Mother Dairy to expand into bread and sweets as it looks to move beyond dairy

The company will expand its reach of the new product after gauging the response of first phase, under which 1,800 stores in Delhi NCR will retail the new category.

Dairy major Mother Dairy has announced its foray into bakery and confectionery business and has said that it will soon launch three varieties of bread in Delhi NCR. The FMCG company looks to These three variants are Brown bread, sandwich bread and milk and fruit bread, Sangram Chaudhary, managing director, Mother Dairy Fruit & Vegetable Private Limited, told reporters at a virtual event on Thursday. The company will expand its reach of the new product after gauging the response of first phase, under which 1,800 stores in Delhi NCR will retail the new category. Of Rs 5,000 crore worth bread market , Mother dairy is looking at Rs 100 crore business for now as the category is highly competitive.

“This is the first time we are entering in bakery segemnt. We wanted to be very sure and have placed the product in 1,800 outlets which are visited by customers every day. We will assess the response and in phase 2, we will expand out of Delhi NCR,” Sanjay Sharma, business head — dairy products, Mother Dairy said at the event. In the first half of second year, we will expand retail business. In the meanwhile, the company is going to announce about six new products in the coming time in nutrition and immunity categories.

The newly launched bread portfolio will be available in four SKUs — Sandwich bread 500 gms pack to retail for Rs 30, sandwich bread 700 gms pack will be available for Rs 40, brown bread in 400 gms packaging to cost Rs 30 and fruits and milk bread will be available at Rs 15 for a 150 gms packaging. Currently, Britannia, Bonn Group, English Oven, Harvest Gold are some of the bread makers in India. Gujarat-based dairy major Amul had also recently launched its bread range in select cities.