Parag Milk Foods announced on Tuesday plans to invest approximately 100 crore rupees to increase the production capacity for paneer cheese. Currently, the company's facilities produce 20 metric tons of paneer daily.
The expansion will be implemented by adding capacity of 60 metric tons per day at the plant in Manchar, Maharashtra, and at the unit in Palmaner, Andhra Pradesh. The new, expanded capacities will produce both regular and high-protein paneer, and they are expected to be operational by June 2027.
COO of Parag Milk Foods, Rahul Kumar Srivastava, stated that this increase will allow the total paneer capacity to grow from 20 to 80 metric tons per day with investments of approximately 100 crore rupees. He added that such scaling will help expand distribution across India and make paneer accessible through various sales channels.
According to management, there is a significant opportunity to strengthen the company's position in the value-added dairy segment through innovation, increased scale, and broader consumer access. The company notes that value-added products account for over 90 percent of turnover, and paneer is one of its key categories, showing annual growth of 28 percent over the last two years.
As demand shifts away from unorganized players, who hold only 5-6 percent of the category, towards organized companies, Parag is quadrupling its capacity to meet the growing demand for consistent quality and to expand its national presence in both standard and high-protein lines.