The company’s board has approved an expansion of cheese production capacity from 60 metric tonnes per day (MT/day) to 120 MT/day. The expansion is expected to be completed by FY28 and will be funded through a combination of internal accruals and debt.
The capacity expansion is part of Parag Milk Foods’ strategy to strengthen its value-added dairy portfolio and create additional capacity to cater to growing demand for cheese and whey protein.
Cheese is a key business for the company, with its Go Cheese brand commanding around 35% market share, according to the company. Parag Milk Foods supplies cheese to institutional customers, including hotels, restaurants and catering businesses, while also selling through general trade, modern trade, e-commerce and quick-commerce channels.
The company’s Go Cheese portfolio includes mozzarella, processed cheese, cheddar, cheese slices, spreads, cubes, sauces, cream cheese, pizza cheese and specialty cheese products catering to both retail and food-service customers.
The company cited industry estimates from IMARC Group, which peg the Indian cheese market at around ₹12,900 crore in 2025, with the market expected to reach approximately ₹62,000 crore by 2034. Rising urbanisation, changing food preferences and the expansion of organised food-service channels are expected to drive growth in the category.
Rahul Kumar Srivastava, Chief Operating Officer, Parag Milk Foods, said cheese is one of the company’s key growth drivers and a strategic pillar of its value-added products portfolio.
He said the board approval represents another step in the company’s phased roadmap to reach 120 MT per day of cheese production capacity. The additional capacity is expected to improve manufacturing efficiency, help the company meet customer demand and support new product development.
Expanding the value-added dairy portfolio
Parag Milk Foods has built its business around value-added dairy products, with brands including Gowardhan, Go, Pride of Cows and Avvatar.
Gowardhan offers products such as ghee, dahi, paneer and liquid milk, while Go includes cheese, UHT milk, buttermilk, lassi and flavoured milk products. Pride of Cows is positioned as a premium farm-to-home dairy brand, while Avvatar operates in the sports nutrition segment with whey protein products.
The company operates manufacturing facilities at Manchar and Thorandale in Maharashtra and Palamner in Andhra Pradesh. It also operates Bhagyalaxmi Dairy Farm, which houses more than 5,000 cows and uses automated milking processes.
The latest investment comes as dairy companies increasingly focus on value-added categories such as cheese, whey protein and other nutrition products, which offer opportunities to diversify beyond traditional dairy products and potentially improve product mix.
For Parag Milk Foods, doubling cheese capacity is expected to strengthen its position in the rapidly expanding cheese market while supporting growth across both consumer and institutional channels.