Mother Dairy, a prominent player in the dairy industry, has unveiled plans to invest Rs 750 crore in setting up two new processing plants for dairy, fruits, and vegetables. This strategic move aims to meet the growing consumer demand and expand the company’s operations.
Expansion Plans
The investment includes Rs 650 crore for establishing two new plants dedicated to milk processing and fruits & vegetables processing. Additionally, Mother Dairy will allocate Rs 100 crore to enhance the capacities of its existing facilities. These investments underscore the company’s commitment to catering to the evolving needs of its consumers.
One of the significant investments is the construction of a large dairy plant in Nagpur, Maharashtra, with an estimated investment of Rs 525 crore. This state-of-the-art facility will have a daily milk processing capacity of 6 lakh litres, extendable up to 10 lakh litres per day. It is strategically positioned to serve markets in central and southern regions.
Furthermore, Mother Dairy plans to inaugurate a new fruit processing plant in Karnataka, investing over Rs 125 crore under its Safal brand. These plants are slated to be operational within two years, contributing to the company’s growth and market reach.
Strengthening Current Capabilities
In addition to the new facilities, Mother Dairy will bolster its existing infrastructure with an investment of approximately Rs 100 crore. This initiative aims to enhance efficiency and streamline operations across its processing plants.
Continued Growth Trajectory
Despite facing challenges such as subdued summer seasons and deflation in the edible oil sector, Mother Dairy anticipates a moderate growth rate of 7-8% in volume terms for the fiscal year 2023-24. The company remains optimistic about its performance and is poised to capitalize on emerging opportunities in the dairy and agri-business sectors.
