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Mother Dairy, headquartered in Delhi, has embarked on a strategic journey to acquire land for the establishment of a state-of-the-art dairy plant in Nagpur, Maharashtra. This ambitious endeavour comes with a substantial investment of Rs 500 crore, signifying the company's commitment to expanding its footprint beyond the confines of North India. This significant step is part of a broader capital expenditure plan, amounting to Rs 700 crore, which received the board's unanimous approval last year. The execution of this multi-year investment plan is poised to bring about transformative changes in the company's operational landscape.
Manish Bandlish, the Managing Director of Mother Dairy Fruit and Vegetable Pvt. Ltd., a wholly-owned subsidiary of the National Dairy Development Board, unveiled the company's vision for the upcoming facility. He revealed that they are in the advanced stages of land procurement in Nagpur, where they intend to establish a dairy and value-added dairy plant. Simultaneously, they are planning a food processing plant in Karnataka, with internal approvals in place, and the entire process is expected to span 1.5 to 2 years. The upcoming Nagpur plant has applied for inclusion in the production-linked incentive scheme for food processing.
This strategic move is expected to position Mother Dairy as a dominant force in the dairy, edible oil, and frozen vegetable markets in North India. Furthermore, it will serve as a catalyst for the company's expansion into South India, where its current presence is limited, primarily concentrated in Hyderabad and Bangalore. Bandlish emphasized the importance of the Nagpur plant, highlighting that it is poised to serve as a central hub for the company, catering to both the southern and other markets. In the preceding year, Mother Dairy significantly expanded its manufacturing capacities, particularly in dairy products and value-added products.
With the recent approval of Rs 700 crore in capital expenditure by the board, the company is well-prepared for the upcoming season, benefiting both Safal and the dairy segments of the company. Mother Dairy's diverse product portfolio includes packaged and toned milk, edible oils, fruits and vegetables, frozen vegetables, pulses, and processed foods like fruit juices and jams. The decision to establish a dairy plant in Nagpur aligns with the increased demand for packaged foods and beverages post-pandemic. Innovation serves as a pivotal catalyst for the company's accomplishments. Mother Dairy is actively focused on pioneering new products in various categories, including bakery, ice cream, paneer, and other value-added items.
Bandlish emphasized the company's resolve to introduce 100 new products over the next three years, underscoring that they are steadfastly progressing towards realizing this ambitious goal. As Mother Dairy takes its stride towards a new era of expansion and diversification, the investment in the Nagpur plant serves as a testament to the company's unwavering dedication to excellence and its aspiration to meet the evolving needs of consumers across India. The journey towards a more prosperous and sustainable future for Mother Dairy is unfolding as the company positions itself as a pioneer in the dairy and food processing industries.
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