January 21, 2013

Mother Dairy may set up production facility in southern India

Mother Dairy Fruit & Vegetable Private Limited is planning to set up a manufacturing and marketing base either in Hyderabad or Bangalore, India.

According to organisation's dairy division head Subashis Basu, there will be a manufacturing base in the south by the end of this year. However, it is yet to be decided whether the INR5,300-crore (US$988 million) Mother Dairy will have its own production facility or have a tie-up with a third party in this regard.

Basu said that Mother Dairy was expanding its ice-cream market and would be completing its national footprint in 2013-14. "Thereafter, in about two years' time, we expect to occupy the top position in the estimated INR1,800-crore (US$335 million) ice-cream and frozen desserts market in the country."

At present, with an annual turnover of INR300 crore (US$56 million), Mother Dairy stands third in terms of market share. Ice-cream accounts for over 40% of its INR700-crore (US$130 million) dairy products (excluding liquid milk) turnover.

Basu said Mother Dairy, which launched its entire range of ice-creams in Hyderabad on Friday (Jan 18), would be foraying into Chennai in a couple months and subsequently to Patna and Ahmedabad. "We are focusing on the top 20 cities in the country. So far, we have reached 12-13 cities," he said.

Mother Dairy is expecting to corner 10% of an estimated INR130 crore (US$24 million) ice-cream market in Andhra Pradesh over a period of one year. "With a growth rate of 80% a year, we are the fastest growing brand in Mumbai," Basu said emphasising how Mother Dairy would be able to secure one-tenth of the AP's ice-cream market in just one year.

Commissioned in December 1974, Mother Dairy today is a market leader in the branded milk segment in Delhi where it sells close to three million litres a day. Besides dairy products, it sells frozen foods and juices under the brand name 'Safal' and 'Dhara' brand edible oil.