Khanal Foods Expands Beyond Yak Cheese Dog Chews

Bengaluru-based Khanal Foods is broadening its business beyond Himalayan cheese-based dog treats, aiming to strengthen its position in the global pet-care market while expanding manufacturing capacity.

Founded in 2015 by Bhupendra Khanal and Sneh Sharma, the company built its business around Dogsee Chew, a brand specialising in natural cheese-based dog chews. It subsequently diversified into human food products through its Himalayan Natives brand.

The expansion highlights how traditional dairy-based products can find new commercial opportunities in specialised markets beyond conventional human food consumption.

1. From Himalayan Cheese to a Global Pet-Treat Business

Khanal Foods launched Dogsee Chew after identifying an opportunity to turn traditional Himalayan cheese, commonly known as chhurpi, into a long-lasting dog chew.

The product's distinctive raw material and traditional production methods helped the company establish a differentiated position in the pet-treat category.

Its growth illustrates how dairy ingredients can serve specialised consumer markets when combined with product innovation, targeted branding and international distribution.

2. International Markets Drive Growth

The United States has become Khanal Foods' largest market, followed by the United Kingdom and Canada, according to the reported coverage.

The company's international focus reflects demand for differentiated pet products and its strategy of developing a specialised offering for overseas consumers.

For dairy businesses, the broader lesson is that value-added products can open market opportunities beyond conventional milk, cheese and other mainstream dairy categories.

3. Manufacturing Expansion to Support Ambitious Targets

Khanal Foods is targeting revenue of ₹1,000 crore by 2028.

To support its growth plans, the company is planning a large manufacturing facility in Andhra Pradesh's Chittoor district. The facility is intended to help expand production capacity as the business scales.

The company is also considering a potential ₹300-crore fundraise. These plans remain forward-looking and depend on execution, funding and market conditions.

4. Diversification Beyond Pet Treats

Alongside Dogsee, Khanal Foods has developed Himalayan Natives, which offers human food products such as ghee and honey.

This diversification gives the company exposure to both specialised pet nutrition and consumer food markets.

However, the two categories operate differently, with distinct customer needs, distribution channels and product positioning. Managing both effectively will be important as the company expands.

5. What Dairy Businesses Can Learn

Khanal Foods' development offers several lessons for dairy processors, entrepreneurs and food businesses:

• Look beyond conventional categories: Dairy ingredients may offer opportunities in specialised products and emerging consumer segments.
• Build differentiated products: A distinctive raw material or traditional production method can help a brand stand out.
• Develop export markets strategically: International growth requires products and distribution models suited to target consumers.
• Match capacity with demand: Manufacturing expansion must be supported by sustainable demand and sound financial planning.

What Comes Next?

Khanal Foods is also considering further funding and a potential initial public offering around 2029, according to the report. These remain prospective plans rather than confirmed milestones.

The company's next phase will depend on its ability to scale manufacturing, sustain international demand and translate its growth ambitions into financial performance.

Source: Dairynews7x7 20 Oct, 2026 Read full story here

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