New facilities planned in Gujarat and Andhra Pradesh; Nagpur milk plant to start by 2026
Mother Dairy, one of India’s leading dairy and food processing companies, has announced an investment of approximately ₹600 crore to establish two new fruit and vegetable processing plants in Gujarat and Andhra Pradesh. The expansion is aimed at strengthening its Safal brand’s processing capabilities and enhancing supply chain efficiency.
According to Mother Dairy Managing Director Manish Bandlish, the company will invest over ₹400 crore in a new plant at Itola, near Baroda, Gujarat. The facility is expected to be completed within two years. The second plant, planned for Kuppam, Andhra Pradesh, will require an investment of ₹150-200 crore. However, work on the Andhra Pradesh plant is yet to commence as the company awaits land allocation from the government.
Currently, Safal operates three fruit and vegetable processing plants in Ranchi (Jharkhand), Bengaluru (Karnataka), and Mangolpuri (Delhi), handling about two lakh tonnes of produce annually.
Alongside its investment in fruit and vegetable processing, Mother Dairy is also expanding its dairy operations. The company is setting up a new milk and dairy processing plant in Nagpur with an investment of over ₹500 crore. This facility is expected to be operational by 2026, further strengthening Mother Dairy’s footprint in India’s dairy sector.
In addition to infrastructure expansion, Mother Dairy recently launched an idli-dosa batter in the Delhi-NCR market. “The response has been very positive, with sales reaching one tonne per day,” Bandlish said. Currently available at Safal booths, the company will decide in April whether to roll out the product on a larger scale, which would require an additional investment of ₹5-10 crore.
Mother Dairy, a subsidiary of the National Dairy Development Board (NDDB), expects a turnover of approximately ₹17,500 crore in the 2024-25 fiscal year, marking a 15-16% increase from ₹15,000 crore in the previous year.
With these strategic investments, Mother Dairy aims to strengthen its market presence and cater to the growing demand for processed food and dairy products in India.