Mother Dairy is preparing for its next phase of expansion with a stronger focus on value-added dairy products, geographic expansion and investments across its dairy, horticulture and edible-oil businesses. Managing Director Jayatheertha Chary said the company is targeting more than 20% growth in turnover during FY2026-27, taking the figure to approximately ₹24,000 crore.
The company has more than doubled its turnover over the past five years, from slightly above ₹10,000 crore in FY2020-21 to more than ₹20,000 crore in FY2025-26. The latest growth strategy is intended to build on this expansion while reducing the company’s dependence on its traditional Delhi-NCR dairy market.
Value-Added Dairy Becomes a Major Growth Driver
Value-added dairy products currently account for approximately 25% of Mother Dairy’s overall dairy business and grew by around 25% during FY2025-26.
According to Chary, the company aims to increase the contribution of value-added dairy to around 40% of its overall dairy business over the next three years.
The strategy reflects changing consumption patterns in India, where consumers are increasingly purchasing products such as paneer, cheese, curd, ghee and ice cream alongside traditional liquid milk.
Mother Dairy plans to strengthen existing categories while expanding its presence in products where it sees additional growth potential.
Expansion Beyond Delhi-NCR
Delhi-NCR remains an important market for Mother Dairy, but the company has been steadily increasing its presence in other parts of India.
Chary said the share of the company’s dairy business generated outside NCR has increased from approximately 25% to 38% over the past five years.
Mother Dairy has expanded into markets including Gujarat, Jaipur and Jodhpur in Rajasthan and Tirupati in Andhra Pradesh. The company now plans to increase its presence in additional markets, with Maharashtra, Uttar Pradesh, West Bengal, Bihar and Telangana identified among its focus areas.
The expansion will involve deeper distribution, wider product availability and greater use of new-age retail channels.
Product Innovation Across Dairy Categories
Mother Dairy is also using product innovation to expand its presence across different dairy consumption occasions.
Its portfolio includes products such as Token Milk, Cow Milk, Probiotic Curd and Drinks, Mishti Doi and Tadka Chaach. The company is also increasing its manufacturing capabilities in established categories.
In the butter segment, Mother Dairy has commissioned a new table butter manufacturing line in Gujarat and is expanding its portfolio with butter chiplets.
The company has also expanded its cheese portfolio with Mozzarella. Its milk-based ice cream business sees approximately 20 new product launches each year across formats including cups, cones and bars.
₹2,000 Crore Investment Programme
To support its growth plans, Mother Dairy is investing more than ₹2,000 crore across its three business verticals: dairy, horticulture and edible oils.
The dairy expansion includes processing facilities across Uttar Pradesh, Punjab, Maharashtra, Telangana and Bihar. The company’s horticulture business is also receiving investments through facilities in Andhra Pradesh and Gujarat, while an edible-oil packaging plant is planned in Maharashtra.
These investments are designed to increase production capacity while supporting the company’s geographic expansion.
Mother Dairy’s Growth Roadmap
| Growth Area | Current/Planned Position |
|---|---|
| FY2025-26 Turnover | More than ₹20,000 crore |
| FY2026-27 Target | ₹24,000 crore |
| Targeted Turnover Growth | More than 20% |
| Current Value-Added Dairy Contribution | Around 25% |
| Value-Added Dairy Target | Around 40% within three years |
| Non-NCR Dairy Contribution | 38% |
| Planned Investment | More than ₹2,000 crore |
| Key Focus Markets | Maharashtra, UP, West Bengal, Bihar, Telangana |
Marketing Strategy Expands With National Ambition
As Mother Dairy expands geographically, the company is also increasing its marketing presence across traditional and digital platforms.
The company has invested in major sporting properties including the ICC Men’s Cricket World Cup, ICC Champions Trophy and IPL, alongside entertainment-focused partnerships and digital initiatives.
According to Chary, the objective is not simply to increase advertising expenditure but to connect with consumers across different categories and consumption occasions. The company is also looking to engage younger consumers and encourage greater adoption of its dairy products.
Building a Multi-Brand Food Business
Mother Dairy’s broader strategy extends beyond its flagship dairy brand. The company is also leveraging its Safal and Dhara businesses as part of its wider growth plans.
Safal provides the company with a presence in horticulture and fresh produce, while Dhara operates in the edible-oil segment. Investments across these businesses are intended to create additional production capacity and strengthen the company’s presence across multiple food categories.
Chary said the company’s farmer network, procurement capabilities, manufacturing footprint and distribution infrastructure provide the foundation for its expansion.
With value-added dairy expected to become an increasingly important contributor to revenues, Mother Dairy is positioning the next stage of its growth around product diversification, national distribution and increased manufacturing capacity.
The company’s FY2026-27 target of ₹24,000 crore turnover, combined with its planned investment of more than ₹2,000 crore and three-year ambition to raise value-added dairy’s contribution to around 40%, marks a significant expansion phase for the dairy business.
