Mother Dairy will invest Rs 1,400 crore-Rs 1,500 crore to increase its production capacity over the next 2-3 years, managing director Manish Bandlish told FE on Wednesday.
The milk and milk products major currently has 12 plants. Apart from investing in these plants, the company is coming up with three new ones in Gujarat, Andhra Pradesh and Maharashtra’s Nagpur.
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“The construction of Nagpur dairy plant has already started,” Bandlish said.
In FY25, the company expects its revenue to increase around 13% from Rs 15,000 crore to Rs 17,000 crore. In FY26, it is likely to touch Rs 20,000 crore, increasing over 17%.
Mother Dairy is a wholly owned subsidiary of the National Dairy Development Board and supplies its products primarily in Delhi-NCR, which accounts for over 65% of its total sales.
In recent years, it has also expanded into other major cities like Mumbai and Kolkata. Its products are available on close to 400,000 retail outlets across the country.
It has three main businesses – dairy, food & utilities (Safal) and edible oil (Dhara). The main channel of the company’s sales is general trade, with modern trade and e-commerce accounting for 8-10%.
Bandlish said that to improve its online e-commerce sales, the company has launched a mobile app in parts of Delhi-NCR. This app provides delivery of milk from around 50 dairy booths and of non-dairy products from 35 Safal booths across the city.
While it does not offer instant delivery, the app works on a slotted delivery method allowing the customers to choose a time to receive the products.
“These online orders already form 5-6% of the booth’s revenue,” he said, adding that this feature is being expanded to other booths across the capital.
Moreover, to tackle the high demand on quick commerce platforms, the company has a separate team that tracks the availability of its products in dark stores.
The company is also aggressively expanding its portfolio ahead of the upcoming summers. Bandlish said that they are already witnessing a 30% jump in demand for its summer products this year and the trend is likely to continue.
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