Mother Dairy plans capacity expansion in East and West

National Dairy Development Board-owned Mother Dairy is scouting to create more production capacity in eastern and western parts of the country.
"We are running out of capacity with unprecedented growth in certain categories of value-added dairy products like 'Mishti Doi'. We are scouting for capacity addition in eastern cities like Guwahati and Bhubaneshwar. Plans are also underway for another Greenfield integrated plant in Mumbai," Mother Dairy business head (dairy) Subhashis Basu said here today.
Mother Dairy today launched Bengal's favourite palm jaggery (Nolen Gur) flavoured ice-cream today.
Basu said for the eastern market, tie-up with existing dairy companies or takeover of facilities were two options on which the company was weighing upon to push new dairy products including lassi and milk shake.

Currently, the Delhi based dairy company has two outsourcing plants near Kolkata, but was facing capacity constrains for some products.
In Bhiwandi near Mumbai, where the new integrated dairy plant was expected to come up, final capex plans were still under discussion, Basu said.

Mother Dairy has recently pumped in Rs 150 crore for its Etawah plant in Uttar Pradesh and already has a plant at Vashi where it currently produces yogurt.
The dairy major was internally debating whether this facility should be closed after the new plant comes up.
Speaking about growth, Basu said the eastern region had grown by 45 per cent in the last fiscal to Rs 100 crore revenue.

"In the current fiscal we expect better growth numbers with launch of new products and expansion into new markets in the east," he said.