Parag Milk Foods plans to invest approximately ₹100 crore to expand its paneer manufacturing capacity fourfold to around 80 MT per day from the existing 20 MT per day.
The expansion will add approximately 60 MT per day through brownfield and greenfield initiatives at the company’s facilities in Manchar, Maharashtra, and Palamaner, Andhra Pradesh. The expanded facilities will manufacture both regular and high-protein paneer and are expected to be commissioned by June 2027.
The company said its existing paneer capacity is operating close to full utilisation. The investment will be financed through a combination of internal accruals, borrowings and leasing arrangements.
Paneer is one of Parag Milk Foods’ flagship value-added dairy categories and has grown 28% over the past two years, according to the company. More than 90% of its turnover comes from value-added products.
The expanded capacity is expected to support wider distribution of Parag’s branded paneer across general trade, modern trade, quick commerce, e-commerce and HoReCa channels. The company also plans to scale both its regular and high-protein paneer offerings.
Parag said its paneer products have a shelf life of up to 75 days without preservatives, supported by its manufacturing and packaging technology. The company expects the capacity addition to support its strategy of increasing scale in value-added dairy products amid rising demand for branded and packaged paneer.