Industry News

Mother Dairy has tied up with e-tailers tie-up aiming for revenue jump

India: Mother Dairy a wholly- owned subsidiary of the National Dairy Development Board (NDDB) was commissioned in 1974.The company in order to boost farmer’s income and its revenues has tied-up with 10 e-tailers to sell its fruits and vegetables and dairy products. Mother Dairy is tying up with e-tailers like Grofers, Big Basket, Sangam Direct, AskMe Grocery, Innerchef, SRS Grocery, Orange E-Tokri, Just Buy Live and Grocermax which will sell its dairy products, frozen/fresh fruits and vegetables and ice cream in different cities.

Mother Dairy wants to increase its customer reach and also want to improve farmers’ income by increasing its procurement of fresh fruits and vegetables and milk. Mother Dairy is expecting a month on month growth of 10 percent in its sales by selling its products through e-commerce space.

Mother Dairy, which has 400 'Safal' outlets in Delhi-NCR and Bengaluru supplies around 30 lakh litres of milk in NCR (National Capital Region). Mother Dairy had a turnover of 78,160 million in 2015 and around 75 percent was earned through dairy segment and the company is expecting a turnover of around 80,000 million in this fiscal year. Presently Mother Dairy has no plans to launch its own e-commerce platform as it does not want to enter directly into the e-commerce space.

Further, Mother Dairy is planning to set up a processing plant in Ranchi with a capacity of around 20,000 tonnes per annum of finished products which is expected to be fully functional by January 2017.

According to TechSci Research, dairy sector has a huge potential in India and due to continuously increasing population the demand for the milk and dairy products is increasing which is pushing the dairies to expand their business and enter into the e-commerce space in order to expand their customer base and reach. India is a strategic market for dairy business and has highest potential to grow up in the coming years and companies by offering their products through e-commerce space will enjoy maximum revenues as e-commerce platform has the ability to deliver a wide variety of products, managing the delivery timelines and has high fill rates which satisfy and attract huge amount of customers in the long run.

 

According to a recent report published by TechSci Research, “India Dairy Products Market Forecast and Opportunities, 2011 – 2021”, the market for dairy products in India is projected to grow at a CAGR of over 7% during 2016 - 2021. In 2015, North India dominated the country’s dairy products market, on account of increasing per capita expenditure, rising youth population, introduction of value added dairy products, changing consumption patterns, and growing penetration of international players. India dairy products market is witnessing a shift towards healthier products such as probiotic drinks, yogurts, etc. Few of the leading players operating in India dairy products market include Gujarat Cooperative Milk Marketing Federation Ltd., National Dairy Development Board, Karnataka Cooperative Milk Producers Federation Ltd., and Tamil Nadu Co-operative Milk Producers' Federation Limited, among others.