Mother Dairy to invest Rs 750 cr to set up 2 dairy processing plants

Mother Dairy has set out a capital expenditure of over Rs 750 crore to enhance dairy and fruits and vegetables (F&V) processing capacities across key locations of India. The company will invest Rs 650 crore to set up two new plants for processing of milk as well as F&V to expand its business. Apart from new greenfield plants, it has pledged around Rs 100 crore to strengthen its capacities in its existing facilities.

To serve the markets of central and southern regions, Mother Dairy is coming up with a dairy plant in Nagpur, Maharashtra with an investment of around Rs 525 crore. The greenfield plant will have a processing capacity of six lakh litres of milk per day, which can be expanded up to 10 lakh lpd. The company will also commission a new fruit processing plant in Karnataka with an investment of over Rs 125 crore under its Safal brand. These two plants are expected to be completed in about two years.

At present, Mother Dairy has nine company-owned processing plants for dairy with a total milk processing capacity of more than 50 lakh litres per day. For the horticulture (fruits and vegetables) segment, the company has its own four plants, while for edible oils it manufactures through 15 associated plants. The company also has a diversified portfolio with products in edible oils under the ‘Dhara’ brand and fresh fruits & vegetables, frozen vegetables and snacks, unpolished pulses, pulps and concentrates.

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