The company will raise cheese production capacity to 120 MT per day from 60 MT per day, with the expansion targeted for completion by FY28
Parag Milk Foods has approved a Rs 105 crore investment to double its cheese manufacturing capacity to 120 metric tonnes per day (MT/day) from the existing 60 MT/day, with the expansion expected to be completed by FY28.
The project will be funded through a mix of internal accruals and debt, the company said on Friday. The investment comes as Parag Milk Foods seeks to meet demand for cheese and whey protein products.
The company’s Go Cheese brand has around 35 per cent market share, according to Parag Milk Foods. It sells across general trade, modern trade, ecommerce and quick-commerce channels and also supplies institutional customers, including hotels, restaurants and catering businesses.
“Cheese is one of the key growth drivers for Parag Milk Foods and a strategic pillar of our value-added products portfolio. This Board approval marks another important step in our phased roadmap towards 120 MT per day and reflects our confidence in the long-term potential of the category. The additional capacity will enhance manufacturing efficiency, strengthen our ability to meet growing customer demand and support future product innovation,” Rahul Kumar Srivastava, Chief Operating Officer, Parag Milk Foods, said.
According to IMARC Group data cited by the company, the Indian cheese market is projected to grow from around Rs 129 billion in 2025 to Rs 620 billion by 2034, driven by urbanisation, changing food preferences and the expansion of organised food-service channels.
Parag Milk Foods’ cheese portfolio includes mozzarella, processed cheese, cheddar, slices, spreads, cubes, sauces, cream cheese and pizza cheese. The company also operates across dairy categories including ghee, dahi, paneer, liquid milk and UHT milk, besides whey protein through its Avvatar brand.
