Parag Milk Foods Ltd. is targeting ₹10,000 crore in revenue over the next three to four years, as the dairy company plans to expand manufacturing capacity and strengthen its presence across value-added dairy and nutrition categories.
The company reported ₹3,818 crore revenue in FY26, with overall volume growth of 5% and value growth of 11%. Its core categories recorded 8% volume growth and 16% value growth, while its New Age business, comprising Pride of Cows and Avvatar, grew 91% and contributed 10% of overall turnover.
Capacity Expansion Across Value-Added Dairy
Parag Milk Foods is planning capacity additions across key categories, including cheese and whey, as it seeks to support the targeted revenue growth.
The company has also announced an approximately ₹100 crore investment to quadruple paneer capacity from 20 MT/day to 80 MT/day at its facilities in Manchar, Maharashtra, and Palamaner, Andhra Pradesh. The expanded capacity is expected to be commissioned by June 2027 and will include regular as well as high-protein paneer.
Paneer has become an important part of the company’s value-added portfolio. Parag said its paneer business grew 28% over the past two years, while value-added products account for more than 90% of its turnover.
New-Age Dairy and Nutrition Businesses
The company is also building its growth strategy around premium and nutrition-focused categories.
Pride of Cows and Avvatar together formed Parag’s New Age business, which recorded 91% growth in FY26. Avvatar operates in whey-protein-based sports nutrition, while Pride of Cows focuses on premium dairy products.
The company’s broader portfolio includes ghee, dahi, paneer and liquid milk under Gowardhan, cheese, UHT milk, buttermilk, lassi and flavoured milk under Go, along with premium dairy and sports-nutrition products.
Scaling Beyond Liquid Milk
The expansion strategy reflects Parag’s focus on value addition rather than relying solely on liquid milk volumes.
The company’s planned investments in paneer, cheese and whey come as demand grows for protein-rich and convenient dairy products. Its paneer expansion is also intended to support wider pan-India distribution across general trade, modern trade, quick commerce, e-commerce and HoReCa channels.
Parag’s growth ambitions come against the backdrop of improving scale but continuing cost and margin pressures in the dairy industry. In Q1 FY27, the company reported consolidated revenue of ₹945 crore, up 11% year-on-year, while net profit declined 20% to ₹22 crore.
With a ₹10,000-crore revenue target and simultaneous investment in paneer, cheese, whey and premium nutrition categories, Parag Milk Foods is positioning value-added dairy as a central driver of its next phase of growth.
Source: Dairynews7x7 29 Sep, 2026 Read full story here
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