SECTOR
Parag Milk Foods to invest Rs 100 crore to expand paneer manufacturing capacity
Sep-22-2026

Parag Milk Foods is planning to invest around Rs 100 crore to expand its paneer manufacturing capacity from existing 20 MT/day to 80 MT/day at Manchar (Maharashtra) and Palamaner (Andhra Pradesh). The expanded facilities will produce 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 and Paneer is one of its flagship categories which is growing by 28% over the last two years. The investment builds on Parag’s technology-led innovation in fresh paneer. Its branded paneer offers a shelf life of up to 75 days without preservatives, enabled by its advanced manufacturing and packaging technology.

Parag 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. The combination of manufacturing scale and packaging innovation will support distribution of branded paneer over longer distances and across channels, while maintaining the freshness and quality consumers expect. The investment is part of Parag's strategy to build scale in high-growth value-added categories, strengthen its flagship brands and create differentiated products through innovation. It also responds to rising consumer preference for branded, packaged and standardised products.

Parag Milk Foods, established in 1992, is the largest private dairy FMCG Company with a Pan India presence.


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