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Delhi's Mother Dairy to ramp up Maharashtra presence with Rs 200 crore units

A leading player in Delhi and National Capital Region (NCR), Mother Dairy has small presence in the western region.

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Milk and milk products maker Mother Dairy will invest around Rs 200 crore to set up two milk processing units in Maharashtra.

A leading player in Delhi and National Capital Region (NCR), Mother Dairy has small presence in the western region. Once operational, company management said, the new units will help spruce up presence and penetration in Maharashtra, particularly Mumbai.

S Nagarajan, managing director, Mother Dairy Fruit & Vegetable Pvt Ltd (MDFVPL), said an agreement has been signed with the Maharashtra government to upgrade and run an existing plant in Nagpur. "We will invest between Rs 65-70 crore towards making this (Nagpur) plant operational by mid-January 2017. A significant part of it will be towards setting up a milk procurement system in a phased manner in Marathwada and Vidarbha," he said.

Another memorandum of understanding (MoU) has been signed between the Maharashtra government and the National Dairy Development Board (NDDB), the parent of Mother Dairy, for setting up a new ultra-modern milk and milk products processing plant at Bhiwandi.

"The government will be allocating a land parcel spread across 18-odd acre to set up this unit, which will call for an investment of between Rs 120 crore and Rs 140 crore. The plant will initially have a milk processing capacity of three lakh litres per day and can be expanded to 10 lakh litre per day once fully operational," said Nagarajan.

The Bhiwandi unit, he said, will get operational in 18 months post land allocation and manufacture poly pack milk, fermented dairy products (curd, mishti doi, yoghurt, butter milk, lassi), paneer and ice cream. The company will look to ramp up milk sales from two lakh litres per day in Mumbai to over five lakh with the new units.

Mother Dairy, which operates 800-odd automated vending machine (AVM)-based retail outlets in the Delhi and NCR region, has also begun test runs in Mumbai for it. It has opened 18 AVMs across Mumbai and Navi Mumbai. "These AVMs have been placed in existing third-party outlets to guage the market response. We will roll out more such AVMs once we have perfected its operations and are confident of its successful implementation across Mumbai," said Sandeep Ghosh, business head – milk, MDFVPL.

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