Mother Dairy Ventures Southward with ₹5 bln Investment in Nagpur Plant

The Nagpur plant will produce both milk and value-added dairy products, contributing to Mother Dairy's strategic expansion. The company, a wholly-owned subsidiary of the National Dairy Development Board, is making significant strides in its growth trajectory.

Manish Bandlish, Managing Director of Mother Dairy Fruit and Vegetable Pvt. Ltd., shared insights on the company's plans at the World Food India event. He stated, "We are very soon putting up our plant in Nagpur. We are in touch with the ministries. We are making a plan, and in very advanced stages of land procurement. It will be a dairy and value-added dairy plant."

Mother Dairy has also applied for the production-linked incentive scheme for food processing for the upcoming Nagpur facility. Bandlish highlighted the strategic importance of the unit, stating that it will enable Mother Dairy to dominate markets in North India for dairy, edible oil, and frozen vegetables while expanding its presence in South India.

He emphasized the southern markets' significance, noting that Mother Dairy is currently strong in the north, west (Maharashtra), and the east. The proposed Nagpur plant will serve as a hub for the company, enabling it to cater to the southern and remaining markets.

Bandlish added, "Last year we increased our manufacturing capacities almost 20-25% largely in dairy products (value-added product capacity increased significantly). We are geared up for the next season. Besides, we already got approval for ₹7 bln. crore of capex from our board recently."

Mother Dairy's diverse product portfolio includes packaged and toned milk, edible oils, fruits and vegetables, frozen vegetables, pulses, and processed foods like fruit juices and jams. The expansion aligns with the increased demand for packaged foods and beverages, a trend that has gained momentum post-pandemic.