Dairy farmers | Mother Dairy to focus on increasing market share in organised ghee segment

Dairy farmers can bolster margins by as much as £30,099 per year according to new analysis on the economic value of the UK’s chief breeding index Profitable Lifetime Index (£PLI) which is worth £1.58 in pre-tax profit for every point of PLI.

Leading milk supplier Mother Dairy on Monday said it will focus on increasing its market share in the organised ghee segment, having an estimated market size of Rs 40,000 crore, by expanding retail chain distribution five times over the next few years. At present, Mother Dairy sells ghee through 10,000 retail stores in 150 towns.

The company plans to expand its presence to 200 towns and 50,000 retail outlets over the next few years, the company said in a statement.

Sanjay Sharma, Business Head – Dairy Products, Mother Dairy Fruit & Vegetable Pvt Ltd said, “Mother Dairy has stepped-up focus on the ghee category and has plans to outpace the industry growth rate in the next 3 years. Our efforts are aligned towards clocking a growth rate of more than 20 per cent, compared to the industry’s growth rate of 13 per cent”.

The company has plans to strengthen its presence across the ghee consumption markets, including Uttar Pradesh, Maharashtra, and Haryana, along with its home turf Delhi-NCR.

“According to IMARC Group Report 2020, ghee represents the largest consumed dairy product (21 per cent) in India after liquid milk,” he said.

Like most of the other dairy categories, the ghee market in our country is largely occupied by unorganised players.

“However, the organised ghee market, in 2019, was valued worth over Rs 400 billion and is expected to clock a healthy CAGR of around 13 per cent during 2020-2026,” Sharma said.

The availability of ghee will also be enhanced across many leading e-commerce channels.

Mother Dairy was commissioned in 1974.

It is now a wholly-owned subsidiary of the National Dairy Development Board (NDDB).

Mother Dairy is a leading dairy player that manufactures, markets and sells milk and milk products, including cultured products, ice creams, paneer, ghee, etc. under the ‘Mother Dairy’ brand.

It sells edible oils under the ‘Dhara’ brand while fresh fruits and vegetables, frozen vegetables and snacks, unpolished pulses, pulps and concentrates, etc. are marketed under the ‘Safal’ brand.

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Dairy farmers, Dairy industry

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