Mother Dairy Fruit and Vegetable Private Limited

MOTHER DAIRY FRUIT AND VEGETABLE PRIVATE LIMITED
INTRODUCTION
Mother Dairy is a wholly owned subsidiary of the National Dairy Development Board which
is a statutory body under the ownership of the Ministry of Fisheries, Animal Husbandry and
Dairying of the Government of India that manufactures, markets and sells milk and dairy
products. Mother Dairy was founded in 1974, as a subsidiary of the National Dairy
Development Board (NDDB).
HISTORY
Mother Dairy was commissioned in 1974 as a wholly owned subsidiary of the National Dairy
Development Board (NDDB), under 'Operation Flood'. It was an initiative under Operation
Flood, a dairy development program aimed at making India a milk sufficient nation. Mother
Dairy sources a significant part of its requirement of liquid milk from dairy cooperatives and
village level farmer centric organizations.
It originally focused on Delhi and other parts of the National Capital Region (NCR), and has
1500 milk booths and 300 Safal outlets in the market. It later expanded to other regions in
India. It currently sells milk and milk products through 400 Safal outlets.
BRANDS AND SUBSIDIARIES
The company sells milk products under the "Mother Dairy" brand, and is a leading milk
supplier in Delhi-NCR, and sells around 30 lakh litres of milk per day in this region. It is also
offering milk and milk products.
Safal is the retail arm of Mother Dairy. It operates a large number of milk and milk product
stores in the NCR, and also has a significant presence in Bengaluru. Safal also has a plant in
Bengaluru, which produces around 23,000 MT of aseptic fruit pulp and concentrates
annually. It supplies milk and milk products to food processing companies such as Coca-Cola,
Pepsi, Unilever, Nestle, etc. Safal also has a presence across 40 countries viz., USA, Europe,
Russia, Middle East, Asia and Africa and exports fresh fruits and vegetables (grapes, banana,
gherkin, onion, etc.), fruit pulp & concentrate, frozen fruits & vegetables, etc. [citation
needed] It also added some limited sweets in its portfolio and had been expanding it
gradually.
It is first in the category in terms of milk and milk products ad for kids, are the three variants
launched by Mother Dairy as its breakfast basket in July 2020.Mother Dairy is only present
in dairy segment under the brand name Mother Dairy, which was launched under the
Operation Golden Flow program of NDDB. Mother Dairy opens first restaurant 'Café
Delights' in Noida and plans more outlets in Delhi.
DHARA
HISTORY
Launched in 1988, under the Operation Golden Flow´ program of NDDB, Dhara is today a Rs.
400 crore edible oil brand. It is one of India’s most trusted brands as it stands for purity,
freshness, taste and value for money. The creation of Dhara added value to the return of the
producers and provided a stable supply of quality oil to the consumers at a fair price. Dhara
was earlier manufactured by Dhara Vegetable Oil and Foods Company (DOFCO), a 100%
subsidiary of NDDB. However, with the merger of Mother Dairy Fruit & Vegetable Private
Limited (MDFVPL) and Dhara Vegetable Oil & Foods Company (DOFCO), the brand is today
manufactured and marketed by Mother Dairy. The move ensured greater value to Dhara
consumers by optimizing costs and offering flexibility on account of operating across the
value chain. This also helped to consolidate procurement and manufacturing functions
under one legal entity for better synergies. The merger helped maximize core competencies
in the areas of procurement, processing and marketing.
CURRENT SCENARIO
To meet the changing needs of the Indian consumers, Dhara continuously innovates to bring
new products and better packaging. Continuing with the trend, Dhara has recently
revamped its appearance to give the brand a fresh appearance. The logo and packaging
design of Dhara refined and filtered oils were modified in February 2009 to give it a more
contemporary look and feel, achieve a distinct USP vis-à-vis competition brands and to
standout against other players in the market. Dhara has been continuously satisfying the
needs of the consumers in different parts of the country through a range of high-quality
edible oils in various pack variants, covering refined mustard oil, Kachi Ghani mustard oil,
filtered mustard oil, refined sunflower oil, groundnut oil, refined soyabean oil & refined rice
bran oil apart from two blend variants. To ensure optimal health benefits, Dhara
recommends consumption of more than one oil to get balanced quantity of saturated,
monounsaturated and polyunsaturated fat required for the body, along with a variety of
micronutrients present in different oils. Research findings suggest that oils with high
monounsaturated fat are healthier. The production and packaging operations of Dhara are
strategically spread over major oilseed producing areas in Gujarat (Palampur, Rajkot and
Kandla), Rajasthan (Alwar and Bharatpur) and Karnataka.
Dhara uses sophisticated quality assurance instruments such as GLC, GCMS, HPLC, HPTLC,
Rancimat etc. to ensure that Dhara oils are 100 % pure. Moreover, the packing material
used for packing Dhara oils is food grade to ensure that the oil packed in it remains hygienic
and fresh for a long period.
1. Refined Oils
Refining process involves the removal of free fatty acids, phosphatides, colour bodies, Odors
and flavours thereby leaving behind a clear oil. Refined Vegetable Oil
 Refined Sunflower Oil

 Dhara Fit & Fine – Refined Soyabean Oil
 Dhara Fit & Fine – Refined Rice Bran Oil
2. Filtered Oils
They are obtained by mechanical pressing. Filtered oils have a darker, golden colour and a
characteristic flavour. Like groundnut flavour in expeller groundnut oil and pungent flavour
in Kachi Ghani Mustard Oil.
 Kachi Ghani Mustard Oil

 Groundnut Oil
 Mustard Oil
CHALLENGES FACED BY MOTHER DAIRY
1. Expanding into new geographies
Mother Dairy is looking forward for expansion into new geographies. Growth opportunity in
western and eastern areas and increased competition from smaller players has prompted
the company to look beyond Delhi NCR region. The company has drawn up a strategy called
`purab-paschim’ to expand its business into new geographies. Mother Dairy is also looking
to set up a plant for cut vegetables and fruits in Jharkhand for around USD11.75 million and
this will help the company to tap into the frozen fruits and vegetables business. Apart from
this, the company is working to revamp its Safal stores that currently sell vegetables and
fruits. In order to bring in modern retail practices in the stores, the company will be
spending around USD0.01-1.02 million. Presently, Safal is operating around 300 stores in
Delhi NCR, which contributes around 10% of its revenues, while
milk, edible oil and value-added dairy products make up rest of its portfolio. Expansion is not
so easy for the mother dairy as already there are big dairy brands in other big cities.
2. Competition with its own brand

In West Bengal A brand war has erupted in Bengal between the NDDB’s Mother
Dairy and the state- controlled Mother dairy Calcutta. NDDB’s subsidiary, Mother
Dairy Fruit and Vegetable Ltd, will market fresh milk, dahi, lassi, Ice cream in Bengal
under the Mother Dairy brand and also set up 100 exclusive retail outlets across the
state. Mother Dairy Calcutta has 450 outlets in state. NDDB firm would use a new
brand, Dailycious, to sell the fresh milk in Bengal.
3. Venturing into organic food
Mother Dairy, which has forayed into the organic food segment, plans to make Safal
Organic, a100 crore brand in the next three years. The company’s organic range
under Safal Organic includes fresh fruits and vegetables, pulses, rice, spices, millets,
dry fruits, wheat flour, besan, sugar, salt and flattened rice flakes (poha), in bio-
degradable and recyclable packages. Venturing into a new sector is a big challenge
for the mother dairy.
4. Hike in the price
As dairy farmers and dairy industry trying to cope with rising fodder prices and the
subsequent hike in milk procurement price. While some of the dairy players such as
Amul and Mother Dairy have recently increased raw milk prices stating farmer
interest in mind, it remains to be seen if others will follow suit; or even if Amul and
Mother Dairy go for the second round of price hike. Due to the delay in the
monsoon, the raw milk prices paid to farmers have gone up. The hike in price can
lower the demand of the consumers.
5. Maintaining healthy relationship with the farmers
The dairy farmers come to oppose the reduction in the procurement price of milk
from Rs 23 to Rs 21 per litre. While a Rs 2 per litre reduction might not look big, it is
important to note that there are 24 lakh dairy farmers in Karnataka alone and this
would have led to a 10% drop in their income. India is drowning in a problem of
plenty with regard to milk, as witnessed by the anguish of dairy farmers in Haryana.
Dairy farmers in the state used to get about Rs 25 per litre for cow milk and Rs 45 for
buffalo milk during summer season in 2014, whereas this season they have been
getting about Rs 25 and Rs 38, respectively though the feed cost has risen more than
20% in the last four years.
6. Dealing with the climate changes
The unusually hot summer of 2018 has proved challenging for farmers. The high
ambient temperatures and humidity seen this year, as well as extreme weather
conditions such as flooding, are a significant challenge to the future of farming.
Lactating cows initially respond to mild heat stress by sweating, panting, drinking
more, and seeking shade when possible. At higher temperatures cows eat less feed,
which leads to a fall in milk production. Cattle breeding for increased heat tolerance
is another potential, which could be beneficial for maintaining pasture-based
systems. In addition, changing the location of farming operations is another practice
used to address economic challenges worldwide.

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MOTHER DAIRY FRUIT AND VEGETABLE PRIVATE LIMITED

BRANDS AND SUBSIDIARIES

 Refined Sunflower Oil

 Kachi Ghani Mustard Oil

CHALLENGES FACED BY MOTHER DAIRY

1. Expanding into new geographies

2. Competition with its own brand

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