In a significant product diversification initiative, Jaipur Dairy, operating under the trusted Saras brand, has announced the launch of its own line of traditional Indian sweets. The move comes alongside the commissioning of a ₹15 crore semi-automated sweets production facility, developed with the technical expertise of the Indian Dairy Machinery Company (IDMC) and equipped with SCADA (Supervisory Control and Data Acquisition) technology for efficient, hygienic manufacturing.
While Jaipur Dairy has officially positioned this move as an expansion into the value-added dairy space, Dairy Dimension’s analysis suggests a deeper strategic angle at play—one that mirrors the transformative approaches taken by industry leaders like Amul.
🧠 Dairy Dimension Insight: A Smart Solution for Surplus SMP?
Indian dairy cooperatives, including Jaipur Dairy, frequently encounter challenges related to the overproduction of SMP (Skim Milk Powder), particularly during peak procurement seasons. Excess SMP tends to sit in storage, tying up working capital and posing shelf-life risks.
From our perspective, the new sweets production unit offers a timely and tactical channel to absorb surplus SMP. Traditional Indian sweets, such as peda, burfi, and milk cakes, require high volumes of milk solids, making them an ideal category for converting low-margin powders into high-margin branded products.
This aligns with what Amul has done over the past two decades—transforming its milk procurement strength into a diversified range of consumer products, thereby de-risking its business model and expanding its brand footprint.
By entering the sweets segment now, Jaipur Dairy is not only meeting consumer demand for hygienic, ready-to-eat mithai but also positioning itself for long-term supply chain efficiency and improved price realisation for its dairy inputs.
“With Saras Sweets, the cooperative could convert dairy surplus into brand equity. This could be Jaipur Dairy’s smartest move yet,” observes a Dairy Dimension analyst.
