Parag Milk Foods gains on plan to quadruple paneer capacity to 80 MT/day

Parag Milk Foods advanced 1.14% to Rs 273.70 after the company announced plans to quadruple its paneer manufacturing capacity from existing 20 MT per day to 80 MT per day.

The company plans to invest approximately Rs 100 crore in the expansion, which will be undertaken at its 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.

Value-added products contribute more than 90% of the company's turnover, with paneer being one of its flagship categories. The company said its paneer business has grown 28% over the past two years. Its branded paneer has a shelf life of up to 75 days without preservatives, supported by its manufacturing and packaging technology.

The company said that demand for paneer is shifting from unorganised to organised players, which account for only about 5-6% of the category today, as consumers look for higher and more consistent quality. To capitalise on this shift, it is quadrupling its capacity.

The company said that it will use its manufacturing capabilities and pan-India distribution network to make paneer more widely available across general trade, modern trade, quick commerce, ecommerce and HoReCa. Its manufacturing scale and packaging technology would enable wider distribution while maintaining product freshness and quality.

According to IMARC report, the Indian paneer market was valued at Rs 73,140 crore in 2025 and is projected to reach Rs 2.15 lakh crore by 2034, growing at a CAGR of 12.34% between 2026 and 2034.

Rahul Kumar Srivastava, COO, Parag Milk Foods, said: ?Paneer is an important part of the Indian consumer?s diet. We have the manufacturing excellence to maintain the freshness and quality of paneer over an extended period. We are pleased to announce our plan to add 60 MT/day of capacity, taking our overall paneer capacity from 20 MT/day to 80 MT/day. This scale-up will allow us to expand our pan-India distribution and make our paneer available across distribution channels. We see a significant opportunity to strengthen our position in value-added dairy through innovation, scale and wider consumer access.?

Parag Milk Foods is the private dairy FMCG company with a pan-India presence. The company offers traditional products like ghee, dahi, paneer, liquid milk, etc. under brand Gowardhan?, and products like cheese, UHT milk, buttermilk, lassi, flavoured milk shakes, etc. under the brand name Go?. Pride of Cows?, the flagship brand of the company based on proposition of farm to home ? single origin concept targeting customers seeking premium quality dairy products. The company is also present in Whey Protein based sports nutrition under the brand Avvatar.

The company has reported 20% fall in consolidated net profit to Rs 22 crore despite a 11% increase in revenue to Rs 945 crore in Q1 FY27 as compared with Q1 FY26.

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