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Mother Dairy focuses on east; eyes Rs 7,000 crore biz by FY16

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KOLKATA: Mother Dairy, a wholly-owned subsidiary of the National Dairy Development Board, which launched its dairy whitener, under the ‘Dailycious’ brand in Kolkata, is expecting volumes to go up and cross the Rs 100 crore mark following the new launch. At present, the company reports about Rs 30 crore business annually from its dairy business in the east.

Additionally, the company is looking at an overall organisational business of nearly Rs 7,000 crore by the end of this financial year (2015-16), up from Rs 6,300 crore reported last year. The company is expecting a growth rate of around 11 per cent in the current fiscal.

“At Mother Dairy, it has been our constant endeavour to offer exceptional value to consumers, and this has been the core of our products. Carrying on the same ethos, the dairy whitener is being launched under the Dailycious brand. It will be made available through a wide network of distribution channels of nearly 10,000 outlets, including retail and model retail formats across the region,” said Mother Dairy business head (dairy products) Subhashis Basu.

The company plans to penetrate in the eastern and north-eastern states through the category by offering the product at lower price points compared to other existing players. It has chosen the eastern states to launch the product as this zone is milk-deficient and consumes it in big scale, he hinted.

The company has lined up similar rollout plans for other cities and important markets across the country. The dairy whitener market is pegged at Rs 2,000 crore with east and the north east markets accounting for 50 per cent of the total, he said.

Initially, besides West Bengal, Dailycious would be launched in the North East, Bihar, Odhisha and Kerala, he said. “Whitener products will be manufactured from our new plant at Etawah in Uttar Pradesh, where we have made an investment in excess of Rs 150 crore,” Basu added.

The eastern states contribute to 45 per cent of the total market, said Basu. According to him, the company is eyeing a five per cent market share by this fiscal. The products will be available from 14 April. 

Basu also informed that dairy products like fresh milk, ice cream, butter milk and lassi among others, contributes to about 80 per cent of the company’s total revenue.

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