Mother Dairy to expect a revenue increase by FY18

India: Mother Dairy, a subsidiary of National Dairy Development Board (NDDB), expects a turnover of USD1,493 million by FY18. The company currently has a turnover of around USD1,044 million which is driven by rising population and rising demand for milk and milk products in India. The company is expecting this turnover on the back of product and geographical expansion as well as new product development. This fiscal year, the company expects to do a business of around USD1266 million.

Further, the company is looking forward to foray into markets like Pune, Nagpur, Pune, Nasik and Aurangabad and the company is further planning to expand within Maharashtra. The company is setting up a newly integrated dairy plant at Bhiwandi, Maharashtra the estimated cost of plant would be around USD14.9 million. About the product range, company is planning to introduce its existing products to newer regions like Odisha, Bihar and Southern India, in coming three to four months’ company has plans to enter Tirupati also.

The company has launched its cow milk in Hyderabad, which is known as a buffalo milk market, though the market for cow milk is small in Hyderabad but company is expecting the demand to pick up in coming years with increasing awareness of the benefits of cow milk. Hyderabad cow milk market is only 75,000 litres per day against the total supply of 25 lakh litres per day. 

According to TechSci Research, due to continuously increasing population in India the demand for the milk and dairy products is increasing which is pushing the dairies to expand their milk operations in order to meet the demands. Companies are opening such factories which are equipped with modern facilities so that they can offer value added products to the consumers. The companies in order to maximise the profits should offer its dairy products to the newer markets and regions.

According to a recent report published by TechSci Research, “India Dairy Products Market By Type (Drinking Milk, Ghee, Butter, Ice Cream, Milk Powder, Cheese, Yogurts, Probiotic Drinks and Others), Competition 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.