Adversitement
Mother Dairy Announces ₹750 Crore Investment to Expand Operations
Published On : 2024-03-17T13:25:34+0530 [ IST ] |
Author : Mayur_Tembhare
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Mother Dairy, a leading milk supplier in Delhi-NCR, announces plans to invest a total of ₹750 crore to bolster its operations and meet the increasing consumer demand. The investment includes ₹650 crore for establishing two new processing plants and an additional ₹100 crore for expanding existing capacities.
According to Manish Bandlish, MD of Mother Dairy Fruits and Vegetables Pvt Ltd, the company aims to enhance its dairy and fruits and vegetables processing capacities across strategic locations. A significant portion of the investment will be directed towards setting up a major dairy plant in Nagpur, Maharashtra, with an estimated investment of ₹525 crore. This greenfield plant will have a processing capacity of 6 lakh litres of milk per day, expandable to 10 lakh litres daily, catering to markets in central and southern regions.
Additionally, Mother Dairy plans to commission a new fruit processing plant in Karnataka, investing over ₹125 crore under its Safal brand. These initiatives are expected to be completed within the next two years, further strengthening the company's production capabilities.
In addition to the new plants, Mother Dairy will allocate funds to enhance capacities in existing facilities, with an estimated expenditure of ₹100 crore. Presently, the company operates nine company-owned processing plants for dairy and four plants for horticulture products. It also collaborates with third-party facilities for processing operations.
Despite challenges such as subdued summer seasons and deflation in the edible oil sector, Mother Dairy anticipates a moderate growth rate of around 7-8 per cent in volume terms for the fiscal year 2023-24. The company aims to leverage its diversified portfolio, including milk and milk products under the Mother Dairy brand, edible oils under the Dhara brand, and various other products under the Safal brand.
Established in 1974 under the 'Operation Flood' initiative, Mother Dairy is a wholly-owned subsidiary of the National Dairy Development Board (NDDB). The company plays a vital role in India's dairy sector, manufacturing, marketing, and selling a wide range of dairy products, fruits, vegetables, and edible oils across Delhi-NCR and beyond. With a robust distribution network, including milk booths and retail outlets, Mother Dairy continues to meet the evolving needs of consumers while driving growth and innovation in the sector.
Source : Business Line
Tags : Nagpur , Karnataka , Milk , Investment , Expansion , distribution , vegetables , Mother Dairy , growth , fruits , processing plants ,
Summary : Mother Dairy plans to invest ₹650 crore in setting up two new processing plants for milk, fruits, and vegetables, along with an additional ₹100 crore for expanding existing capacities. The investment aims to meet the rising consumer demand and expand distribution networks. The new dairy plant in Nagpur, Maharashtra, and the fruit processing plant in Karnataka are expected to enhance production capacities and serve markets across central and southern regions. Despite challenges, Mother Dairy anticipates a moderate growth rate in the current fiscal year.
Adversitement