on Tuesday launched first-of-its-kind pouch packaging that naturally degrades into soil after transforming into a bioavailable wax, in line with its sustainability commitments. The wholly-owned subsidiary of National Dairy Development Board said it is witnessing strong summer sales growth of over 30 per cent. The company, which recently increased prices by ₹2 per litre, also said it has no intentions to take further price hikes.
The company is introducing this packaging innovation through its cow milk variant in Delhi-NCR beginning June 5, which contributes nearly 35 per cent to its milk sales in the region.
Speaking at the launch event in , Meenesh Shah, Chairman, National Dairy Development Board and Mother Dairy, said that the packaging innovation has been designed to naturally degrade in the soil within a few years rather than centuries and this transition is being taken without any impact on consumer milk prices. He said this is a key milestone considering India produces one-fourth of global milk production. “I don’t think there is any other packaging format available that can match the scale of pouch in terms of distribution efficiency and cost effectiveness. So it was important for us to innovate within the existing ecosystem while ensuring seamless consumer experience,” he added.
Responding to a query on milk production outlook for the year, Shah said, “ There is always a lean and flush season in the country as of now the same cycle is running. With forecasts related to El Nino, if there are lower than expected rains then it may impact production of green fodder in some areas where there could be some drop but other areas will make up for this. As of now the situation is comfortable and we do not see any challenges.”
Asked if the company will need to further increase prices due to higher input costs due to geopolitical volatility, he said, “If you see the pattern among organised dairy players, every year normally one price hike is taken. We have also taken a price hike last month due to sustained increase in farmer procurement prices. We have no intention to further increase the prices as of now. If there is a situation that arises due to input cost pressures then we will see.”
Meanwhile, Jayatheertha Chary, Managing Director, Mother Dairy said that the company undertook over four years of research to develop a naturally degradable milk pouch that leaves no trace of plastics in the environment with the ability to degrade into natural elements, thereby helping address the challenge of fugitive plastic.
“We are witnessing strong double digit growth in terms of summer sales of over 30 per cent. Overall we are targeting a growth of 20 per cent to reach revenues of ₹24,000 crore in FY27,” he noted.