1 month ago
Dairy Industry Bets on Value-Added Products for Growth
The dairy industry in India is focusing more on value-added products like raita, custard, and paneer to grow.
These products are more profitable and give companies more control over prices.
Companies like Mother Dairy and Amul are investing in research and new products to meet changing consumer needs.
They are also expanding their reach and improving their supply chains.
The market for these value-added products is growing fast, and companies are seeing higher profits from them.
This shift is helping the dairy industry become more competitive and innovative.
Dairy companies are focusing on value-added products like raita, custard, and paneer to drive growth.
Mother Dairy's revenue from value-added products increased from Rs 10,450 crore in FY20 to Rs 20,300 crore in FY26.
The organised dairy market for value-added products grew from Rs 85,000 crore in FY20 to Rs 1.46 lakh crore in FY25.
Companies are investing in innovation and expanding their product portfolios to meet changing consumer preferences.
Value-added products offer higher margins and more pricing power compared to commoditised milk.
- Who
- Dairy companies like Mother Dairy, Amul, Hatsun Agro Product, Milky Mist, and Godrej Jersey
- What
- Shift towards value-added dairy products like raita, custard, ghee, buttermilk, lassi, paneer, and whey
- Where
- India, with a focus on urban and modern trade markets
- When
- Current and projected growth in the value-added dairy segment
- Why
- Higher disposable incomes, stronger cold chain networks, and easier access through modern trade and quick commerce
Key facts
- Global Milk Production
- 24% from India
- Mother Dairy Revenue (FY26)
- Rs 20,300 crore
- Value-Added Products Revenue (FY20)
- Rs 10,450 crore
- Organised Dairy Market (FY25)
- Rs 1.46 lakh crore
- Hatsun Agro Product Revenue (FY26)
- Rs 9,973 crore
- Milky Mist Revenue (FY25)
- Rs 2,350 crore
- India's Protein Supplements Market (2025)
- $912.9 million
- Amul's Daily Milk Procurement
- 35 million litres
Quotes
Jayatheerttha Chary
MD, Mother Dairy Fruit & Vegetable
“Value addition starts with milk and moves to butter, ghee. These (value-added products) have worked out very well, and now there is a big focus on protein.”
businesstoday.in
“Liquid milk will be important, but our focus is on building a stronger value-added product portfolio that would give consumers more reasons to choose us.”
businesstoday.in
R. G. Chandramogan
Chairman, Hatsun Agro Product
“You must be dominant in a market. We have 23 factories across six states. It helps in reducing costs and reaching the consumer.”
businesstoday.in
“The challenge there lies in deeper discounts and longer credit. It makes direct selling a much better proposition.”
businesstoday.in
Sources
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