Mumbai: Mother Dairy is entering a new phase of expansion, with the company targeting ₹24,000 crore in revenue in FY2026-27 and planning more than ₹2,000 crore of investment across dairy, horticulture and edible oils.
The dairy major, which more than doubled its turnover from a little over ₹10,000 crore in FY2020-21 to above ₹20,000 crore in FY2025-26, is now looking to build a broader national business beyond its traditional strength in liquid milk and Delhi-NCR.
A key part of the strategy is the rapid expansion of value-added dairy products, including curd, paneer, cheese, butter, ghee and ice cream.
Value-added dairy target raised to 40%
Value-added products currently account for around 25% of Mother Dairy’s overall dairy business, according to the company. The portfolio grew by approximately 25% in FY2025-26.
Mother Dairy aims to increase the contribution of value-added dairy to approximately 40% of its dairy business over the next three years.
Jayatheertha Chary, Managing Director, Mother Dairy, said changing consumption patterns are creating opportunities beyond traditional liquid milk.
“The way India consumes dairy is changing from the morning glass of milk to paneer, cheese, curd, ghee, ice creams and a much wider range of consumption occasions.”
The company sees this diversification as an opportunity to participate in a larger share of consumers’ overall dairy consumption.
Non-NCR contribution rises to 38%
Mother Dairy is also expanding geographically. While Delhi-NCR remains an important market, the company’s non-NCR contribution to its dairy business has increased from 25% to 38% over the past five years, according to Chary.
The company has recently expanded into markets including Gujarat, Jaipur and Jodhpur in Rajasthan, and Tirupati in Andhra Pradesh.
Going forward, Mother Dairy has identified Maharashtra, Uttar Pradesh, West Bengal, Bihar and Telangana, among other markets, as focus areas for expansion.
The strategy involves a combination of new processing capacity, wider distribution and greater presence across newer consumer channels.
Investments planned across multiple states
Mother Dairy plans to invest more than ₹2,000 crore across its dairy, horticulture and edible-oil businesses.
In dairy, planned investments include processing facilities in Uttar Pradesh, Punjab, Maharashtra, Telangana and Bihar. The company also plans horticulture facilities in Andhra Pradesh and Gujarat, along with an edible-oil packaging plant in Maharashtra.
Also Read: ITC Steps Up Dairy Expansion in Eastern India, Focuses on Value-Added Products
According to the company, these investments are intended to create the production and distribution infrastructure required to support its expansion across categories and geographies.
Butter, cheese and ice cream among focus categories
Mother Dairy is strengthening several value-added categories where it sees opportunities for further growth.
In butter, the company has commissioned a new table-butter manufacturing line in Gujarat and is expanding its portfolio with butter chiplets.
In cheese, it has added Mozzarella to its portfolio.
The company is also expanding its ice-cream business, with a milk-based portfolio that Chary said sees around 20 new product launches annually across formats such as cups, cones and bars.
Mother Dairy’s broader value-added portfolio also includes products such as probiotic curd and drinks, Mishti Doi and Tadka Chaach.
Building a national consumer franchise
Chary said consumers across India broadly seek similar attributes from dairy brands, including trust, quality, consistency and value, although consumption preferences and occasions differ by region.
The company’s approach is therefore to retain the Mother Dairy brand proposition while adapting its category mix to local consumption patterns.
The objective is to increase availability and relevance across markets rather than simply replicate the Delhi-NCR product mix in every region.
Marketing investment shifts towards multiple platforms
As the company expands beyond its traditional markets, its marketing strategy is also broadening.
Mother Dairy has increased its presence across sports, entertainment and digital platforms, including associations with properties such as the ICC Men’s Cricket World Cup, ICC Champions Trophy and IPL.
According to Chary, the objective is not simply to increase advertising expenditure but to reach consumers across different categories and consumption occasions, with particular attention to younger consumers.
₹24,000-crore revenue ambition
Mother Dairy is targeting more than 20% turnover growth in FY2026-27, taking revenue to around ₹24,000 crore, following its crossing of the ₹20,000-crore mark in FY2025-26.
The company attributes its ability to scale to its farmer network, milk procurement capabilities, manufacturing footprint and distribution infrastructure.
Its three major businesses — Mother Dairy, Safal and Dhara — provide exposure across dairy, fresh produce and edible oils.
The company said investments in capacity and infrastructure, combined with distribution expansion, are expected to support its next phase of growth.
For Mother Dairy, the strategic shift is therefore not simply from one dairy product to another. It represents an attempt to build a broader national consumer franchise, with value-added dairy, geographic expansion and increased manufacturing capacity forming the core of its FY2026-27 growth agenda.
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