Parag Milk Foods to invest ₹105 crore to double Go Cheese capacity by FY28

The dairy company plans to raise Go Cheese production from 60 to 120 metric tonnes a day by FY28, funded through internal accruals and debt, to serve growing retail and foodservice demand.

— Source publishedFri, 7 Aug, 2026, 17:13 IST·First seen Fri, 7 Aug, 2026, 17:16 IST·Source BL · Consumer & Economy

What happened

Parag Milk Foods will invest ₹105 crore to double Go Cheese manufacturing capacity to 120 mt/day by FY28, funded through internal accruals and debt, to meet

Key facts

  • ₹105 crore capex
  • Cheese capacity to double from 60 metric tonnes per day to 120 mt/day
  • Go Cheese approximately 35% market share
  • India cheese market projected to grow from ₹129 billion in 2025 to ₹620 billion by 2034

Why this matters

Parag’s expansion into higher-volume cheese production reinforces the strategic value of dairy adjacencies, foodservice partnerships and potential capability-led consolidation in branded dairy.

What to watch

  • Quarterly Go Cheese volume growth, market-share commentary and capacity-utilization disclosures.
  • Commissioning timetable and capex deployment versus the stated ₹105 crore budget.
  • Foodservice contract wins, QSR menu launches and institutional sales mix.
  • Milk procurement prices, skimmed milk powder and milk-fat price movements.
  • Go Cheese gross-margin/EBITDA trend and incremental debt levels or interest-cost growth.
  • Distribution expansion in quick commerce, modern trade and non-metro markets.
  • Competitive pricing and capacity additions by Amul, Britannia, Mother Dairy and private-label suppliers.
  • Expand Go Cheese SKUs and pack formats for mozzarella, slices, cubes, shredded cheese and value packs.
  • Increase foodservice and QSR supply contracts to secure baseline utilization before capacity commissioning.
  • Strengthen cold-chain distribution and deepen placement in quick commerce, modern retail and tier-2/3 cities.
  • Use promotions, recipe-led marketing and bundled dairy offers to increase household cheese penetration.
  • Add or diversify milk procurement arrangements to protect input availability and quality as cheese output scales.
  • Prioritize higher-margin branded retail mix versus lower-margin institutional volumes to protect returns on capex.

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