Mother Dairy, one of the biggest dairy firms and the leading milk supplier in Delhi-NCR, has decided not to implement the usual price increase at the onset of summer, when procurement costs spike. MD Jayatheertha Chary says the company has been able to absorb all the costs of milk procurement.
In an interview with Sandip Das, he talks about various aspects of the business and its target of achieving a record turnover of Rs 24,000 crore in 2026-27. The company has achieved a 17% year-on-year growth in sales to Rs 20,300 crore in FY26 on better demand for milk products and cooking oils. Excerpts:
Do you foresee any increase in retail milk prices or in rates given to farmers for procurement?
Milk prices generally increase during summer because of lower production prospects. We have sufficient farmer linkages. We source milk from 100,000 farmers through 23 milk producer organisations across 16 states. We do not foresee any milk shortage in the summer and we will be able to supply whatever quantities consumers want.
Prices paid to farmers will definitely increase which is a normal practice in summer months. So far we have not increased retail milk prices (the company last increased milk price by Rs 2/litre in April 2025) as we have been able to absorb all the costs of milk procurement.
We are not short on any commodities including skimmed milk powder (which is reconstituted to produce liquid milk).
How do you assess the demand scenario for milk and other products in the current financial year?
We have achieved a 17% year-on-year growth in sales to Rs 20,300 crore in FY26 on better demand for milk products and cooking oils. The dairy vertical contributed over Rs 15,000 crore while edible oils (Dhara) and Safal outlets accounted for around Rs 4,700 crore. We expect our sales to go up by at least 30% across product categories in the current financial year.
We are introducing several products with a focus on wellness, and growth is coming from e-commerce as well. In FY26, we procured 7 million litres of milk daily, and distributed 3.5 million litres every day in Delhi-NCR alone. This will be enhanced to 8.5-9 million litres daily as we aim to achieve sales of over Rs 24,000 crore in FY27.
We are expanding our distribution network and will be adding 100,000 outlets to the existing 400,000 across 16 states.
How much investment will you be making in the current financial year to meet the rising demand of dairy products?
Our board has approved Rs 2,000 crore of investments for setting up a french fries plant in Gujarat and a multi-fruit and -vegetable processing unit in Andhra Pradesh where we can process mango pulp, guava, banana, papaya and tomato. These are under various stages of implementation.
What is your strategy on expanding the edible oil business under the Dhara brand?
Currently Dhara is an over Rs 4,000-crore brand. In the last financial year, we grew by 25% year-on-year. Our focus in promoting Dhara is indigenous oils such as groundnut and mustard. We are helping farmers and consumers by providing them with region-specific cooking oils.
The National Dairy Development Board (NDDB) has started research on increasing yield of mustard variants. We are working in Assam where farmers are facing a lack of moisture content in mustard. We have conducted a project for dry mustard across Assam.
What is your geographical expansion plan?
We have shifted our focus from being a north India-centric organisation to having footprints across the country. We now have national aspirations. We want to be a truly national brand. So, we have expanded beyond Delhi-NCR.
In the last two years we have expanded our presence in Rajasthan, Gujarat, Bihar, and West Bengal.
We are seeing phenomenal growth in these states. Our products are being accepted across these states. We are growing the highest in those states where we have launched our products. The expansion drive will continue.