Mother Dairy to Focus on Boosting its Market Share in the Organized Ghee Sector

Mother Dairy, a leading milk supplier, said on Monday that it will focus on boosting its market share in the organized ghee segment, which has an estimated market size of Rs.40000crore, by extending retail chain distribution five times over the next several years. 

Mother Dairy currently offers ghee through 10,000 retail outlets in 150 locations. Over the next three years, the firm wants to expand its footprint to 200 towns and 50,000 retail shops, according to a statement. 

"Mother Dairy has increased its focus on the ghee category and intends to surpass the market growth rate in the next three years," said Sanjay Sharma, Business Head Dairy Products, Mother Dairy Fruit & Vegetable Pvt. Ltd. Our efforts are aligned towards clocking a growth rate of more than 20 per cent, compared to the industry's growth rate of 13 per cent". 

The company intends to expand its footprint in ghee consuming regions such as Uttar Pradesh, Maharashtra, and Haryana, in addition to its home turf Delhi-NCR. 

"According to the IMARC Group Report 2020, ghee is the second most consumed dairy product in India (21%) after liquid milk," he added. 

Like most of the other dairy categories, the ghee market in our country is largely occupied by unorganized players. 

"However, the organized ghee industry was valued at over Rs.400 billion in 2019 and is likely to grow at a robust CAGR of over 13% during 2020 - 2026," Sharma added. 

Ghee will also be more widely available through a variety of top e-commerce channels. 

 Mother Dairy was commissioned in 1974. It is presently the National Dairy Development Board's (NDDB) wholly owned subsidiary. 

Mother Dairy is a renowned dairy company that makes, promotes, and distributes milk and milk products under the 'Mother Dairy' brand, such as cultured products, ice creams, paneer, ghee etc. 

It markets edible oils under the 'Dhara' brand, while fresh fruits and vegetables, frozen vegetables and snacks, unpolished pulses, pulps and concentrates etc. are sold under the 'Safal' brand.