Parag Milk Foods commits $23M to quadruple paneer, double cheese capacity
What's the deal? Parag Milk Foods has approved roughly US$27.8M to expand paneer and cheese manufacturing, the dairy company said after posting record quarterly revenue. The plan splits into US$13.6M for paneer and US$14.3M for cheese.
By the numbers: Paneer capacity will jump fourfold, from 20 to 80 tonnes a day, at the Manchar and Palamaner plants by June 2027. Cheese capacity will double, from 60 to 120 tonnes a day, by FY28.
Why now? The investment follows Q2 FY27 revenue of US$168.5M, up 23% year-on-year and the company's highest ever, on 12% volume growth. Parag reported its highest-ever quarterly paneer volumes in the quarter, which it tied to rising demand for branded, protein-rich dairy.
Context: India's paneer market is tilting toward branded products, with 15–18% category growth reported, and rivals including AmulDealroom has a profile for this one. Try Dealroom → are also adding capacity. Ghee, cheese, paneer, and curd generated US$105.7M last quarter — about 63% of Parag's revenue — with 20% value growth.
Yes, but: Profit after tax fell to US$5.7M, down 8% on a reported basis, though up 42% excluding a prior-year one-off item. The company has not disclosed how it will fund the expansion or a plant-wise split.
What's the endgame? Parag is leaning into value-added, protein-led dairy, serving both regular and high-protein paneer. "We are focused on anticipating these evolving needs through continued investments in cheese and paneer capabilities, distribution expansion, and product innovation," said executive director Akshali Shah.
What could go wrong? The payoff hinges on converting new capacity into sales and hitting the commissioning timelines; the cheese target lacks a specific month or phased schedule.
The signal: As Indian consumers trade up to packaged, nutrition-led dairy, producers are racing to build organised-market capacity — and Parag's bet is on winning that shift rather than routine plant upkeep. Investors cheered: shares rose as much as 17% after the results.
Read more: agrimoon.com
Image credit: Generated with Gemini
