Paneer is emerging as the biggest growth engine for Milky Mist Dairy Food, as the Erode-based company enters a ₹1,000-crore-plus quarterly revenue trajectory following its recent stock-market listing. The company sees substantial headroom as consumers increasingly shift from loose, unbranded paneer to packaged products, while tighter food-safety action against analogue paneer could further accelerate the organised market.
Milky Mist has installed capacity to produce around 150 tonnes of paneer per day, which it says is the largest paneer capacity under one roof in India. However, utilisation is currently only around 50–60%, giving the company significant room to increase volumes without immediate capacity expansion.
The company estimates that 90–94% of India's paneer production remains in the unorganised sector, with organised players accounting for only 6–7%. Milky Mist holds around 20% of the organised paneer market, positioning it strongly to benefit from the continuing shift towards branded and packaged dairy products.
India's overall paneer market is estimated at around ₹97,500 crore, but the organised segment represents only about 5% of the total market. The category is growing at roughly 20% annually, while the shift away from analogue paneer could potentially push volume growth closer to 25%; Milky Mist's own paneer volumes are growing at 34%.
The broader consumer shift towards protein-rich foods is also supporting demand. Milky Mist estimates the value-added dairy market is growing at 15–18%, while its own value growth is around 35–38%, with categories such as ice cream and yoghurt also providing additional growth opportunities.
Milky Mist reported ₹65 crore net profit in Q1FY27, compared with ₹7 crore in the year-ago quarter, while revenue increased 44% to ₹973 crore from ₹678 crore. The company expects to sustain growth of more than 30%, supported by capacity ramp-up, geographical expansion, deeper penetration in existing markets and a favourable product mix.
The company has a strong presence in Tamil Nadu and Karnataka, supported by brand recall and a diversified portfolio spanning paneer, cheese, curd, ghee, ice cream, yoghurt, sweets and condensed milk, among other products. It is now expanding into new markets across India to widen its geographic footprint.
Industry estimates put India's overall dairy market at ₹21,318 billion, with liquid milk accounting for approximately 65%, while paneer contributes 4.6%, yoghurt 7%, ghee 8% and ice cream 2.5%. For Milky Mist, the numbers point to a clear opportunity: converting India's largely unorganised paneer consumption into a larger branded, packaged and value-added dairy market. (The Times of India)
Source: Dairynews7x7 2 Sep, 2026 Read full story here
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