After launching ice creams and curds in the Mumbai market, the Rs 5,500-crore Mother Dairy is now getting set to flood the Western metropolis with fruit yoghurts and sweetened curd ( mishti doi ) this summer.
It's all part of the company's strategy to build up presence in the West. Currently 80 per cent of Mother Dairy's sales come from northern India.
Mr Subhashis Basu, Business Head, Dairy Products, Mother Dairy Fruit & vegetable says, “We have been primarily a Delhi-centric company all these years and now it is time to replicate the success in Delhi to Mumbai and develop the same kind of leadership in this market.''
But unlike in the north, where Mother Dairy has the advantage of its milk booths and retail outlets (almost 30 per cent of sales comes from the booths), it may be tough for the company in other markets as it has to build a cold chain and retail network first.
Mr Basu says Mother Dairy has been slowly building up its distribution network in Mumbai market and its curds and ice creams now reach 4,000 outlets across the city. It has set up four production facilities in the region. The company claims to have achieved a 20 per cent share in the curd category and a 10 per cent share in ice creams in the Mumbai market.
Yoghurt Plans
The next challenge, Mr Basu, says is to introduce its fruit yoghurts in Mumbai where MNCs like Nestle and Danone already have a strong play. “Unlike plain Curd, flavoured Yoghurt is a nascent category estimated between Rs 10 crore and Rs 15 crore and our job is to expand the category, more than eating into the pie of competitors,” he says. According to him, consumption of flavoured yoghurt in Mumbai is less than one tonne per day.
It is betting on its pricing strategy to woo the market, pegging its offering at Rs 18 for 100gms (Danone's premium yoghurt, Cremix is at Rs 20, while Nestle's yoghurt is at Rs 23).
Going forward Mother Dairy intends going regional with its offerings. “In a market like Mumbai, it would be about catering to consumer tastes.
Once we have rolled out the existing range of products, we could look at having region specific products,'' added Mr. Basu.