Parag Milk Foods to double cheese production capacity with ₹105 crore investment
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Parag Milk Foods Ltd said on Thursday that its board has approved an investment of ₹105 crore to double its cheese manufacturing capacity to 120 metric tonnes per day (MT/day) from the existing 60 MT/day.
The expansion is part of the dairy FMCG company’s strategy to cater to rising demand for cheese and whey protein products and tap new growth opportunities. The project is expected to be completed by FY28 and will be funded through a mix of internal accruals and debt.
Parag Milk Foods has built a strong presence in the cheese segment through its flagship Go Cheese brand, which commands around 35% market share, according to the company. It also supplies cheese products to institutional customers, including hotels, restaurants and catering businesses, besides selling through general trade, modern trade, e-commerce, and quick-commerce channels.
The company’s Go Cheese portfolio includes mozzarella, processed cheese, cheddar, cheese slices, spreads, cheese cubes, cheese sauces, cream cheese, pizza cheese and speciality cheese products for retail and food-service customers.
According to IMARC Group, the Indian cheese market is projected to grow from around ₹12,900 crore in 2025 to approximately ₹62,000 crore by 2034, driven by rising urbanisation, changing food preferences and the expansion of organised food-service channels.
"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," Rahul Kumar Srivastava, Chief Operating Officer, Parag Milk Foods, said.
"The additional capacity will enhance manufacturing efficiency, strengthen our ability to meet growing customer demand and support future product innovation," he added.
At 12.20 pm shares of Parag Milk Foods were trading 0.83% lower at ₹224.11 apiece, on the NSE on Friday.