Parag Milk Foods to Double Cheese Capacity to 120 MT/Day
Parag Milk Foods’ board has approved a Rs 105 crore investment to double cheese production capacity to 120 MT per day by FY28, alongside higher whey protein generation. The company expects the expansion to meet rising demand, strengthen its value-added portfolio and support product innovation across retail and food-service markets.
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Parag Milk Foods Ltd. has approved a Rs 105 crore expansion of its cheese manufacturing capacity, doubling production from the existing 60 metric tonnes per day (MT/day) to 120 MT/day by FY28. In a stock exchange filing, the company said the investment is aimed at meeting growing demand for cheese and whey protein while creating new avenues for growth in its value-added dairy business.
The investment will be funded through a mix of internal accruals and debt. The expansion is part of the company’s broader strategy to strengthen its presence in the fast-growing cheese segment and enhance its ability to serve both consumer and institutional markets.
Parag Milk Foods has built a significant cheese portfolio under its flagship Go Cheese brand, which the company claims commands around 35% market share. Its products are sold through general trade, modern trade, e-commerce and quick-commerce platforms. The company is also a supplier to institutional customers across hotels, restaurants and catering businesses.
The Go Cheese portfolio spans mozzarella, processed cheese, cheddar, slices, spreads, cubes, cheese sauces, cream cheese, pizza cheese and speciality cheese products. The expanded capacity is expected to support both existing demand and the company’s plans to introduce new products.
The Indian cheese market is witnessing rapid expansion, supported by urbanisation, changing food preferences and the growth of organised food-service channels. According to IMARC Group, the market is projected to increase from around Rs 129 billion in 2025 to approximately Rs 620 billion by 2034.
Rahul Kumar Srivastava, Chief Operating Officer, Parag Milk Foods, said cheese is one of the company’s key growth drivers and a strategic pillar of its value-added products portfolio. He said the capacity expansion would improve manufacturing efficiency, strengthen the company’s ability to meet customer demand and support future product innovation.
The company also reported its consolidated financial performance for the first quarter of FY27. Revenue stood at Rs 945 crore, registering 11% year-on-year value growth, while volumes increased 3%. Gross profit rose 11% to Rs 258 crore, with gross margin broadly stable at 27.3% compared with 27.4% a year earlier.
EBITDA increased 6% year-on-year to Rs 70 crore, although the EBITDA margin declined to 7.4% from 7.7% in Q1 FY26. Profit before tax rose marginally by 0.4% to Rs 29 crore, while profit after tax declined 20% to Rs 22 crore.
The parallel focus on cheese capacity and whey protein generation indicates the company’s strategy to capture greater value from its dairy processing operations while responding to changing consumer demand.
