Parag Milk Foods Ltd. (PMFL), a Mumbai-based dairy company, said on Friday that its board approved a ₹105 crore capital expenditure plan to double cheese manufacturing capacity from 60 metric tonnes per day to 120 metric tonnes per day. According to Agri TIO, the expansion is scheduled for completion by FY28 and will be funded through a mix of internal accruals and debt. The additional capacity is aimed at meeting rising demand for cheese and whey protein products.
Board-approved capacity expansion
The board-approved expansion marks a major capacity addition in India's organised dairy processing sector. As reported by Agri TIO, PMFL's cheese brand Go Cheese currently holds approximately 35% market share and supplies both retail and institutional customers, including hotels, restaurants, and catering businesses.
| Metric | Current capacity | Planned capacity | Change |
|---|---|---|---|
| Cheese manufacturing capacity | 60 mt/day | 120 mt/day | Double |
| Estimated capital expenditure | ₹105 crore | — | — |
| Completion target | FY28 | — | — |
| Funding mix | Internal accruals and debt | — | — |
The project economics tie directly to volume expansion: adding 60 mt/day of cheese-making line capacity is expected to improve manufacturing efficiency and support product innovation, according to the company's chief operating officer.
Market outlook: ₹129 billion to ₹620 billion
The capacity plan follows market research pointing to sustained growth in Indian cheese consumption. According to research firm IMARC Group, India's cheese market is forecast to expand from roughly ₹129 billion in 2025 to around ₹620 billion by 2034, driven by urbanisation and the growth of the organised food service sector.
India's cheese market is forecast to expand from roughly ₹129 billion in 2025 to around ₹620 billion by 2034. — IMARC Group
Agri TIO reported the market forecast as context for PMFL's decision. The organised food service segment — hotels, restaurants and catering — is also the customer base that Go Cheese already supplies in the institutional channel.
Go Cheese product portfolio
Go Cheese spans a broad range of cheese styles, serving both retail and foodservice segments. The portfolio includes:
- Mozzarella
- Cheddar
- Processed cheese
- Cream cheese
- Pizza cheese
- Specialty variants
According to Agri TIO, the brand's customers include retail consumers as well as hotels, restaurants, and catering businesses. This institutional channel aligns directly with the organised food service growth cited by IMARC Group, while the retail side is served through the same product portfolio.
Executive comment
Chief Operating Officer Rahul Kumar Srivastava said the board approval reflects the company's confidence in the long-term potential of the cheese category. As reported by Agri TIO, the expanded capacity would improve manufacturing efficiency and support product innovation.
Company background
PMFL, founded in 1992, also markets dairy products under the Gowardhan, Pride of Cows and Avvatar brands. The company is headquartered in Mumbai. With Go Cheese already holding approximately one-third of the branded cheese market, doubling capacity positions the company's processing lines to serve the projected surge in cheese and whey protein demand.
Production timeline
The additional 60 mt/day of capacity is expected to be commissioned by FY28, with funding coming from internal accruals and debt. The announcement was published on August 7, 2026, according to Agri TIO. For food processing plant managers and procurement teams, the project signals a multi-year capital commitment to cheese processing lines in India — a segment where the organised supply chain is expanding alongside the food service sector.
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