Parag’s ₹205 Crore Dairy Expansion Must Be Matched by Cold-Chain Capacity-Editoral by Khazi Altaf Hussain

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12-November-2026

Parag Milk Foods’ expansion plans envisage approximately ₹205 crore for paneer and cheese manufacturing. The company plans to take paneer capacity from 20 to 80 tonnes a day, with June 2027 as the target, and cheese capacity from 60 to 120 tonnes a day during FY2028. These are planned capacities, not current output.

The Dairy Times asks: Can cold rooms, refrigerated transport and distributors handle the additional volume through summer and across longer routes? How much product reaches the customer within specification, and how much is lost to returns, short remaining shelf life or temperature excursions? More production does not always mean more saleable output.

The Dairy Times recommends that processors approve expansion budgets alongside a distribution plan. Test the cold chain on representative routes before increasing volumes; track delivered shelf life, rejected shipments and returns; and assign responsibility at each handover. Equipment manufacturers, logistics providers and organised retailers should agree on how to verify performance together.

A paneer or cheese plant earns its return on the product that reaches the customer in good condition.