GRB Dairy Foods Private Ltd, a Bengaluru-based dairy company, has grown into a ₹1,010-crore enterprise with a dominant presence in India’s ghee market. Established in 1984, the company started with a small retail presence and gradually expanded through strong distributor networks and strategic branding. GRB is investing ₹100 crore to expand its Nilakottai factory in Tamil Nadu, aiming for ₹1,500 crore in revenue by FY26.
GRB Dairy Foods Private Ltd, a Bengaluru-based dairy company, has emerged as a major player in India’s ghee market, growing into a ₹1,010-crore enterprise. Founded in 1984 by GR Balasubramaniam, the company initially faced challenges convincing retailers to stock its ghee. However, a strong distribution network, strategic branding, and a focus on quality helped GRB carve out a significant market share. Now, the company is investing ₹100 crore to expand its Nilakottai factory in Tamil Nadu, with completion expected by FY26.
A Humble Beginning to Market Leadership
Balasubramaniam started his business by selling butter door-to-door in Bengaluru. To extend the product’s shelf life, he decided to convert the butter into ghee, a move that would later define GRB’s success. Initially, retailers were hesitant to stock branded ghee, as most customers preferred buying it from local dairies. However, after one shopkeeper decided to give GRB a chance, word-of-mouth helped the brand grow.
By the early 1990s, GRB’s ghee had gained a strong presence in key retail markets of Bengaluru and Chennai. To solidify brand recognition, Balasubramaniam launched ‘Udhayam’ in Tamil Nadu and ‘GRB’ in Karnataka. The expansion into a distributor-based model further boosted sales, leading to the establishment of a dedicated production unit in Hosur in 1999.
Scaling Up and Diversification
GRB now operates six ghee production plants across India. Apart from ghee, the company has diversified into instant mixes, sweets, masalas, and snacks. The Nilakottai factory in Tamil Nadu plays a crucial role in its expansion plans, producing sweets and snacks to complement its dairy segment.
The company holds a strong market share, with 27.8% in Karnataka, 24.7% in Tamil Nadu, 21.3% in Andhra Pradesh, and 28.5% in Telangana. With a presence in 39 countries, GRB aims to expand to 50 nations by the next financial year.
Future Growth and Expansion Plans
Ghee remains GRB’s flagship product, contributing 75% of total revenue. The company is targeting ₹1,500 crore in revenue by FY26, backed by increased production capacity and a growing export market, which currently generates ₹100 crore in revenue.
As ghee consumption in India continues to rise, GRB Dairy Foods is poised for further growth. However, competition from emerging direct-to-consumer brands is intensifying, making innovation and distribution efficiency key to maintaining its leadership position.
