Parag Milk Foods doubles cheese capacity with Rs 105 crore expansion

MUMBAI: Parag Milk Foods is betting that India’s appetite for cheese is only getting bigger. The dairy company is doubling down on its flagship category, expanding production capacity as changing eating habits and a booming food service sector continue to fuel demand.

Parag Milk Foods Ltd. (PMFL) has approved a Rs 105 crore investment to double its cheese manufacturing capacity from 60 metric tonnes per day (MT/day) to 120 MT/day, as the company looks to strengthen its position in India’s fast-growing value-added dairy segment.

The expansion, approved by the company’s board, will be funded through a combination of internal accruals and debt and is expected to be completed by FY28.

The move comes as Parag Milk Foods seeks to cater to rising demand for both its Go Cheese portfolio and whey protein business, while creating additional capacity for future product innovation.

Go Cheese, the company’s flagship brand, commands around 35 per cent of India’s organised cheese market. Alongside its retail presence across general trade, modern trade, e-commerce and quick commerce platforms, the brand is also a major supplier to hotels, restaurants and catering businesses.

The expansion follows strong growth prospects for the category. According to IMARC Group, India’s cheese market is projected to grow from around Rs 12,900 crore in 2025 to approximately Rs 62,000 crore by 2034, driven by increasing urbanisation, evolving consumer preferences and the rapid expansion of organised food service.

Parag Milk Foods offers one of the country’s broadest cheese portfolios, including mozzarella, processed cheese, cheddar, cheese slices, cubes, spreads, sauces, cream cheese, pizza cheese and speciality cheese products catering to both retail consumers and institutional customers.

The latest investment underscores the company’s strategy of increasing its focus on higher-margin value-added dairy products at a time when demand for premium dairy offerings continues to outpace traditional milk categories.

As India’s consumption patterns shift towards convenience foods, café culture and restaurant dining, dairy companies are increasingly investing in specialised manufacturing capacity. For Parag Milk Foods, the latest expansion suggests it is preparing not just for higher volumes, but for a larger slice of what is expected to become one of the country’s fastest-growing packaged food categories.