Mother Dairy eyes Rs 10,000 cr revenue in next two years
Mother Dairy Fruit & Vegetable, a wholly owned subsidiary of the National Dairy Development Board (NDDB), is expecting to touch Rs 10,000 crore turnover in the next two years with its expansion plan towards the eastern and western parts of India, a company official said on Thursday.
"We should be reaching Rs 8,000 crore revenue by end of this fiscal year (2016-17) and we have planned to reach Rs 10,000 crore in the next two years," the company's Managing Director S. Nagarajan said here.
About 65-70 per cent of its turnover comes from the North. "We have formed a core group in the company and the group is working on the expansion towards East and West. We are looking at retail expansions," he said.
The company is also focusing on Marathwada and Vidarbha region with a plan to cover 3,000 villages and procure 2.5-3 lakh litres of milk over the next three years, he said, adding that the company will be investing Rs 70 crore in the region.
He also said an MoU was signed between the Maharashtra government and NDDB for establishment of a new ultra modern milk and milk product processing plant in Bhiwandi. "The plant will have an initial milk processing capacity of 5 lakh litre per day (LLPD) expandable to 10 LLPD and the plant which is being set up with a total outlay of Rs 120 crore is expected to be running by the middle of the next year," he said.
The dairy major has helped to set up five producers' companies across Gujarat, Uttar Pradesh, Punjab, Andhra Pradesh and Rajasthan for milk procurement, he said, adding that the company is in a process to set up another 5-6 producer companies to strengthen its milk procurement activity.
Nagarajan was here in the city for the launch of a milk portfolio branded under 'Dailycious'.
The company is also sourcing fruits and vegetables from 7,500-8,500 farmers across 16 states.
The company has set up a green field project for fruits and vegetables processing at Ranchi in Jharkhand at an outlay of Rs 82.77 crore. The first phase of the project has already been inaugurated and the second phase of aseptic pulping line is expected by December 2017, which will have a capacity of 17,700 mt per annum.
The company sells milk value added products under the Mother Dairy brand, edible oil under Dhara and fruits and vegetables under the Safal brand.
"We are coming out with low calorie products soon," he added.