Parag Milk Foods will invest around ₹100 crore to expand its paneer manufacturing capacity from 20 metric tonnes per day to 80 metric tonnes per day at facilities in Manchar, Maharashtra, and Palamaner, Andhra Pradesh, with commissioning expected by June 2027.
The company said on Tuesday that the expansion will add 60 metric tonnes per day of capacity across the two facilities. The upgraded plants will manufacture both regular and high-protein paneer for distribution through the company’s pan-India network.
Parag Milk Foods COO Rahul Kumar Srivastava said the investment would support wider distribution and strengthen the company’s position in value-added dairy products. “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 with an investment of approximately ₹100 crore,” he said in a statement.
The investment will increase the company’s installed paneer capacity fourfold. Parag Milk Foods said paneer is one of its flagship categories and has grown at 28 per cent per annum over the past two years. Value-added products account for more than 90 per cent of the company’s turnover, according to the statement.
The expansion places manufacturing capacity at two locations in western and southern India. Manchar, in Pune district, is one of the company’s existing facilities, while Palamaner is located in Andhra Pradesh’s Chittoor district. The two-site expansion will support production and distribution across different regional markets once the new capacity is commissioned.
Parag Milk Foods said organised players currently account for only 5-6 per cent of the paneer category, as demand shifts from unorganised producers to companies offering standardised products. The company said the additional capacity is intended to meet this demand and widen access to both standard and high-protein paneer.
The company’s statement did not provide a facility-wise investment split, construction schedule or details of the expected employment impact. It said the expanded facilities are expected to be commissioned by June 2027.
