Dairy FMCG company Parag Milk Foods plans to double its cheese production capacity to 120 metric tonnes per day with an investment of ₹105 crore. This expansion will take place at its existing facilities (brownfield expansion) and will be financed through a combination of internal funds and debt. The project is expected to be completed by FY28.
Currently, the company’s flagship Go Cheese portfolio holds a 35% market share. This expansion was to support the growing demand for cheese in the Indian market, particularly across retail and food service channels.
According to IMARC Group, the Indian cheese market is projected to grow from ₹12,900 crore in 2025 to around ₹62,000 crore by 2034. This growth is driven by increasing urbanisation, changing food preferences, and the expansion of organised food service channels. In India, the per capita cheese consumption is around 200 grams, while the global average is 7 kg. Urban areas have a higher consumption rate of about 700 grams per person.
Parag Milk commenced its cow milk-based cheese production in 2008 with an initial capacity of 40 metric tonnes per day. The capacity was later increased to 60 metric tonnes per day, and it is set to double again, positioning the company among the largest cheese manufacturers in the country.
Rahul Kumar Srivastava, COO of Parag Milk Foods, stated that cheese is a crucial growth driver for the company and an essential component of their value-added products portfolio. The Go Cheese range includes mozzarella, processed cheese, cheddar, cheese slices, spreads, cheese cubes, cheese sauces, cream cheese, pizza cheese, and speciality cheese, catering to both retail and food service customers.