Mother Dairy eyes revenue jump with e-tailers tie-up

On expected turnover this fiscal, Managing Director said it should be close to Rs 8,000 crore

In order to tap the fast growing e-commerce business in the country, Mother Dairy has tied up with about 10 e-tailers to sell dairy products, fruits and vegetables, aiming to boost its revenue and farmers income.

Mother Dairy, which supplies about 30 lakh litres of milk in the national capital region, had posted a turnover of Rs 7,186 crore during last fiscal, out of which about 75% was from dairy segment.

"We are tying up with e-commerce companies like Big Basket to increase our reach to the customers. We also want to improve farmers' income through increased procurement of milk and fresh fruits and vegetables," Mother Dairy Managing Director S Nagarajan told PTI.

The company has tied up with nine e-tailers - Big Basket, Grofers, AskMe Grocery, Sangam Direct, SRS Grocery, Just Buy Live, Innerchef, Grocermax and Orange E-Tokri - for sale of dairy products, ice-cream and frozen/fresh fruits and vegetables in different cities.

"Mother Dairy is witnessing a growth of 10% in sales month-on-month through e-commerce space," he said.

Asked whether the company would launch its own e-commerce platform, Nagarajan said: "We do not want to enter into that space directly".

On expected turnover this fiscal, Nagarajan said it should be close to Rs 8,000 crore.

As part of the expansion plan, Mother Dairy is setting up a processing plant in Ranchi at a cost of Rs 75 crore.

The pulp and concentrate line, which has a capacity of 20,000 tonnes per annum of finished products, is expected to be operational by January next year, he said, adding that the plant would be fully operational next fiscal.

Mother Dairy was commissioned in 1974 as a wholly- owned subsidiary of the National Dairy Development Board (NDDB).

The company sells milk and milk products including ice creams, paneer and ghee under the 'Mother Dairy' brand. It is into edible oil business under Dhara brand. Moreover, it sells frozen vegetables, unpolished pulses and other processed foods under the 'Safal' brand. Mother Dairy has 400 'Safal' outlets in Delhi-NCR and Bengaluru.