Company targets paneer capacity of 80 MT/day by June 2027 and cheese capacity of 120 MT/day in FY28.
MUMBAI: Parag Milk Foods Limited has approved an investment of approximately ₹205 crore to expand its paneer and cheese manufacturing capacities, strengthening its focus on value-added and protein-led dairy products.
Approved on November 3, 2026, the projects include a ₹100 crore paneer expansion and a ₹105 crore cheese expansion. The company plans to increase paneer capacity from 20 MT/day to 80 MT/day by June 2027 and double cheese capacity from 60 MT/day to 120 MT/day during FY28.
₹100 crore investment to expand paneer capacity
The company will invest approximately ₹100 crore to expand paneer manufacturing capacity at its Manchar and Palamaner facilities.
The expansion will increase installed capacity from 20 MT/day to 80 MT/day, adding 60 MT/day. The additional capacity will support the production of both regular and high-protein paneer.
Parag expects the expanded paneer capacity to be commissioned by June 2027. The investment follows the company’s highest-ever quarterly paneer volumes in Q2 FY27, which it attributed to increasing demand for branded paneer and growing consumer interest in protein-rich foods.
₹105 crore investment to double cheese capacity
Parag has also approved approximately ₹105 crore for expanding its cheese manufacturing capacity from 60 MT/day to 120 MT/day.
Also Read: Hassan Milk Union Chief Warns Proposed Price Revision Could Lead to ₹8.5 Crore Monthly Loss
The project will add another 60 MT/day of capacity, with completion targeted for FY28. The company has not disclosed a specific commissioning month or a plant-wise breakdown of the investment.
Planned capacity expansion
| Product | Existing capacity | Planned capacity | Additional capacity |
|---|---|---|---|
| Paneer | 20 MT/day | 80 MT/day | 60 MT/day |
| Cheese | 60 MT/day | 120 MT/day | 60 MT/day |
Both projects add the same absolute capacity, but paneer capacity will increase fourfold, while cheese capacity will double.
Value-added dairy products drive revenue contribution
The expansion follows strong performance in Parag’s value-added dairy portfolio. During Q2 FY27, ghee, cheese, paneer and curd generated ₹778 crore, accounting for approximately 63% of the company’s quarterly revenue. The category recorded 20% value growth and 7% volume growth.
The company is positioning its expanded paneer capacity to serve both conventional and high-protein product segments, aligning manufacturing investments with its stated focus on protein-led nutrition offerings.
Parag’s New Age Business, comprising Pride of Cows and Avvatar, reported Q2 FY27 revenue of ₹154 crore, registering 71% year-on-year growth. Its contribution to total turnover increased to 12%, compared with 9% in the corresponding period last year.
During the quarter, Avvatar also introduced protein chips containing 10 grams of protein per 30-gram pack, alongside new whey protein flavours and naturally sweetened variants.
Q2 FY27 revenue rises 23% to ₹1,241 crore
Parag Milk Foods reported its highest-ever quarterly revenue of ₹1,241 crore in Q2 FY27, representing 23% year-on-year growth, supported by 12% volume growth.
Key financial indicators included:
- Gross profit: ₹323 crore, up 24%.
- Gross profit margin: 26.0%, compared with 25.8% in the year-ago quarter.
- EBITDA: ₹101 crore, up 37% excluding a prior-year one-off item.
- EBITDA margin: 8.1%, compared with 7.3% on the same adjusted basis.
- Profit after tax (PAT): ₹42 crore, down 8% on a reported basis but up 42% excluding the prior-year one-off item.
For the first half of FY27, revenue stood at ₹2,185 crore, with 18% value growth and 8% volume growth. EBITDA was ₹170 crore, up 23% excluding the prior-year one-off, while PAT was ₹64 crore, down 13% on a reported basis but up 12% after excluding that item.
Focus on expanding value-added dairy manufacturing
The approved investment of approximately ₹205 crore represents a significant capacity addition across two major dairy product categories. The paneer project is targeted for commissioning by June 2027, while the cheese expansion is scheduled for completion during FY28.
With both projects adding 60 MT/day of capacity, Parag is seeking to strengthen its manufacturing scale in paneer and cheese while responding to demand for branded, value-added and protein-focused dairy products.
The company has also disclosed that its proposed amalgamation of wholly owned subsidiary Bhagyalaxmi Dairy Farm Private Limited remains subject to the requisite approvals.
Join Our “Dairy & Food Jobs Updates” WhatsApp group
Follow the Agri Jobs Updates channel on WhatsApp:
Disclaimer
I do my best to share reliable and well-researched insights but occasional errors or omissions may slip through. Please view all content as informational.
Stay informed on all the latest news updates
All Agriculture Books Free Download
All Dairy Technology Books Free Download
All Agricultural Engineering Books Free download
All Horticulture Books Free Download
All Fisheries Science Books Free Download
For Daily Update follow us at:
Facebook Telegram Whatsapp Instagram YouTube
The contents are provided free for noncommercial purpose such as teaching, training, research, extension and self learning.
If you are facing any Problem than fill form Contact Us
If you want share any article related Agriculture with us than send at info@agrimoon.com with your contact detail.
