New Delhi: Mother Dairy is targeting to double its annual revenue from the current ₹20,300 crore to around ₹40,000 crore over the next three to four years, driven by major investments in manufacturing capacity, rapid growth in value-added dairy products, and the expanding reach of quick commerce, Managing Director Jayatheertha Chary has said.
In an interview with BW Businessworld, Chary said the company has approved over ₹2,000 crore in capital investments during the past two years to strengthen its manufacturing network across India. New projects are underway in Nagpur, Bihar, Punjab, Gujarat, and Andhra Pradesh, while Mother Dairy is also refurbishing the Narmul dairy plant in Hyderabad to expand its footprint in Telangana.
The ₹600-crore Nagpur milk processing plant is nearing completion and is expected to become operational by the end of the current financial year. Additional projects include two new facilities in Bihar, one in Punjab, and capacity expansion at Tirupati in Andhra Pradesh.
Value-Added Dairy Products Lead Growth
Mother Dairy’s value-added dairy portfolio continues to outpace the overall business. During FY26, the company recorded 17% overall revenue growth, while paneer sales grew by over 30% and curd expanded by more than 25%. The company also strengthened its beverages portfolio with aseptic flavoured milk and continues to scale premium and protein-rich dairy offerings under its recently launched Pro range.
Chary said value-added products remain central to the company’s long-term strategy, as they generate higher margins that can be reinvested in dairy infrastructure while enabling the company to maintain affordable milk prices for consumers and remunerative procurement prices for farmers.
Quick Commerce Emerges as a Key Growth Channel
Mother Dairy is also witnessing strong momentum through quick commerce platforms. The channel currently contributes 7–8% of the company’s total business and nearly 25% of its value-added dairy sales. The company expects the contribution of quick commerce within its dairy products business to double over the next two years as platforms expand into Tier II and Tier III cities.
National Expansion Beyond Core Markets
Although Delhi-NCR remains Mother Dairy’s largest market, the company is focused on expanding its presence beyond the 16 states where it currently operates. Future growth will be driven by investments in eastern and southern India through a combination of company-owned facilities and strategic partnerships.
Safal and Foods Business to Scale Up
Beyond dairy, Mother Dairy plans significant expansion of its Safal fruits and vegetables business. The company currently processes over 30,000 tonnes of fruit pulp annually and aims to increase this business by 2–2.5 times over the next three to four years.
Read More: Private Dairies Raise Milk Prices by ₹4/Litre in Tamil Nadu Amid Procurement Challenges
A new fruit processing facility at Kuppam, Andhra Pradesh, is expected to become operational by the 2028 processing season, supporting value-added products made from mango, banana, guava, amla, tomato, and other fruits. The company is also establishing a French fries manufacturing plant at Itola, Gujarat, scheduled to commence operations in FY28.
Balanced Growth Strategy
Commenting on rising input costs, Chary said milk procurement prices increased by around 8% over the past year, while packaging costs rose sharply due to higher crude oil prices and logistics expenses. Despite these pressures, Mother Dairy increased consumer prices by only 3–3.5%, reflecting its commitment to balancing farmer remuneration with consumer affordability.
Looking ahead, the company expects premium dairy products, protein-enriched offerings, quick commerce, and manufacturing expansion to be the key growth drivers as it pursues its ambition of becoming a stronger national dairy brand while continuing to support millions of dairy farmers through the cooperative ecosystem.
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