Mumbai : Dairy products manufacturer Parag Milk Foods Ltd. has approved an investment of ₹105 crore to double its cheese manufacturing capacity from 60 metric tonnes per day (MT/day) to 120 MT/day, as the company seeks to capitalise on rising demand for value-added dairy products.
The expansion is expected to be completed by FY28 and will be financed through a combination of internal accruals and debt.
Focus on Value-Added Dairy
The company said the planned capacity expansion is part of its strategy to strengthen its value-added dairy products portfolio and support growth across both retail and institutional markets.
Parag Milk Foods markets its cheese portfolio under the Go Cheese brand, which the company says has around 35% share of India’s domestic cheese market.
Its products are distributed through multiple channels, including:
- General trade
- Modern retail
- E-commerce
- Quick commerce
- Hotels, restaurants and other food-service businesses
Cheese Capacity to Double
The planned investment will increase cheese production capacity from:
60 MT/day to 120 MT/day
The additional capacity is expected to improve manufacturing efficiency while allowing the company to respond to increasing demand from retail and institutional customers.
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Parag Milk Foods offers a broad cheese portfolio, including mozzarella, processed cheese, cheddar, slices, spreads, cubes, sauces, cream cheese and speciality cheese solutions.
Riding India’s Value-Added Dairy Growth
The company said the investment will also support new product development and innovation as India’s cheese market continues to expand.
The move reflects a broader shift in India’s dairy industry towards value-added products, where categories such as cheese, whey protein, yogurt and other processed dairy products offer opportunities for higher margins and stronger consumer engagement compared with conventional liquid milk.
For Parag Milk Foods, doubling cheese capacity is therefore not merely a manufacturing expansion but a strategic push to strengthen its position in one of India’s fastest-growing value-added dairy categories.
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