NDDB to merge Mother Diary and Dhara subsidiaries

24 March 2008

New Delhi: The boards of  Mother Dairy Fruit & Vegetable (MDFVL) and Dhara Vegetable Oil & Foods Company (DOFCO) have approved the merger of MDFVL and DOFCO, in order to make them more competitive.

The two companies, which are wholly-owned subsidiaries of National Dairy Development Board (NDDB), will be merged as part of an internal restructuring exercise their operations consolidated in order to capitalise on their synergies.

Mother Dairy India CEO Paul Thachil said, ''The reason for the merger is to consolidate procurement and manufacturing functions under one legal entity for better synergies. The arrangement resulting from the merger would help maximise core competencies in the areas of procurement, processing and marketing.''

The merger is reported to be aimed at creating a leaner organisation and simplifying accounting procedures, since operating as individual entities did not serve any purpose.

Moreover, the NDDB is of the view that the  competitive environment for dairy co-operatives has changed dramatically both in India and globally with the  increasing withdrawal of tariff protection, and compelling co-operatives to change and adapt.

Mother Diary, a subsidiary company of of the National Dairy Development Board manufactures and markets a wide range of dairy products such as butter, dahi, ghee, cheese, UHT milk, dairy whitener, lassi and flavoured milk. Mother Dairy's dairy products are available in the markets of northerm India, eastern India, Mumbai, and Port Blair.