Mother Dairy is a popular food brand in India that produces as well as offers milk products across India. We will now see the SWOT analysis of Mother Dairy in detail along with the additional details of the company.
About Mother Dairy
Mother Dairy is the most trusted and famous milk brand in India and offers a diverse range of products like paneer, yogurt, frozen yogurt, ghee, etc. The brand also offers frozen vegetables, new soil products, jams, pickles, and much more.
The company is a top supplier of the milk across Delhi-NCR region. Each day, the company sells approximately 30 lakh liters of milk per day in this region.
Mother Dairy at a Glance
| Owner |
|
| Key People | Manish Bandlish (Managing Director) |
| Year of Establishment | 1974 |
| Annual Revenue (as of FY23) | Rs.14,500 crore |
| Origin | Noida, India |
| Total no. of employees | Approx. 5,000 |
Products of Mother Dairy
- Milk
- Dairy Products
SWOT Analysis of Mother Dairy
The SWOT analysis of Mother Dairy helps understand the company’s strengths, weaknesses, hazards, and opportunities.
Let’s start now!
Strengths of Mother Dairy
Mother Dairy holds the major strengths in –
1. Strong support from farmers & a wide presence
Mother Dairy is strongly supported by the dairy and vegetable farmers in the Delhi NCR region. This offers a comparatively economical supply of raw materials. Also, the company deals with milk as well as various milk products like ice creams, paneer ghee culture products, and much more. Under its label Dhara, the company also sells edible oil, fruits, vegetables, pulses, and much more. It helps the company get more popularity in India.
2. Trusted brand image
The company has great goodwill and trust in the customers as the brand offers milk each day. The company has a very deep connection to the people at a deeper level. Also, the brand has been deeply connected with Indians and is closely attached to the sentiments of Indian customers in all of its product verticals.
Weaknesses of Mother Dairy
The major weaknesses of Mother Dairy include –
1. Localization
The milk market is basically local due to its perishable characteristics. To target larger markets the company should focus more on the localisation of its business.
2. Reduced per capita milk consumption
India is the largest consumer and producer of milk but the per capita consumption of milk is very low. It makes it very significant for dairy companies to increase their presence in all the mentioned categories which are truly expensive for the business.
3. Distribution prices
The mother dairy products are perishable and need to be frozen for better distribution. This increases the expense of freezing the products. It eventually impacts the distribution cost to a greater extent.
4. Packaging
Numerous products of the brand are perishable in nature as they are made up of milk and need a lot of care. Therefore, it is recommended that a lot of research needs to be performed on the product’s packaging that can make them stay longer time and should be as fresh as possible. Also, some latest technology for storage and packaging needs to be applied.
Opportunities for Mother Dairy
The top opportunities for Mother Dairy involve –
1. Greater market potential in India
Today, most consumables in India are on the peak and the increasing population in the country is giving birth to higher demand. As per the recent report, the dairy market in India is approximately 80,000 crores INR which is a huge share.
2. Favorable climate
The climate of India is very favorable towards agriculture and the food processing industry receives a lot of benefits due to this. This gives the company a big opportunity to expand its customer base and enhance its revenue.
Threats to Mother Dairy
Mother Dairy faces major threats including –
1. Constraints to market entry
There exist no barriers to entry in the dairy industry leading to the development of new competitors. This causes a threat to the brand. There are a number of new entrants due to which the costs are reduced and they are approaching customers actually at domestic as well as global levels. Moreover, few of the most famous brands in the dairy market are directly aligned with the products.
2. High debt
At present The Mother Dairy company is dependent on high debt which should decrease as soon as possible to avoid high interest costs. Moreover, there is a greater bargaining capacity with respect to the customers which affects the product pricing.
3. Government & environmental concerns
Mother Dairy should also consider environmental and safety areas to sustain itself properly in the dairy market. The constantly changing regulations as well as strict rules are among the major threats for the company. Also, the sustainability Trend is on the pic across the world which may affect the image of the brand negatively. Therefore, the company may face criticism from environmental influences which will finally lead to reduced sales.
Top Competitors of Mother Dairy
Here are the top 5 competitors of Mother Dairy –
1. Amul
It is India’s largest dairy cooperative and is a direct competitor of Mother Dairy in the dairy products segment.
Nestle is a world leader in food & beverage products and is the major competitor of Mother Dairy in the dairy and food sector.
3. Britannia Industries
It is a major competitor to Mother Dairy and offers different products like yogurt, cheese, butter, and much more.
4. Parag Milk Foods
With its Gowardhan & Go Cheese products, the company competes with Mother Dairy in the dairy & cheese sectors.
5. Kwality Dairy
It is a major player in the dairy segment and offers products like milk, butter, cheese, and ghee.
Conclusion
Mother Dairy is among the top Indian brands in the dairy market. It has a very strong distribution network and is among the most trusted brands in the Indian market. The company faces numerous challenges in terms of competition as well as changing customer preferences. By consistently focusing on innovation and expanding in health-conscious products Mother Dairy can continue to grow and make its market presence stronger.
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