Now Reading: Parag Milk Foods to invest ₹105 crore to double cheese capacity
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Parag Milk Foods to invest ₹105 crore to double cheese capacity
Parag Milk Foods to invest ₹105 crore to double cheese capacity
The Hindu Business Line reports that Parag Milk Foods Ltd (PMFL) has approved a ₹105 crore plan to double its cheese manufacturing capacity from 60 metric tonnes per day to 120 mt/day…
The Story in Brief
The Hindu Business Line reports that Parag Milk Foods Ltd (PMFL) has approved a ₹105 crore plan to double its cheese manufacturing capacity from 60 metric tonnes per day to 120 mt/day by FY28. The board cleared the expansion on Friday, with funding from internal accruals and debt. Chief Operating Officer Rahul Kumar Srivastava said the board's approval reflects confidence in the cheese category's long-term potential and that the expanded capacity would improve efficiency and support innovation.
The company's Go Cheese brand holds about 35% market share, supplying retail and institutional customers. The expansion comes as IMARC Group projects India's cheese market will grow from ₹129 billion in 2025 to ₹620 billion by 2034, driven by urbanisation and the organised food service sector. PMFL also markets products under Gowardhan, Pride of Cows and Avvatar brands.
The Indian Opinion
India's cheese market is indeed growing, but projections are only forecasts. Parag Milk Foods is investing heavily, yet the dairy sector faces volatile milk prices and rising competition from multinationals. The company's 35% market share may not be easy to defend. The real test will be whether demand grows fast enough to absorb the extra capacity without squeezing margins. Also, the ₹620 billion forecast by IMARC depends on sustained urbanisation and food service expansion, which are not guaranteed.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
