Mother dairy – Having innovative ideas for the augmentation of its existing Business

Freshly, the Mother Dairy had started selling fresh lassi through the means of vending machines before the summer in order to encroach the soft drinks market in India.

It has been told by the dairy head of the Mother Dairy, Subhashis Basu that it took a span of two years for this Delhi based company to come up with this idea for the setting up of cold chain in respect for the sale of the dairy products. This ex-PepsiCo employee, Mr Basu, was motivated by the way the Fountain Pepsi had revolutionized the soft drink market.

It is reasonably the first time in India where  the Mother dairy is using the ‘bag-in-box model’ for the impairment of fresh lassi straight from the plant to the vending machines which is presently 50 in number in the colleges and the offices and will be 250 before the onset of summer.

The bag-in-box model is a flexible packaging format used in developed markets for transporting highly sensitive beverages such as the smoothies and milkshakes in which the bag with the beverage, residing within a cardboard box can be fitted into a specialized vending machine. The flavoured milk, lassi and buttermilk constitutes the main product segments under dairy beverages. Analytically it has been found that the total packed dairy beverages amounts to 527 million liters and are growing at a CAGR of 18%, where 60% has been accounted for the lassi and the buttermilk alone.

A short while ago the Dairy Business Head (Horticulture) of Mother Dairy , Pradip K Sahoo expressed the fact to PTI  that as the Mother Dairy had expected an annual turnover of Rs.630 crore in Horticulture in this fiscal , in the next fiscal they are targeting a turnover of Rs.700 crore from this division.

Of late, this wholly owned subsidiary of the National Dairy Development Board has been selling pulses, which is expected a higher turnover at all its Safal outlets situated in Delhi and the National Capital Region (NCR).The Mother Dairy which is the second biggest player after the Tata group in respect of the market for the branded pulses has been selling 400 variants of pulses in packets containing one kg each in the price range of Rs.48 to Rs.125 per kg.

Besides Horticulture which fetches half of its revenue, Mother Dairy possess three other Business segments namely milk, dairy and edible oils. It is in fact the single largest seller of milk and dairy products in the NCR.

On the month of February 2015, this subsidiary of the National Dairy Development Board, as the Mother Dairy Fruit and Vegetable Private Limited had been declared as to be the public authority under the Right to Information Act. This was the eventuality after the Mother Dairy Fruit and Vegetable Private Limited had challenged the Central Information Commission on April 15, 2011 in connection with the order which held to be as a Private Authority earlier.

As such the Central Government will be retaining the complete control over the NDDB and for all the practical purposes. As for the grounds of legitimacy, the High Court of New Delhi mentioned the fact that the union of the Mother Dairy as the wholly owned subsidiary of the NDDB was for the better management of certain undertakings.

In a word it can be stated that the Mother Dairy which had started to sell fresh lassi in vending machines before the summer season in 2015, seems to encroach the soft drinks market in India. It is the first time in India where the Mother Dairy is presenting the bag-in-box model for serving fresh lassi to its consumers. Besides the existing Dairy business, Mother Dairy also has three other segments of Business namely, milk, edible oils and Horticulture.

Horticulture will be yielding Rs.630 crore annual turnover and is known to generate half of the existing revenue of the Mother Dairy. On the month of Feb 2015, the Mother Dairy Fruits and Vegetable Private Limited had been declared as the Public Authority under the Right to Information Act.



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