Mother Dairy Expects 20 Pc Revenue Growth in FY23 to Rs 15,000 cr

Mother Dairy has 9 company-owned processing plants for dairy. It also undertakes processing at third-party facilities.
Mother Dairy Expects 20 Pc Revenue Growth in FY23 to Rs 15,000 cr

Delhi-NCR's leading milk supplier Mother Dairy is expecting a 20 percent growth in turnover this fiscal year to about Rs 15,000 crore on better demand for products, it's MD Manish Bandlish said. The turnover of Mother Dairy, which also sells edible oils and fruits and vegetables, stood at Rs 12,500 crore in last fiscal year.

"We are expecting 20 percent growth this fiscal year in our turnover to reach around Rs 15,000 crore," Mother Dairy Fruits and Vegetables Pvt Ltd MD Manish Bandlish said.

He said growth would be driven by both increases in volumes and values of its various dairy products.

"We are witnessing strong demand for all our milk and other dairy products. Ice cream sales have grown significantly during summer," Bandlish noted.

Ice cream sales were adversely affected during the summers of 2020 and 2021 because of the pandemic-induced lockdowns. Last month, Mother Dairy increased milk prices by Rs 2 per liter in Delhi-NCR due to a rise in its procurement and other input costs. It had increased milk prices by the same amount in March this year as well.

"Our milk procurement cost has further increased by Rs 2 per liter after we increased the retail prices last month," Bandlish said.

When asked whether retail prices would be further increased, he said, "We may consider it after 3-4 months if this trend of rising input prices continues."

Animal feed costs have increased sharply, forcing farmers to increase their selling prices. As a result, the milk procurement cost of dairy companies has shot up and some of the increase has already been passed on to customers.

Besides dairy products, Bandlish said Mother Dairy's edible oil, fresh fruits and vegetables, and bread businesses were also performing well. In the bread segment, Mother Dairy will introduce new products to offer an entire range to customers visiting its milk booths and Safal retail outlets.

Mother Dairy, which was commissioned in 1974, is a wholly-owned subsidiary of the National Dairy Development Board (NDDB). It was established under the initiative of 'Operation Flood', the world's biggest dairy development program launched to make India a milk-sufficient nation.

Mother Dairy manufactures, markets, and sells milk and milk products including cultured products, ice cream, paneer, and ghee under the 'Mother Dairy' brand. The company sells edible oils under the 'Dhara' brand and fresh fruits and vegetables, frozen vegetables and snacks, unpolished pulses, pulps and concentrates, etc. under the 'Safal' brand. Delhi-NCR, has hundreds of milk booths as well as Safal retail outlets.

Mother Dairy has 9 company-owned processing plants for dairy. It also undertakes processing at third-party facilities. Total milk processing capacity is over 50 lakh liters per day. For fresh fruits and vegetables, the company has its own 4 plants, while for edible oils it manufactures through 16 associated plants.

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