Mother Dairy plans to invest Rs 600 Crore in new processing plants

Mother Dairy, a leading dairy and food company in India, has announced an investment of approximately Rs 600 crore to establish two new fruit and vegetable processing plants in Gujarat and Andhra Pradesh. This strategic move aims to strengthen the company’s foothold in the horticulture sector and cater to the increasing consumer demand for processed produce under its Safal brand.

Expansion Plans and Investments
The company will allocate over Rs 400 crore for a plant in Itola, near Baroda, Gujarat, with construction expected to be completed within two years. The second facility, planned for Kuppam, Andhra Pradesh, will receive an investment ranging from Rs 150-200 crore.

Manish Bandlish, Managing Director of Mother Dairy, stated, “We are yet to get the land from the government for the Andhra Pradesh plant. Once that’s secured, we’ll start working on the investment.” A Detailed Project Report (DPR) is still being developed for the Kuppam facility.

Currently, Mother Dairy operates three fruit and vegetable processing plants under the Safal brand in Ranchi (Jharkhand), Bengaluru (Karnataka), and Mangolpuri (Delhi), collectively handling two lakh tonnes of produce annually. The upcoming plants in Gujarat and Andhra Pradesh will significantly increase this capacity, focusing on both domestic and export markets. The new facilities will produce pulp and concentrates from fruits like mango, guava, and pomegranate, along with frozen products such as French fries.

Broader Growth Strategy
Mother Dairy’s expansion aligns with its larger strategy of scaling up operations. Apart from horticulture, the company is also constructing a milk and dairy processing plant in Nagpur, Maharashtra, with an investment exceeding Rs 500 crore. Set to begin operations by 2026, this facility will cater to markets in central and southern India, reinforcing the company’s diversification beyond its stronghold in Delhi-NCR.

Additionally, Mother Dairy has recently introduced an idli-dosa batter in the Delhi-NCR market, which has received positive consumer feedback. “It’s been very well received by consumers. We’ve already hit one tonne per day,” Bandlish noted. The company plans to finalize a full-scale rollout decision in April, which would require an additional Rs 5-10 crore investment.

Market Growth and Future Outlook
Mother Dairy is targeting a turnover of Rs 17,500 crore in the 2024-25 fiscal year, marking a 15-16% increase from Rs 15,000 crore the previous year. As a subsidiary of the National Dairy Development Board, the company continues to expand its portfolio, which includes dairy products, edible oils under the Dhara brand, and fresh and frozen produce under Safal.

By investing in new processing plants and expanding its product range, Mother Dairy is positioning itself as a key player in India’s rapidly growing food processing industry.