There are three dominant players in this small market. Pioneer Amul, food giant Britannia and ayurved products leader Dabur (in a joint venture with Bongrain International, France) are slugging it out between themselves to carve out larger portions of this growing market.

At present, the cheese market is estimated to be worth Rs 100 crore with a production of around 5,000 tonnes and is expected to grow at a rate of 20 per cent. On the other hand, the paneer market is supplied by the unorganised sector and has no dominant player.

It is this potential that has attracted new players like Pune's Cheesemakers(India) which has entered the market for both the paneer and processed cheese. But unlike other players, Cheesemakers is making bold to tap the export potential of the paneer and cheese made in India. It is also seeking to pioneer branded paneer in the market. Rajendra P Ghogate and Mohan Mathunni, promoters of Cheesemakers, are taking the technology route to establish a presence. The dairy technologist duo cut their teeth in the milk processing business during their days at the National Dairy Development Board and branched out independently four years ago.

Starting with paneer, they developed a new processing technology developed in-house (and patented), which increased the shelf-life of paneer. "Nobody had made an attempt to change the technology and we were sure no foreign company would work on paneer," says Ghogate. Mathunni who handles the technical operations says that people prefer to deal with liquid milk as processing milk is a risky business. "In 1991 the milk sector was closed and standards werepoor. As a result technology too has not developed. It was necessary to adopt new techniques for international markets," he adds.

This innovation has led SIDBI to inject venture capital into the company. A full-fledged paneer plant came up in 199, the first such totally mechanised plant in the country. They got an export order to the Gulf for white cottage malai paneer, the first case of paneer exports in the country. Cheesemakers has also become a major supplier to hotel chains in Mumbai includingthe Taj. It also retails branded paneer named Peshwa in Pune and Mumbai.

Early last year, its efforts landed them Domino's and Pizza Hut among its customers. Here too it has opted for a better technology to manufacture raw cheese. In this case, the National Chemical Laboratory has lent a helping hand. A new ultra filtration technology is being used which improves cheese quality and enables processing of larger quantities of milk. This project has the sanction of the department of science and technology and willbe the first such plant to commence on a commercial basis.

These efforts helped consolidate Cheesemaker's position in the market. Last year the turnover was Rs 1.25 crore and is expected to go upto to Rs 3 crore this year. Nearly 45 percent of the turnover is expected to come from exports.

However, the going is not easy.

Ghogate says he is in a business where he has little control over the raw material. The quality of milk is not always satisfactory but Cheesemakers has little control over its price or supply. There is also no clear food processing policy, he complains. But these hurdles are not enough to deter Cheesemakers. With competition hotting up, "Remaining small is a problem and you have to grow," says Ghogate as he sets off to explore the potential of beta cheese, yet another variety of cheese not manufactured in India.