Sanjiv Khanna, former MD of Mother Dairy and who is currently serving as CEO of SBC Beverages Ghana (marketers and manufacturers of PepsiCo products), is being brought in to replace Nagarajan
The milk portfolio accounts for a little over 70 per cent of its annual earnings but its contribution to overall sales is poised to fall to around 60 per cent by 2018-19 as sales of its value added dairy products pick up
Mother Dairy said that they have increased farm prices by about Rs 2.5 – Rs 3 a kg over July and compared to last year the prices are up by Rs 5 - Rs 6 a kg.
Mother Dairy has bought an old plant in Nagpur and is spending Rs10-15 crore to revamp it. It is also setting up milk procurement facilities in the area that is estimated to cost around Rs 30 crore.
Amul had increased the procurement price for cow milk by 10 percent to Rs 30 a litre and buffalo milk to Rs 41-42 a litre in the past one month and may increase it further.
Dailry milk cooperatives such as Karnataka Milk Federation, Mother Dairy and Amul are expecting to overcome the problem by transferring the money of the farmers to their bank accounts directly.
s a part of its business strategy, company is chalking down the plans to venture and explore the markets of Nagpur, Pune, Aurangabad and Nashik and also of some other cities of Maharashtra.
The hike in price came after 24 months. Last month, India’s leader in dairy products, Amul also took the similar call and increased the milk prices by Re 1 for both one and half litre pouch in Delhi NCR region.