June 2, 2021
Mother Dairy has huge plans that it will implement by next quarter, it aims to start direct deliveries of vegetables and fruits through its Safal retail franchise, starting in Delhi-NCR, upping the stakes for online greengrocers in an environment where buyers choose doorstep service for their daily necessities.
Manish Bandlish, Managing Director of Mother Dairy said that this is a critical growth lever and it’s something they have never done before. “We have 350-400 outlets in Delhi-NCR in ideal locations, every 2 kilometers or so, which we will leverage,” he added.
Safal will deliver directly from stores rather than through a centralised model, which is a first for the company. Bandlish stated that the company intends to employ the hyperlocal delivery model for last-mile orders, utilizing the booth concessionaires’ services. It will not necessitate the hiring of more personnel.
The model is ready and tested and will be piloted in the next three months, by which time ideally the Covid situation will have eased out. For its Safal franchise, the firm partnered with Zomato last year to deliver fruits and vegetables to customers’ homes in the Delhi NCR.
MDFVL, a wholly-owned subsidiary of the National Dairy Development Board (NDDB) that works under brand name Safal, has a diverse franchise under which it offers milk, ice cream, curd, and flavoured desserts, as well as edible oil Dhara, fresh fruits and vegetables, frozen vegetables, lentils, and honey.
By 2025, e-groceries might account for 3% of India’s grocery business, or $24 billion in market value, according to RedSeer Consulting. E-commerce will be a major area and Mother Dairy is considering launching online-only products for e-commerce and modern trade. Before expanding into new markets, the corporation will attempt to enhance its position in existing markets. Unlike last year, supply chains ran smoothly this time.
Mother Dairy’s ice-cream company, to be sure, has been hit hard during the peak season, with sales down 30-40%, according to Bandlish. “In the ice cream sector, excess capacity is underutilized and is clearly a negative mark on our balance sheet.