Parag Milk Foods Ltd plans to invest around Rs 100 crore to expand its paneer manufacturing capacity from the current 20 MT per day to 80 MT per day across its facilities at Manchar in Maharashtra and Palamaner in Andhra Pradesh.
The expanded facilities will manufacture both regular and high-protein paneer and are expected to be commissioned by June 2027.
Paneer is one of the company’s key value-added dairy categories and has recorded annual growth of around 28 per cent over the past two years. Value-added products currently contribute more than 90 per cent of Parag Milk Foods’ turnover.
The investment builds on the company’s focus on technology-led innovation in fresh dairy products. Parag’s branded paneer offers a shelf life of up to 75 days without preservatives, supported by advanced manufacturing and packaging technology.
The company sees significant growth potential in the organised paneer market. While paneer is among the largest dairy categories in India, organised players currently account for only around 5-6 per cent of the market, with a large proportion of sales still taking place through the unorganised sector.
Parag Milk Foods expects rising consumer preference for branded, packaged and standardised dairy products to accelerate the shift towards organised players. By quadrupling its paneer capacity, the company aims to strengthen its national presence across both standard and high-protein offerings.
The additional capacity will also support wider distribution through General Trade, Modern Trade, Quick Commerce, E-commerce and HoReCa channels.
The company said its manufacturing scale, pan-India distribution network and packaging technology will enable paneer to be transported over longer distances while maintaining product freshness and quality.
Rahul Kumar Srivastava, COO, Parag Milk Foods, said the company is adding 60 MT per day of capacity, taking its total paneer capacity from 20 MT to 80 MT per day.
He said the expansion would help Parag strengthen its pan-India distribution and make its paneer portfolio available across a wider range of channels.
The investment forms part of Parag Milk Foods’ broader strategy to expand high-growth value-added dairy categories, strengthen its flagship brands and develop differentiated products through innovation, scale and wider consumer access.