Parag Milk Foods Ltd. plans to invest approximately ₹100 crore to expand its paneer manufacturing capacity from 20 metric tonnes per day (MT/day) to 80 MT/day, strengthening its presence in India’s organised dairy market.
Expansion Planned at Maharashtra and Andhra Pradesh Facilities
Parag Milk Foods announced plans to add 60 MT/day of paneer production capacity across its Manchar facility in Maharashtra and its Palamaner unit in Andhra Pradesh. The expanded facilities are expected to be commissioned by June 2027.
The new production capacity will support the manufacturing of both regular paneer and high-protein paneer, enabling the company to cater to a broader range of consumer preferences and growing demand for protein-rich dairy products.
Company Targets Growing Demand for Paneer
According to the company’s statement, paneer is one of its flagship product categories and has recorded annual growth of 28% over the past two years.
The company believes the expansion will help strengthen its pan-India distribution network and improve product availability across multiple sales channels. The increased capacity is also expected to support the wider distribution of both standard and high-protein paneer varieties.
Organised Dairy Market Presents Growth Opportunities
Parag Milk Foods stated that value-added products contribute more than 90% of its total turnover, highlighting the importance of these products to its business strategy.
The company also pointed to the growing shift in consumer demand from unorganised paneer suppliers towards organised manufacturers. According to the company’s statement, organised players account for only 5–6% of the paneer category, indicating significant potential for expansion.
By increasing its production capacity fourfold, Parag Milk Foods aims to meet rising demand for consistent product quality while expanding its national market presence.
What the Expansion Means for the Dairy Industry
The planned investment reflects the growing importance of organised dairy processing, product innovation and protein-focused food products in India. The addition of high-protein paneer to the expanded production portfolio also highlights the industry’s focus on offering products that align with changing consumer preferences.
The project’s expected commissioning by June 2027 will be an important milestone in the company’s efforts to scale up its paneer business and strengthen its position in the value-added dairy segment.
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