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Utilities
In a major move to strengthen its production and distribution network, Mother Dairy has announced plans to invest between Rs 1,400 crore and Rs 1,500 crore over the next two to three years. This ambitious expansion strategy aims to significantly boost the company's production capacity, enhance its market reach, and diversify its product offerings.
The investment will not only focus on upgrading existing facilities but also include the development of three new plants located in Gujarat, Andhra Pradesh, and Maharashtra's Nagpur. The construction of the Nagpur dairy plant is already underway, indicating the company's commitment to expanding its operational footprint across India[1]. Mother Dairy currently operates 12 plants, and this expansion will provide a substantial boost to its overall production capabilities.
Mother Dairy anticipates a significant increase in revenue, projecting a 13% growth in FY25, reaching approximately Rs 17,000 crore from the previous year's Rs 15,000 crore. By FY26, the company is expected to cross the Rs 20,000 crore mark, marking a substantial increase of over 17%[1]. This growth strategy is backed by a comprehensive market approach that includes expanding distribution networks for its milk and milk products across India, complemented by its already pan-India presence of Safal and Dhara brands[2].
In response to changing consumer behavior and preferences, Mother Dairy is scaling up its direct-to-consumer (D2C) app, initially piloted in the Delhi-NCR region. This strategic move aims to leverage the growing demand for online purchases, enhancing customer convenience through slotted delivery options[2]. The app has already seen success, with online orders contributing about 5-6% of booth revenues, and the company plans to expand this feature across more locations[1].
Mother Dairy is introducing new product lines to cater to evolving consumer preferences, particularly focusing on protein-enriched dairy products. Recently, the company launched Promilk, a milk variant rich in protein, containing 40 grams of protein per liter, alongside other nutrients like vitamins A and D[1]. This move marks Mother Dairy's entry into the fast-growing protein market, aligning with consumer demand for quality and nutritious products.
The company plans to expand this "pro" range to include curd, set curd, and paneer within the next three months[3]. This strategic diversification aims to tap into the protein segment, where a significant portion of Indians fail to meet daily protein requirements[4].
In anticipation of the summer season, Mother Dairy is set to launch new summer products such as pudina chaach, jeera raita, and premium dahi. The company is optimistic about these offerings resonating with Indian consumers, particularly focusing on flavors that align with local tastes rather than adopting Western flavors[3].
Moreover, Mother Dairy aims to increase its ice cream business revenue from Rs 500 crore to Rs 650-700 crore this year[4]. This growth strategy is aligned with consumer preferences for refreshing dairy products during warmer months.
Mother Dairy operates in a competitive dairy market, with rivals like Amul also expanding their protein-enriched product lines. However, Mother Dairy's focus on affordable, daily consumption protein products differentiates it from competitors targeting specific niches like gym enthusiasts[2]. The company's extensive retail network, spanning nearly 400,000 outlets across India, provides a robust distribution advantage[1].
Mother Dairy's ambitious Rs 1,500 crore investment in capacity expansion, coupled with strategic product innovations and market outreach efforts, underscores its commitment to reinforcing its market position while addressing evolving consumer needs. As the company pushes forward with its growth plans, it is poised to emerge stronger in the competitive dairy landscape in India.
