial year.

The company currently has no plans to expand the new variant to special product categories. The firm, which launched cow milk in 2016, added cow milk dahi to its dahi portfolio in 2018.

“Maybe it was too early for the consumer to accept that product at that point in time. And hence, we will keep evaluating this path as it develops before we take the plunge,” Bandlish told Business Standard.

However, the company has a slew of product launches lined up for the coming year. “Dairy as an industry has a bright future going forward. We are constantly trying to innovate with new categories and products. We will be launching Greek yoghurt very soon,” he said.

The ice-cream category too will see expansion with the launch of 15 new variants, including tila kulfi by March, he added.

Talking about price hikes, Bandlish said the firm has no plans to hike milk prices in the short term.