Parag Milk Foods Will Invest ₹100 Crore to Expand Paneer Capacity
Capacity expansion
Parag Milk Foods announced the proposed investment on September 21, 2026. The project will add roughly 60 metric tonnes per day through a mix of brownfield and greenfield work at Manchar in Maharashtra and Palamaner in Andhra Pradesh. Once commissioned, the company’s paneer capacity is expected to reach approximately 80 metric tonnes per day, compared with its current level of around 20 metric tonnes.
The company said its existing paneer plants are operating close to full capacity. Funding for the project is expected to come from a combination of internal accruals, borrowings and lease arrangements. The additional facilities are scheduled to become operational by June 2027.
Value-added dairy
Paneer is one of Parag Milk Foods’ main value-added dairy categories. The company said such products account for more than 90% of its total turnover, while its paneer business has grown by 28% over the past two years.
According to market data cited in the company’s disclosure, organised businesses represent an estimated 5–6% of India’s overall paneer market. The same disclosure cited an IMARC estimate that the market was worth approximately ₹73,140 crore in 2025. IMARC projects a value of about ₹2.15 lakh crore by 2034, with an estimated compound annual growth rate of 12.34% from 2026 to 2034.
Distribution plans
Parag Milk Foods plans to use the increased output to widen the availability of its regular and high-protein paneer products through its distribution network across India. The company listed General Trade, Modern Trade, Quick Commerce, E-commerce and HoReCa among the intended sales channels.
The company also said its branded paneer can have a shelf life of up to 75 days without preservatives, supported by its manufacturing and packaging technologies. It linked the expansion to growing consumer interest in protein-rich foods and packaged dairy products.
Rahul Kumar Srivastava, the company’s chief operating officer, said the higher production capability would support pan-India distribution and strengthen Parag Milk Foods’ position in value-added dairy through innovation and wider consumer access.
