Mother Dairy targets 20% increase in turnover

Mother Dairy, a wholly-owned subsidiary of National Dairy Development Board, had reported sales of Rs 12,500 crore in 2021-22.

Mother Dairy targets 20% increase in turnover
According to industry estimates, out of around 9 million litres of milk supplied daily by organised dairy players in Delhi-NCR region, Mother Dairy and Amul have around 40% share each

Supported by a robust sales growth in milk and dairy products, Mother Dairy Fruit and Vegetable is aiming to achieve a 20% jump in sales turnover to over Rs 15,000 crore in the current fiscal, against 2021-22.

Mother Dairy, a wholly-owned subsidiary of National Dairy Development Board, had reported sales of Rs 12,500 crore in  2021-22.

According to Manish Bandlish, MD, Mother Dairy, sales growth in the current fiscal is being driven by an around 15% growth in demand for milk and dairy products, which constitute 70% of its business.

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Bandlish said ice-cream sales have also grown significantly after being adversely impacted by the pandemic in the past two years.

“There has also been a growth of around 30% in the fruits, vegetables and edible oil businesses in the current fiscal,” Bandlish told FE.

Acknowledging that the company is facing competition from e-commerce players, he said that the overall growth in fruits, vegetables and edible oil businesses has been robust.

According to industry estimates, out of around 9 million litres of milk supplied daily by organised dairy players in Delhi-NCR region, Mother Dairy and Amul (Gujarat Cooperative Milk Marketing Federation) have around 40% share each.

Mother Dairy procures milk from farmers from Uttar Pradesh, Rajasthan, Andhra Pradesh and other states.

Also Read: Milk price hike may limit drop in profitability of organised dairies: Report

Last month, Mother Dairy had increased milk prices by Rs 2/litre in Delhi-NCR because of an increase in milk procurement price from farmers because of increase in inputs costs such as animal feed cost. It also hiked milk prices by Rs 2/litre in March.

He also said that the company will consider hiking retail prices of milk after three to four months taking into consideration the rise in inputs costs such feed prices and transportation cost.

Mother Dairy has nine dairy processing plants. Along with hiring third party facilities, it has milk processing capacity of more than 5 million litres daily.

The company sells milk and milk products — ice creams, curd, paneer and ghee under the ‘Mother Dairy’ brand. It markets its edible oil under the ‘Dhara’ brand.

Mother Dairy also sells fresh vegetables, fruits, pulses and other processed foods under Safal brand mostly through around 400-odd outlets located in Delhi-NCR and 23 retail outlets in Bengaluru. The company which sells around 350 tonne of fruits and vegetables daily also supplies to the institutional clients such as parliament house, rail bhawan, premier hotels, universities. Under ‘Safal’ brand, fresh grapes, banana, gherin, onion, etc, fresh pulp and concentrate of frozen fruits and vegetables are exported to 40 countries, including the US, Europe, Russia, West Asia, Asia and Africa.

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