Mother Dairy to invest Rs 750 crore for two new milk, fruits processing units

Mor Dairy expansion plans: Mor Dairy has announced plans to invest Rs 650 crore in setting up two new plants for milk processing and fruits and vegetables processing, aiming to meet growing consumer demand. ditionally, leing milk supplier in Delhi-NCR will allocate Rs 100 crore to enhance capacities at its existing facilities.

Manish Bandlish, Managing Director of Mor Dairy Fruits and Vegetables Pvt Ltd, stated, "In our commitment to expand distribution and reach consumers, we have allocated a capital expenditure (capex) of over Rs 750 crore to enhance our dairy and fruits & vegetables processing capacities across strategic locations."

Mor Dairy is set to establish a dairy plant in Nagpur, Maharashtra, with an investment of approximately Rs 525 crore. greenfield facility will boast a processing capacity of 6 lakh litres of milk per day, expandable to 10 lakh litres daily, catering to markets in central and sourn regions.

Bandlish furr revealed plans to commission a new fruit processing plant in Karnataka under Safal brand, with an investment exceeding Rs 125 crore. se ventures are projected to be operational within two years.

In dition to se new facilities, Mor Dairy intends to reinforce capacities at its existing sites, with an investment of about Rs 100 crore. Presently, company operates nine company-owned dairy processing plants with a total capacity exceeding 50 lakh litres of milk per day. It also uses third-party facilities for processing.

For horticulture segment, Mor Dairy operates four proprietary plants, while it collaborates with 15 associated plants for edible oil manufacturing.

Despite facing challenges such as subdued summer demand and deflation in edible oil sector, Mor Dairy anticipates a moderate growth rate of 7-8 per cent in volume terms for fiscal year 2023-24, with a turnover of around Rs 14,500 crore in previous fiscal.

Established in 1974, Mor Dairy is now a wholly-owned subsidiary of National Dairy Development Board (NDDB). It was initiated under 'Operation Flood' program, aimed at transforming India into a milk-sufficient nation.

Known for its 'Mor Dairy' brand, company manufactures, markets, and sells a wide range of milk and milk products, including cultured products, ice creams, paneer, and ghee. 

It also offers edible oils under 'Dhara' brand and various or products under 'Safal' brand, including fresh fruits & vegetables, frozen vegetables & snacks, unpolished pulses, and pulps & concentrates. In Delhi-NCR, it operates numerous milk booths and Safal retail outlets.

(With PTI inputs)