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Mother Dairy Commits ₹600 Crore to Expand Food Processing Footprint with New Plants in Gujarat and Andhra Pradesh

New Delhi, March 30 – Mother Dairy, a flagship subsidiary of the National Dairy Development Board (NDDB) and a dominant player in Delhi-NCR’s dairy sector, is charting an aggressive expansion path in India’s food processing industry. With a capital infusion of approximately ₹600 crore, the company is set to establish two cutting-edge fruit and vegetable processing plants in Gujarat and Andhra Pradesh — a strategic move aimed at scaling operations under its Safal brand and diversifying its product portfolio.

Gujarat Plant Gets the Green Light: ₹400+ Crore Investment in Itola

The more significant of the two projects will rise in Itola, near Baroda (Vadodara), Gujarat, with an investment pegged at over ₹400 crore. According to Managing Director Manish Bandlish, the company’s board has already cleared the proposal, and construction is expected to begin shortly. “The Itola facility will enhance our processing capabilities substantially. We anticipate project completion within two years,” said Bandlish in an exclusive to PTI.

This facility will serve as a major processing hub for fresh produce sourced from surrounding agricultural belts, with an eye on both domestic distribution and export opportunities. The project aligns with the government’s push to reduce post-harvest losses and bolster agro-processing infrastructure.

Read More: Mother Dairy Launches High-Protein Milk ‘Promilk’ in Delhi-NCR

Kuppam Plant in Andhra Awaits Land Allocation

Mother Dairy’s second proposed unit — earmarked for Kuppam in Andhra Pradesh — carries an investment potential of ₹150-200 crore. However, progress is contingent upon land allocation by the state government. “We’re actively engaging with Andhra Pradesh authorities for land acquisition. Once that’s secured, we’ll proceed with the detailed project report and commence execution,” Bandlish stated.

This expansion in southern India underscores Mother Dairy’s intent to establish a pan-India footprint beyond its traditional northern stronghold, tapping into regional sourcing and consumption trends.

Strengthening the Safal Ecosystem

These new plants will complement Mother Dairy’s existing fruit and vegetable processing units in Ranchi (Jharkhand), Bengaluru (Karnataka), and Mangolpuri (Delhi). Together, these facilities currently process around 2 lakh tonnes of produce annually under the Safal brand, making it one of India’s most extensive fresh produce processing networks.

By expanding in Gujarat and Andhra Pradesh, Mother Dairy aims to improve processing efficiency, cut down on logistics costs, and reduce food wastage — aligning with national food security goals and sustainability benchmarks.

Dairy Business Also Scaling: ₹500 Crore Invested in Nagpur Plant

While diversifying into food processing, the company remains firmly committed to its core dairy operations. A major ongoing project is the ₹500 crore-plus milk and dairy processing plant in Nagpur, Maharashtra. Construction is advancing on schedule, with full commercial operations expected by 2026.

“The Nagpur plant is part of our strategy to strengthen the back-end supply chain while catering to rising demand for high-quality dairy products across central and western India,” Bandlish said.

Innovation in Convenience Foods: Idli-Dosa Batter Debut

In a nod to changing urban lifestyles and the demand for ready-to-cook foods, Mother Dairy recently launched an idli-dosa batter in the Delhi-NCR market. Currently available at Safal booths, the product has seen encouraging uptake, with daily sales hitting one tonne. The company is evaluating a wider rollout by April, which may involve an additional ₹5-10 crore investment in expanded production and distribution capacity.

Strong Financial Outlook for FY25

Riding on its multi-pronged growth strategy, Mother Dairy is projecting a turnover of ₹17,500 crore in FY 2024–25 — a 15–16% rise over the ₹15,000 crore reported in the previous fiscal year. This growth trajectory highlights the company’s adaptability in a fast-evolving consumer landscape and its ability to balance traditional dairy strength with innovation in fresh foods.

Future-Ready Strategy Anchored in Sustainability and Regional Relevance

Mother Dairy’s recent investments reflect a broader pivot — from being a milk-first brand to a comprehensive food and agri-products company. With a focus on building regional capacities, minimizing supply chain inefficiencies, and responding to consumer demand for fresh, local, and ready-to-use products, the company is future-proofing its business while reinforcing its farmer-centric roots.

As India’s food processing sector continues to attract investment and policy attention, Mother Dairy is positioning itself as a frontrunner — combining infrastructure development with consumer-centric innovation.

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