Mother Dairy Expands Beyond Delhi-NCR, Targets National Market

Mother Dairy Fruit and Vegetable Pvt. Ltd., a major force in India's dairy industry, is shedding its Delhi-NCR-focused image and charting an ambitious path for nationwide growth. With a robust turnover of ₹17,300 crore for the financial year ending March 2025 and investment projects worth around ₹1,200 crore underway, the company is stepping into new markets across Maharashtra, Andhra Pradesh, and the eastern and southern regions, while reinforcing its stronghold in the north. Speaking to Rural Voice, Managing Director Manish Bandlish highlighted the company’s strong momentum, with milk sales growing 7%, ice cream sales up by 12%, and beverages surging by an impressive 30% last year.

Manish Bandlish underscored the growing pricing pressures in the milk sector, pointing to a ₹4-5 per liter rise in milk procurement costs over the past month. Farmers are now receiving about ₹54 per liter for buffalo milk with 6.5% fat content, while the cost to dairies has climbed to nearly ₹57 per liter. A combination of rising temperatures and the ongoing wedding season has further fueled the increase in milk prices. Prices for fat and skimmed milk powder (SMP) have also seen a sharp uptick, with fat currently priced around ₹400 per kg and SMP ranging between ₹280 and ₹290 per kg. Despite these headwinds, Bandlish reassured that Mother Dairy’s milk procurement remains strong, backed by ample stocks of fat and SMP to meet growing demand without any supply disruptions. Nevertheless, he cautioned that the dairy sector is likely to continue facing pressure from rising input costs.

Speaking about milk procurement, Bandlish revealed that Mother Dairy collects around 60 lakh liters of milk every day. As a company under the National Dairy Development Board (NDDB), Mother Dairy’s milk sourcing operations are managed by NDDB Dairy Services, which focuses on establishing and nurturing Milk Producer Companies (MPCs). Today, nearly 98% of Mother Dairy’s milk supply comes through these farmer-owned MPCs. This model not only ensures a consistent supply of high-quality milk but also guarantees better prices for farmers. Mother Dairy is currently associated with 22 MPCs, collectively representing close to 10 lakh dairy farmers.

Discussing sales trends, Bandlish highlighted robust growth in the value-added products segment, especially beverages. To keep up with surging demand, the company doubled its lassi production capacity last year. Currently, value-added products contribute 28-30% to Mother Dairy’s overall turnover, with milk continuing to account for around 70%.

On the investment front, Bandlish shared that Mother Dairy has invested ₹550 crore in its Nagpur facility. As part of a broader ₹1,200 crore capital investment plan, the company is also setting up new processing plants in Itola, Gujarat, and Kuppam, Andhra Pradesh. The Gujarat facility will produce potato French fries and other potato-based products, while the Andhra Pradesh plant will focus on processing fruit and vegetable pulp. In addition to expanding its domestic operations, Mother Dairy is strengthening its export business, supplying fruit and vegetable pulp to multiple international markets and broadening its product offerings to Gulf countries. Currently, the company exports to 35-40 countries, generating ₹150 crore in export revenue.