Parag Milk Foods Invests Rs 100 Crore in Paneer Expansion

Parag Milk Foods is committing an investment of approximately Rs 100 crore to scale up its paneer manufacturing operations significantly. This strategic move aims to boost production capabilities across key regional facilities by June 2027.

Key Numbers And Expansion Targets

• Investment amount: Rs 100 crore
• Capacity expansion: From 20 MT/day to 80 MT/day
• Target commissioning date: June 2027
• Paneer category growth rate: 28% over the last two years
• Value-added product share: More than 90% of turnover
• Product shelf life: Up to 75 days without preservatives

The capital outlay will directly expand manufacturing at Manchar in Maharashtra and Palamaner in Andhra Pradesh. These upgraded facilities will manufacture both regular and high-protein paneer variants to meet rising market demand.

Strategic Growth In Value-Added Dairy

Value-added items drive the core of the business, currently generating over 90% of the total turnover. Paneer stands out as a flagship category, posting a growth rate of 28% over the past two years.

• Manufacturing focus on regular and high-protein paneer.
• Advanced technology enabling a 75-day shelf life without chemical preservatives.
• Distribution scaling across General Trade, Modern Trade, Quick Commerce, Ecommerce, and HoReCa channels.

Established in 1992, Parag Milk Foods operates as the largest private dairy fast-moving consumer goods company with a pan-India presence. The company aims to capture rising consumer preferences for branded, packaged, and standardised goods through this infrastructure push.