New launches to boost Mother Dairy's business

Milk and Dairy products major, Mother Dairy Fruits and Vegetables Private Limited (MDFVPL), is eyeing the Rs 2,000 crore dairy whitener market in a big way. The company today launched its dairy whitener brand - "Dailycious' in the eastern region.

"The diary whitener market is a Rs 2,000-crore category which has been growing very fast, like all other Mother Dairy products, I am confident that this will meet and exceed the consumer expectations on key product attributes such as colour, taste, miscibility and cuppage," said Subhashis Basu, Business Head, dairy products, Mother Dairy Fruit & Vegetable Pvt. Ltd. According to market estimates, the category is growing at 15 percent CAGR. Amulya from Amul and Everyday from Nestle India Ltd are the dominant brands in the market.

Mother Dairy will capitalise on Dhara oil's (Dhara is also a Mother Dairy brand) marketing and distribution channel and dealers for promotion and sales of 'Dailycious' brand in the region. While the product is currently being launched in the eastern region, it would be available nationally in the coming months.

"Dailycious will be made available through a wide network of distribution channel of close to 10000 outlets including retail and modern retail formats across the region," said Basu. "Forty-five percent of whitener consumption happens in the region."

Beside this, the company will enter into other value added dairy categories like ultra heated milk and beverages like milk shakes, lassi, buttermilk and dairy cream segment. The beverages will be available in tetrapacks. The products which are being test marketed will be launched in the second week of April.

"The salient feature about the products are that these are not dependent on the cold chain network, " said Basu. The company has recently invested Rs 150 crore in building a plant in Etawah where all the products will be manufactured.

All these launches will add Rs 200-250 crore to the company's topline within next one year. Basu said that the company will earn a turnover a Rs 7,000 crore turnover for the current fiscal as compared to Rs 6,300 crore last year.