A scorching summer is good for dairy product makers. The capital's corporate milkman is betting on this for high growth.
Mother Dairy, the wholly owned subsidiary of the National Dairy Development Board (NDDB) with sales in excess of Rs. 5,200-crore, plans to double its dairy products turnover by the end of the fiscal year 2013-14, aided by ready-to-eat kheer and fruit yoghurt on which rival brands such as Amul and Danone have pushed ahead in the past one year.
“By 2013-14, dairy products will be Rs 1,100 crore business for the company from Rs. 550 crore today. We plan to achieve this by adding capacities and expanding pan-India distribution and marketing,” Subhashis Basu, business head, dairy products, Mother Dairy, told HT.
The dairy products division is growing at a 35% annual clip and 13 new ice cream derivatives are planned to keep up the momentum.
“With rise in incomes, the demand for protein intake will go up. We expect that huge demand will come from first-time consumers. I believe, this is the most exciting time in dairy products business,” Basu said.
In India, the per capita consumption of dairy products does not exceed 300 millilitres per annum, compares with Europe’s 9 litres and US’ 12 litres, say officials of Mother Dairy, which plans to fan into Kolkata and southern India next year.
Mumbai is the next stop.