Parag Milk Foods to invest ₹100 crore to quadruple paneer capacity to 80 MT/day

Parag Milk Foods Ltd on Monday (September 21) said it plans to invest approximately ₹100 crore to expand its paneer manufacturing capacity to metric tonnes per day from the existing 20 metric tonnes per day across its facilities at Manchar in Maharashtra and Palamaner in Andhra Pradesh.

The expansion is planned for the financial year 2027-28. Parag Milk Foods said the investment will be funded through internal accruals, borrowings or lease. The expanded facilities will produce both regular and high-protein paneer and are expected to be commissioned by June 2027, the company said.

Value-added products contribute more than 90% of Parag Milk Foods’ turnover, while paneer is one of its flagship categories and has grown 28% over the last two years. The company said the investment builds on its technology-led innovation in fresh paneer.

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Parag’s branded paneer has a shelf life of up to 75 days without preservatives, enabled by its manufacturing and packaging technology.

The company said it plans to use its manufacturing capabilities and pan-India distribution network to expand the availability of paneer across General Trade, Modern Trade, Quick Commerce, e-commerce and Hotel, Restaurant and Catering (HoReCa) channels.

The expansion will cover both standard and high-protein paneer ranges. Parag said the investment is part of its strategy to build scale in high-growth value-added categories, strengthen its flagship brands and develop differentiated products through innovation.

Rahul Kumar Srivastava, COO, Parag Milk Foods Limited, said, “Paneer is an important part of the Indian consumer’s diet. We have the manufacturing excellence to maintain the freshness and quality of paneer over an extended period. We are pleased to announce our plan to add 60 MT/day of capacity, taking our overall paneer capacity from 20 MT/day to 80 MT/day.ALSO READ | Parag Milk Foods bets on new-age businesses to power next phase of growth

This scale-up will allow us to expand our pan-India distribution and make our paneer available across distribution channels. We see a significant opportunity to strengthen our position in value-added dairy through innovation, scale and wider consumer access.”

Shares of Parag Milk Foods Ltd ended at ₹272.70, up by ₹4.60, or 1.72%, on the BSE.