Mother Dairy aims to become a retail giant

Komal Amit Gera / Chandigarh June 10, 2010, 0:10 IST

Mother Dairy, one of the country’s largest milk processors, plans to roll out a chain of exclusive retail
outlets, named ‘Gaurav Stores’, to market the entire range of its products across India.

According to company sources, it has planned to launch 350 exclusive stores in New Delhi and 200
retail outlets in Mumbai in the first phase, to be expanded later in all major cities.

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The company owns a network of booths in Delhi to market the dairy products. The new concept has
been introduced to create a better brand and street visibility, to consolidate its position in the wake of
growing competition.

According to Sanjay Sinha, Head (Milk and Dairy Products Business) of Mother Dairy Fruit and
Vegetable Ltd, the entire retail operation would be conducted through the franchise route.

He said the first phase should be implemented by the year-end and the final course of action for
phase two would be decided after the completion of phase one. The products would be available at
the multi-brand retail chains and standalone kirana stores, too, but the ‘Gaurav Stores’ would be a
one-stop shop for all Mother Dairy products.

Purnendu Kumar of Technopak, a prominent retail consultancy firm, is of the view that the foray of
large companies such as Reliance Retail and Birla Retail, and that of local progressive dairy farmers’
unions in various pockets who, with the assistance of nationalised banks are mulling to set up retail
outlets, might be the cause of concern for players like Mother Dairy to take prior initiatives to
strengthen presence in the growing market.

Mother Dairy registered year-on-year growth of 30 per cent on product business and 10 per cent
growth of milk business last year. The new branding initiatives are a must to face the stiff
competition, said Kumar.

He said it processed 3.2 million litres of milk every day and had sufficient capacities to meet the
demand for the next few years.

Ice-cream of importance
Mother Dairy also has seven ice-cream plants and nine milk processing plants in Delhi and two milk
processing units in Andhra Pradesh. They are associated with over 100,000 farmers in Uttar
Pradesh and Andhra Pradesh, whom they provide extension services to get the required quality of
milk, he said