Mother Dairy to set up Rs 75 crore processing plant in Ranchi

This would be the company's first fruits and vegetable (F&V) processing plant in eastern part of the country India

Mother Dairy today announced the setting up of a 25,000 tonnes per year integrated food and vegetable processing plant in Ranchi with an estimated investment of Rs 75 crore.

Jharkhand Chief Minister Raghubar Das today laid the foundation stone for the proposed integrated processing plant to be constructed in the Nagdi Block of Ranchi.

This would be Mother Dairy Fruit and Vegetable Pvt Ltd's first fruits and vegetable (F&V) processing plant in eastern part of the country India and second overall.

"The total capital outlay for this project is estimated to be Rs 75.65 crore and the government subsidy as per Jharkhand industrial policy will be applied for it and our assessment is about Rs 14-15 crore," Mother Dairy said in a statement.

Mother Dairy, a wholly-owned subsidiary of the National Dairy Development Board (NDDB), sells its horticulture products under Safal brand.

"Mother Dairy (SAFAL)'s entry will not only expand the market for fruit and vegetables, but also improve and stabilise prices for farmers in the region. Mother Dairy (SAFAL) will strive to improve the economic well-being of the farmers," NDDB Chairman T Nanda Kumar said.

"The first phase of the project (freezing line) is expected to be operational by December, while the pulp and concentrate processing line will be operational a year later," Mother Dairy said in a statement.

The freezing line will have the capacity to produce 5,000 tonnes per year of finished product and which will mainly include peas produced in the state.

The pulp and concentrate line will have a capacity of 20,000 tonnes per annum of finished products and this will largely include tomato processing, mango and other fruits.

"With huge production of fruits and vegetables, Jharkhand has immense potential for processing of various fruits and vegetables. Through this state of the art facility, we will strive to explore better opportunities for almost 50,000 farmers and their produce," Mother Dairy MD S Nagarajan said.

The company operates one fruits and vegetable processing plant at Bengaluru which has a capacity of 15,000-18,000 tonnes per year.

Mother Dairy earns half of its revenue from horticulture segment by the sale of fresh fruits and vegetables, followed by the sale of pulp and packed food items, including jams and sauces.

Besides horticulture, the company's other three business segments are -- milk, dairy items and edible oils under the brand 'Dhara'. It is the single largest seller of milk and dairy products in NCR.

The company has 400 Safal outlets in Delhi-NCR. Safal outlets are being operated on the franchise model, where the company provides basic infrastructure.