Mother Dairy enters bread segment, aims Rs 25,000 crore turnover in next 5 years

Mother Dairy, a leading milk supplier in Delhi-NCR, forayed into bread segment as part of its strategy to diversify business, and announced its target to more than double its revenue to Rs 25,000 crore (US$ 3.55 million) in the next five years.

It launched three different type of bread- sandwich, brown and fruit and milk bread priced between Rs 15 (US$ 0.21) and Rs 40 (US$ 0.56). The breads will be available at its existing network of booths in Delhi-NCR.

“Mother Dairy already offers milk, butter, cheese, curd and fruits. With bread, we also want to raise awareness about breakfast and how it is the most important meal of the day. It has been found that one out of four Indians in metro cities, skip breakfast, which could lead to chronic diseases," said Mr Sangram Chaudhary, managing director at Mother Dairy Fruit and Vegetable Private Ltd.

The company has set a target of Rs 100 crore (US$ 14.19 million) revenue from bread segment over the next three years.

Mr Chaudhary said the newly introduced range will strengthens the company’s breakfast portfolio as a source of protein with low-fat content.

The bread market in India is estimated to be Rs 5,300 crore (US$ 751.88 million) currently and is expanding at an average growth rate of 10 per cent for last five years.

Mr Chaudhary said that the company has introduced around 20 new products in the market, including five types of sweets.

Consumption pattern has seen a change during the pandemic time as people are opting for home delivery of products.

Mr Chaudhary said, "The bread market in India is localised due to logistical and supply chain issues. With Mother Dairy, this has never been a challenge because of our existing network. Hence, having bread in our kitty was a natural fit."

Mr Sanjay Sharma, business head of dairy products, said “Breads are being currently manufactured by a third party and will be sold through 1,800 company outlets in the first phase. However, retail distribution network as well as product portfolio would be expanded based on customers' response.”

Mother Dairy was established in 1974 as a wholly owned subsidiary of the National Dairy Development Board (NDDB), under 'Operation Flood' initiative, world's biggest dairy development program launched to make India a milk-sufficient nation.

Currently, it has a portfolio in edible oils under Dhara and fresh fruits and vegetables and frozen vegetables under Safal brand, the bread launch comes close on the heels of the launch of Haldi Milk.
 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.