MD Jayatheertha Chary outlines a ₹2,000 crore multi-plant capex roadmap, high-margin portfolio expansions, and a rapid quick-commerce strategy to double growth.
Indian processing giant Mother Dairy Fruit & Vegetable is aggressively positioning itself to double its annual revenue over the next three to four years from its current commercial baseline of ₹20,300 crore. To sustain this ambitious trajectory, the company has approved more than ₹2,000 crore in capital expenditures over the past two years, prioritizing the establishment of new state-of-the-art manufacturing hubs to expand its national footprint across 16 states. Key projects driving this infrastructure blitz include a near-complete ₹600 crore milk processing facility in Nagpur, brand-new processing setups across Bihar and Punjab, targeted capacity expansions in Tirupati, and the comprehensive refurbishment of the newly acquired Narmul cooperative plant in Hyderabad to establish a dominant presence in southern and eastern India.
Concurrently, the dairy major is successfully leveraging the rapid emergence of quick-commerce (q-comm) delivery networks to transform its downstream retail architecture. Quick-commerce channels currently generate 7 to 8 percent of Mother Dairy’s total enterprise turnover and account for a substantial 25 percent of its high-value dairy products portfolio. Under MD Jayatheertha Chary’s forward-looking strategy, the brand plans to double quick-commerce’s share in its dairy operations over the next two years by locking step with platforms expanding into fast-growing Tier 2 and Tier 3 cities, backed by an evolved media mix that allocates more than 40 percent of its marketing budgets to digital and social media campaigns.
This aggressive market expansion is being managed alongside severe upstream macroeconomic cost pressures affecting primary producers and processors alike. Over the past year, farmgate milk procurement prices escalated by nearly 8 percent, while geopolitical conflicts drove industrial packaging material costs up by more than 40 percent alongside rising petroleum-driven logistics overheads. Operating as a critical subsidiary of the National Dairy Development Board (NDDB), Mother Dairy restricted its consumer price adjustments to a marginal 3 to 3.5 percent to maintain consumer affordability while routing an industry-leading 80 to 85 percent of all sales realizations directly back to its rural farming base.
Beyond its core dairy milksheds, the cooperative is executing parallel growth strategies for its specialized Safal fresh produce and Dhara edible oil segments. The Safal division aims to grow its existing 30,000-tonne fruit pulp operations by 2 to 2.5 times over the next three to four years, anchoring production with a new facility in Kuppam, Andhra Pradesh, to handle diverse crops like bananas, guavas, and tomatoes, alongside a dedicated French Fries plant in Itola, Gujarat, opening by early fiscal year 2028. Meanwhile, the Dhara brand is prioritizing domestic food security by directly sourcing 70 to 75 percent of its oilseed portfolio from indigenous farmer groups to minimize import burdens, while the company’s two-year-old export wing prepares to ramp up volume shipments to the UAE and broader GCC territories as global freight rates stabilize.
Source: BW Businessworld
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