Parag Milk Foods to double Go Cheese capacity to 120 tonnes a day by FY28
Parag Milk Foods will invest ₹105 crore in a brownfield expansion to raise cheese production from 60 to 120 metric tonnes per day, supporting growing retail and food-service demand for Go Cheese.
What happened
Parag Milk Foods will invest ₹105 crore in brownfield expansion to double cheese capacity to 120 tonnes daily by FY28. The move supports Go Cheese’s retail and
Key facts
- ₹105 crore investment
- Cheese production capacity to double to 120 metric tonnes per day
- Current capacity: 60 metric tonnes per day
- Go Cheese market share: 35%
- Project completion by FY28
- Indian cheese market projected from ₹12,900 crore in 2025 to ₹62,000 crore by 2034
- India per-capita cheese consumption: around 200 grams
- Global average per-capita consumption: 7 kg
- Urban India consumption: about 700 grams per person
- Initial cheese capacity in 2008: 40 metric tonnes per day
Why this matters
Go Cheese’s expansion underscores cheese as a strategic growth category, potentially increasing Parag Milk Foods’ scale and leverage with retail and food-service partners.
What to watch
- Quarterly Go Cheese volume growth, revenue growth and management commentary on capacity utilization.
- Disclosure of food-service/QSR customer wins, long-term supply contracts or geographic distribution expansion.
- Milk procurement prices, skimmed milk powder and milk-fat trends, which will determine gross-margin conversion.
- Construction milestones, commissioning schedule and whether the full 120 tonnes-per-day target remains on track for FY28.
- Cheese realization trends, promotional intensity and gross-margin movement versus the company’s dairy portfolio.
- Growth in organized pizza, café, quick-service restaurant and modern retail demand in India.
- Any revised capex guidance, debt increase or working-capital build associated with the expansion.
- Secure multi-year milk procurement and milk-fat supply arrangements to protect input availability as cheese output scales.
- Pursue anchor food-service and QSR contracts, particularly for mozzarella and bulk formats, ahead of FY28 commissioning.
- Expand cold-chain reach, distributor throughput and modern-trade shelf presence in underpenetrated cities.
- Increase retail SKU mix in slices, shredded cheese, cubes and snacking formats to raise realization per kilogram.
- Use brownfield execution to minimize commissioning disruption and provide phased capacity additions if demand ramps unevenly.
- Watch for competitor capacity additions or promotional activity from Amul, Britannia, Mother Dairy and private-label suppliers.