Mother Dairy has stated that it plans to invest Rs 650 crore in setting up two new plants for processing milk, fruits and vegetables, alongside another Rs 100 crore to expand capacities of existing plants, in response to increasing consumer demand, news agency PTI reported.
As a prominent milk supplier in Delhi-NCR, the company aims to expand its distribution network and cater to a wider consumer base.
Manish Bandlish, MD of Mother Dairy Fruits and Vegetables, stated that the company has allocated a capital expenditure of over Rs 750 crore to enhance dairy and F&V processing capacities across key locations.
The major investment includes a new dairy plant in Nagpur, Maharashtra, with an estimated investment of Rs 525 crore. This greenfield plant will have a processing capacity of 6 lakh litres of milk per day, expandable up to 10 lakh litres per day, serving markets in central and southern regions.
Additionally, Mother Dairy plans to commission a fruit processing plant in Karnataka with an investment of over Rs 125 crore under its Safal brand. Both these projects are expected to be completed within two years.
Bandlish also mentioned strengthening capacities in existing facilities with an outlay of around Rs 100 crore. Currently, Mother Dairy operates nine company-owned processing plants for dairy and four plants for horticulture (fruits and vegetables), besides collaborating with third-party facilities.
The company, with a turnover of around Rs 14,500 crore in the 2022-23 fiscal year, anticipates a moderate growth rate of 7-8 per cent in volume terms for the current fiscal year.
