Mother Dairy Plans Rs 600 Crore Investment in Fruit and Vegetable Processing Plants

Rapid Summary

• Mother Dairy plans to invest Rs 600 crore in two new fruit and vegetable processing plants in Gujarat and Andhra Pradesh.
• The Gujarat plant at Itola near Baroda will cost over Rs 400 crore and is expected to be completed within two years.
• The Andhra Pradesh plant at Kuppam will involve an investment of Rs 150-200 crore, with land acquisition and detailed project report (DPR) still pending.
• Mother Dairy’s Safal brand currently has three processing plants located in ranchi, Bengaluru, and Mangolpuri, which process about two lakh tonnes annually.
• A Nagpur milk processing plant is under construction with an investment of over Rs 500 crore; operations are expected to start by 2026.
• Mother Dairy recently launched idli-dosa batter in the Delhi-NCR market with strong consumer response; plans for a larger rollout will be decided by April requiring an additional Rs 5-10 crore investment.
• Expected turnover for FY 2024-25 is projected around Rs 17,500 crore,up from Rs 15,000 crore last year.

Indian Opinion Analysis

Mother Dairy’s strategic expansion into food processing through significant investments signals its commercial ambitions beyond dairy products. Thes developments could boost regional agricultural supply chains while bolstering employment opportunities in Gujarat and andhra Pradesh. The timeline-driven plan for the Itola facility reflects clarity on execution strategy. However, delays in land acquisition for the Kuppam facility illustrate potential challenges tied to bureaucracy.

The operational ramp-up of existing brands like Safal not only underscores diversification but aligns with broader consumer demands across urban areas. Meanwhile, initial success of newer product lines such as idli-dosa batter highlights adaptability.

With projected growth reaching above industry averages (15-16%), Mother Dairy’s initiatives could contribute positively toward India’s agribusiness landscape while paving pathways into global competitive scenarios around food security innovation. Success depends largely on implementation efficiency amidst institutional bottlenecks.

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