Parag Milk Foods to quadruple paneer capacity to 80 MT/day by June 2027

Parag Milk Foods will invest Rs 100 crore to add 60 MT/day of paneer capacity at its Manchar and Palamaner facilities, lifting total output from 20 MT/day to 80 MT/day. The move supports wider distribution across general trade, modern trade, quick commerce, e-commerce and HoReCa.

— Source publishedTue, 22 Sept, 2026, 15:35 IST·First seen Tue, 22 Sept, 2026, 16:36 IST·Source ET Retail

What happened

Parag Milk Foods will invest Rs 100 crore to add 60 MT/day paneer capacity at Manchar and Palamaner, taking total capacity to 80 MT/day by June 2027. The

Key facts

  • Rs 100 crore investment
  • Paneer capacity to rise fourfold to 80 MT/day from 20 MT/day
  • 60 MT/day additional capacity
  • Commissioning expected by June 2027
  • Paneer sales grew 28% annually over the past two years
  • Value-added products contribute over 90% of turnover
  • Paneer shelf life up to 75 days without preservatives
  • Indian paneer market valued at Rs 73,140 crore in 2025
  • Projected Indian paneer market of Rs 2.15 lakh crore by 2034
  • Projected market CAGR: 12.34%

Why this matters

By scaling paneer production at Manchar and Palamaner, Parag is deepening its value-added dairy platform and improving its strategic relevance across high-growth foodservice and omnichannel retail segments.

What to watch

  • Construction and commissioning milestones at the Manchar and Palamaner facilities before June 2027.
  • Quarterly paneer volume growth, capacity utilization and management commentary on ramp-up.
  • Milk procurement growth, farmgate milk prices and availability of milk solids.
  • Paneer pricing versus organized dairy competitors and local/unbranded suppliers.
  • New quick-commerce, e-commerce, modern-trade and HoReCa distribution partnerships.
  • Gross-margin movement and selling/distribution expense as chilled-network coverage expands.
  • Evidence of incremental market-share gains in value-added dairy and fresh cheese categories.
  • Expand paneer SKU portfolio across blocks, cubes, fresh paneer, high-protein and foodservice pack sizes.
  • Pursue national and regional listings with modern retailers, quick-commerce platforms and institutional/HoReCa buyers.
  • Strengthen chilled distribution, distributor refrigeration and last-mile cold-chain coverage in high-consumption metros and tier-1 cities.
  • Use higher paneer output to deepen farmer milk procurement and optimize milk solids allocation across cheese, paneer and other value-added dairy products.
  • Increase consumer marketing and in-store visibility for the Gowardhan brand, likely including recipe-led and convenience-focused campaigns.
  • Seek long-term supply arrangements with restaurant chains, caterers, hotels and cloud kitchens to underpin base-load capacity utilization.