Mother Dairy Bets on Premium Push, Market Expansion for Growth

Mother Dairy Fruit & Vegetable Pvt Ltd is sharpening its focus on premiumisation and expansion into new markets as it looks to drive growth amid evolving consumer preferences and rising competition, Managing Director Jayateertha Chary said.

The company is also strengthening its distribution network and ramping up presence on quick commerce platforms to tap into changing buying patterns. “We are confident of growth through expanded geographies, channels, and new products,” Chary noted.

Mother Dairy, which operates across dairy, edible oils, fresh produce, and ice cream, expects robust demand recovery after a slow start to the summer season due to early rains. With temperatures rising, the company anticipates strong momentum in ice cream sales, projecting growth of up to 35–40% in the category.

The company reported a 17% year-on-year revenue growth in FY 2025–26, reaching ₹20,300 crore, driven by demand for value-added dairy products and cooking oils. It is now targeting over 20% growth, aiming for revenues of around ₹24,000 crore in the coming fiscal.

To support expansion, Mother Dairy has outlined a capital expenditure plan of approximately ₹2,000 crore, focused on widening its distribution footprint and strengthening its position as a national player. The company also plans to launch over 30 new products, with a strong emphasis on health, wellness, and premium offerings.

While input cost pressures persist, particularly in packaging and energy, the company has undertaken internal efficiency measures and logistics optimisation to limit price increases to select products.

A wholly owned subsidiary of the National Dairy Development Board, Mother Dairy continues to expand its portfolio through brands such as Safal and Dhara, supported by an extensive network of processing and associated plants across India.