What began in 1974 as an effort to ease Delhi's milk-supply queues has grown into one of India's major dairy businesses. Mother Dairy, established under the National Dairy Development Board's Operation Flood, has evolved from milk vending booths into a business with ₹20,300 crore in FY26 revenue.
The first Mother Dairy booths opened on November 4, 1974, in Defence Colony and RK Puram Sector 4. The Delhi plant was commissioned in December that year with a processing capacity of 4 lakh litres per day, while bulk vending machines replaced the glass bottles used under the earlier Delhi Milk Scheme.
From 'Metal Buffalo' to a Delhi Habit
The token-operated vending machines became popularly known as 'lohe ki bhains' or 'metal buffalo'. The system provided customers with a standard quantity of milk at the same price and helped Mother Dairy establish a direct connection with Delhi households.
Five decades later, Mother Dairy supplies approximately 55 lakh litres of fresh milk every day, including around 35 lakh litres in Delhi-NCR, according to the report.
Expanding Beyond Milk
Mother Dairy gradually expanded beyond liquid milk into a broader dairy portfolio. Ice cream was introduced in 1995, while curd, flavoured yoghurt, paneer, ghee, butter, lassi and flavoured milk subsequently became part of the portfolio.
The company also operates businesses beyond dairy through Dhara edible oils and the Safal fruit-and-vegetable chain. In 2020, it entered the restaurant segment with its first Café Delights outlet in Noida.
Building a Brand Around Trust
The company's brand communication has consistently linked Mother Dairy with themes of care, family and trust. Campaigns such as #KhushbooApnepanKi and the 2024 #MaaJaisi campaign extended this positioning across different generations.
More recently, the company has targeted younger consumers through flavoured-milk and ice-cream campaigns, while continuing to invest in brand-building and integrated media. WPP Media renewed its integrated media mandate with Mother Dairy through 2030, according to the report.
Packaging Innovation Enters the Story
Mother Dairy has also used sustainability and packaging innovation as part of its brand strategy. In June 2026, the company introduced what it describes as India's first naturally degradable milk pouch in soil, initially for its flagship Cow Milk in Delhi-NCR.
The launch began with nearly 2 million packs, while the company also introduced a refreshed design system intended to create greater consistency across its milk portfolio.
₹20,300 Crore Revenue in FY26
Mother Dairy closed FY26 with revenue of ₹20,300 crore, up from ₹17,500 crore in the previous year, marking the company's first year above the ₹20,000 crore revenue milestone.
Dairy contributed more than ₹15,000 crore, while edible oils and horticulture contributed nearly ₹5,000 crore, according to the report.
Delhi-NCR continues to account for around 63% of revenue, supported by more than 800 milk booths. The company's wider network now extends to more than 95 cities, 16 states and approximately 4 lakh retail outlets.
Next Target: ₹24,000 Crore
Mother Dairy is targeting revenue of more than ₹24,000 crore in FY27, representing a planned increase of around 20%.
The company is also planning new manufacturing facilities in states including Maharashtra and Bihar, as it seeks to expand beyond its traditional Delhi-NCR stronghold.
From a handful of milk booths introduced to solve Delhi's milk-supply challenges in 1974, Mother Dairy has built a multi-category food business spanning dairy, edible oils and horticulture. Its next phase will focus on translating that long-established consumer relationship into growth across a wider national market.
Source: Dairynews7x7 30 Sep, 2026 Read full story here
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