Mother Dairy expecting 20% revenue growth in FY23 to Rs 15,000 cr

Delhi-NCR's leading milk supplier Mother Dairy is expecting 20 per cent growth in turnover this fiscal year to about Rs 15,000 crore on better demand for products, MD Manish Bandlish said

Delhi-NCR's leading milk supplier Mother Dairy is expecting 20 per cent growth in turnover this fiscal year to about Rs 15,000 crore on better demand for products, its MD Manish Bandlish said.

The turnover of Mother Dairy, which also sells edible oils and fruits & vegetables, stood at Rs 12,500 crore in last fiscal year.

"We are expecting 20 per cent growth this fiscal year in our turnover to reach around Rs 15,000 crore," Mother Dairy Fruits and Vegetables Pvt Ltd MD Manish Bandlish told PTI on the sidelines of IDF-World Dairy Summit held last week at Greater Noida.

He said growth would be driven by both increase 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 summers of 2020 and 2021 because of the pandemic-induced lockdowns.

Last month, Mother Dairy increased milk prices by Rs 2 per litre in Delhi-NCR due to rise in its procurement and other input costs. It had increased milk prices by same amount in March this year as well.

"Our milk procurement cost has further increased by Rs 2 per litre 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 & vegetables and bread businesses were also performing well.

In the bread segment, Mother Dairy will introduce new products to offer 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 National Dairy Development Board (NDDB).

It was established under the initiative of 'Operation Flood', the world's biggest dairy development programme 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 & vegetables, frozen vegetables & snacks, unpolished pulses, pulps & concentrates, etc. under the 'Safal' brand.

In Delhi-NCR, it 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 litres per day. For fresh fruits and vegetables, the company has its own 4 plants, while for edible oils it manufactures through 16 associated plants.