Mother Dairy to Invest ₹600 Crore in New Processing Facilities

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. These facilities will be located in Gujarat and Andhra Pradesh and aim to strengthen the company’s presence in the horticulture sector. The move is in response to the growing demand for processed produce under its well-known Safal brand.

Major Investment Plans in Gujarat and Andhra Pradesh

The company has allocated over Rs 400 crore for a state-of-the-art processing plant in Itola, near Baroda, Gujarat. The construction of this facility is expected to be completed within two years. Meanwhile, the second plant, planned for Kuppam in Andhra Pradesh, will see an investment of Rs 150-200 crore.

Manish Bandlish, Managing Director of Mother Dairy, stated, “We are still in the process of acquiring land from the government for the Andhra Pradesh facility. Once the land is secured, we will proceed with the investment.” He further added that a Detailed Project Report (DPR) is being finalized for the Kuppam plant.

Boosting Production Capacity Under Safal Brand

Currently, Mother Dairy operates three fruit and vegetable processing plants under the Safal brand in Ranchi (Jharkhand), Bengaluru (Karnataka), and Mangolpuri (Delhi). These plants collectively process around two lakh tonnes of produce annually. The addition of the new plants in Gujarat and Andhra Pradesh is expected to significantly increase this capacity, catering to both domestic and export markets.

The new facilities will focus on producing pulp and concentrates from fruits such as mango, guava, and pomegranate. Additionally, they will manufacture frozen food products, including French fries, expanding the company’s processed food offerings.

Expansion Strategy Beyond Horticulture

Mother Dairy’s investment in horticulture processing aligns with its broader expansion strategy. The company is also building a milk and dairy processing plant in Nagpur, Maharashtra, with an investment exceeding Rs 500 crore. This facility, set to begin operations by 2026, will serve markets in central and southern India, further diversifying Mother Dairy’s footprint beyond its stronghold in Delhi-NCR.

New Product Launches and Market Growth

Apart from expanding its processing plants, Mother Dairy has recently introduced an idli-dosa batter in the Delhi-NCR market. The product has received a positive consumer response, with sales reaching one tonne per day. Bandlish confirmed that the company will decide in April whether to scale up the product nationwide, which would require an additional investment of Rs 5-10 crore.

Financial Growth and Future Projections

Mother Dairy is aiming for a turnover of Rs 17,500 crore in the 2024-25 fiscal year, marking a 15-16% increase from the Rs 15,000 crore revenue recorded the previous year. As a subsidiary of the National Dairy Development Board, the company continues to expand its product portfolio, which includes dairy, edible oils under the Dhara brand, and fresh and frozen produce under Safal. These strategic investments position Mother Dairy as a key player in India’s growing food processing industry.