Mother Dairy, a wholly-owned subsidiary of the National Dairy Development Board, is projecting a 5% volume growth by the financial year 2027. The company is actively working to transform its brand perception, moving beyond its traditional stronghold in the Delhi-NCR region to establish a stronger national presence.
Meenesh Shah, chairman of NDDB and Mother Dairy, emphasized the strategic shift: "We want to change the perception of Mother Dairy as the NCR brand." He highlighted the company's existing significant presence in non-NCR markets such as Mumbai and Hyderabad, and recent expansions into Rajasthan and Bihar, underscoring a concerted effort to deepen its footprint across India.
Navigating Rising Input Costs
Like many industries, Mother Dairy has faced increasing input costs, particularly influenced by global events such as the West Asia war, which has contributed to higher fuel prices. Shah noted a nearly 30% surge in packaging material costs. Despite these challenges, the company has managed to absorb these costs without significant disruption to supply or consumer prices.
In response to the escalating expenses, Mother Dairy implemented a price hike of Rs 2 per litre for milk in May. However, Shah confirmed that there are no immediate plans for another price increase, stating, "We don’t plan to take another price hike," despite continued increases in fuel prices affecting logistics.
Pioneering Eco-Friendly Packaging and Product Innovation
In a significant environmental initiative, Mother Dairy recently introduced India's first naturally degradable milk pouch. This innovative packaging, designed to decompose in soil within a few years instead of centuries, will initially be rolled out for the cow milk variant across Delhi-NCR. Shah clarified that this transition would not lead to an increase in consumer milk prices, with the additional packaging cost being absorbed by the company as part of its environmental commitment.
Beyond packaging, Mother Dairy is also adapting its product portfolio to evolving consumer preferences. Shah cited 'Promilk,' a higher-protein milk variant, as an example of the company's continuous efforts to cater to changing dietary habits and health consciousness among consumers.
Addressing concerns about the potential impact of El Nino on milk output, Shah expressed confidence in India's vast dairy landscape. He stated that localized production dips in certain regions would likely be offset by robust output in other parts of the country, ensuring overall stability in milk supply.