Fortune India MPW 2026: India's milk demand is growing faster than supply, says Heritage Foods' Brahmani Nara

India's appetite for milk and dairy products is growing faster than the country's ability to produce them, creating a supply challenge that will require greater investment in farmer productivity, cattle health and rural infrastructure, according to Brahmani Nara, executive director of Heritage Foods.

Speaking at a panel discussion on 'Running Companies with Purpose' at Fortune India's Most Powerful Women (MPW) 2026 event, Nara said India has emerged as the world's largest milk producer, but supply growth is struggling to keep pace with rising demand for dairy products.

"India has come a really long way when it comes to milk production itself. Today, we are the largest producer of milk in the world, with 250 million metric tonnes of milk being produced every year," she said.

However, she cautioned that the industry faces a structural imbalance.

"The growth in demand that you're seeing for milk products is so much higher than the growth in supply that we're seeing in India, and that gap is what all stakeholders need to take very seriously," Brahmani said.

Farmer productivity remains the biggest opportunity

Nara said improving productivity at the farm level is critical to narrowing the demand-supply gap. According to her, Indian cattle currently produce only around five to six litres of milk a day, roughly 20-25% of the productivity levels seen in developed economies.

To address this, Heritage Foods works with farmers through subsidised animal feed and fodder, artificial insemination programmes, veterinary services and easier access to credit through partnerships with banks and NBFCs.

"Feed is directly correlated with the health of the animal and it also improves productivity. Artificial insemination programmes are important to create a whole new generation of healthier and more productive animals," she said.

The company currently procures 18-19 lakh litres of milk every day from a network spanning around 6,000 villages, building on a business that started 35 years ago with daily procurement of just 20,000 litres.

Value-added products fuel growth

Brahmani said Heritage's farmer-centric sourcing model has enabled the company to expand its portfolio of higher-margin value-added dairy products.

"We've been able to sustainably and profitably grow to revenues of about ₹4,500 crore, with value-added products contributing about 32.5% of revenue as of the last financial year," she said.

She added that the company's long-term ambition is to become "the most admired dairy nutrition company in India", while simultaneously doubling farmers' incomes through technology, better livestock management and improved market access.

"We've always been focussed on innovation. Most recently, we launched a whole new range of products under the Nourish Plus brand, comprising high-protein milk and paneer, with more products in the pipeline," she added.

On competition from overseas dairy brands amid India's expanding trade engagements, Brahmani said the industry's immediate priority should be strengthening domestic milk production rather than worrying about imports, stressing that meeting India's rapidly rising demand will require coordinated efforts from the private sector, farmers and the government alike.