Mother Dairy Aims to Double Revenue with Major Expansion Plans
Mother Dairy, a prominent Indian processing company, is set on a path to double its revenue from ₹20,300 crore to over ₹40,000 crore in the next three to four years. This ambitious goal is supported by a significant capital expenditure of ₹2,000 crore earmarked for expanding manufacturing capabilities and diversifying product lines.
The company has been actively expanding its infrastructure with a focus on establishing new manufacturing hubs across 16 states in India. A key part of this expansion is a nearly completed ₹600 crore milk processing facility in Nagpur, along with new plants in Bihar and Punjab. Additionally, existing facilities in Tirupati are being expanded, and the recently acquired Narmul cooperative plant in Hyderabad is undergoing refurbishment to strengthen Mother Dairy's presence in southern and eastern regions.
Mother Dairy is shifting its focus towards high-margin Value-Added Products (VAP) to enhance enterprise margins. Last year, the company reported a 17 percent growth rate, driven by a 30 percent increase in paneer volumes and a 25 percent growth in curd sales. The company is also scaling up production of products like ready-to-use Raita, flavored milk, and premium curd, with plans for a nationwide rollout once manufacturing capacities are in place.
The company is leveraging quick-commerce (q-comm) delivery networks to transform its retail strategy. Currently, quick-commerce contributes 7 to 8 percent of Mother Dairy's total turnover and 25 percent of its high-value dairy products portfolio. Under the leadership of Managing Director Jayatheertha Chary, the brand aims to double the contribution of quick-commerce channels in the next two years, supported by increased digital and social media marketing efforts.
In the face of rising costs, including an 8 percent increase in farmgate milk procurement prices and a significant rise in packaging material costs, Mother Dairy has limited consumer price hikes to 3 to 3.5 percent. Despite these challenges, the company routes 80 to 85 percent of sales back to its rural farming partners, maintaining a focus on affordability and support for its supply chain.
Beyond its core dairy operations, Mother Dairy is also focusing on expanding its Safal fresh produce and Dhara edible oil segments. The Safal division plans to increase its fruit pulp operations significantly, supported by a new facility in Kuppam, Andhra Pradesh, and a French Fries plant in Gujarat. Meanwhile, the Dhara brand is enhancing domestic food security by sourcing a majority of its oilseed portfolio from local farmers and preparing to expand exports to the UAE and GCC regions.
