Mother Dairy Achieves Healthy Turnover Growth, Focusing Beyond Delhi-NCR Markets

Mother Dairy Fruit and Vegetables Private Limited, a subsidiary of the National Dairy Development Board (NDDB), has reported better turnover growth in the current financial year up to November than the previous year. The company is focusing on markets outside Delhi-NCR and expanding its product portfolio. It is increasing its range of value-added dairy products and establishing two new Safal plants for fruit and vegetable processing—one in Gujarat and another in a mango-producing southern state.

In an exclusive conversation with Rural Voice, Mother Dairy Managing Director Manish Bandlish shared the company’s progress details. He revealed that the Safal plant in Itala, near Anand, Gujarat, will produce items like potato French fries and flakes. The second plant, dedicated to mango processing, will be set up in Andhra Pradesh or Karnataka. Additionally, production of various butter variants is expected to begin this December at a new plant in Junagadh, Gujarat.

Mother Dairy's milk sales currently stand at approximately 47 to 48 lakh litres per day, with 36 to 37 lakh litres sold in the Delhi-NCR market. The company is also expanding into Rajasthan, Uttar Pradesh, and Bihar. The share of value-added products in its portfolio has risen from 22–23% to 28–30%, with significant growth in paneer sales (40%) and probiotic tadka buttermilk (30%). Ice cream sales are also growing, though chocolate-flavoured ice creams, accounting for 30% of sales, have been impacted by rising cocoa powder costs.

Manish highlighted that about 97% of the milk procured by Mother Dairy is sourced directly from farmers or Farmer Producer Organizations (FPOs). Of this, 15 lakh litres are procured from Uttar Pradesh and another 12–15 lakh litres from Rajasthan. He noted price stability in milk procurement this year.

The shift from open to packaged milk is accelerating in eastern Uttar Pradesh and Bihar, with a 25% annual increase in customers opting for packaged milk. However, the flush season has been delayed this year, and its impact on milk supply will become clearer in the next 15 days.

NDDB has also been tasked with revitalizing Milk Cooperative Federations in states like Jharkhand, Maharashtra, and Madhya Pradesh. Manish stated that efforts to promote the federations' brands are showing success. Meanwhile, Mother Dairy continues to expand its operations in Maharashtra, Punjab, Rajasthan, Gujarat, and other states. This growth trajectory reflects Mother Dairy’s strategic focus on diversification, market penetration, and enhancing value for consumers and farmers alike.