Parag Milk Foods announces ₹400 cr capex to double cheese capacity, expand Avvatar brand, and scale Bhagyalaxmi Dairy to 2.5L litres/day.
Strategic Investment to Double Cheese Capacity & Expand Premium Dairy Portfolio
Key Investment Highlights
✔ ₹400 crore capex over 3-4 years for value-added dairy expansion
✔ Cheese capacity doubling (60 → 120 tonnes/day)
✔ Bhagyalaxmi Dairy Farm expansion (₹70-80 cr for 2.5L litres/day milk by 2027)
✔ New product categories under Avvatar (protein snacks/chips)
✔ 500-acre greenfield facility in Nashik with 20,000-cow capacity
Segment-Wise Growth Strategy
1. Cheese & Value-Added Dairy
- 2X capacity expansion to meet growing demand
- Focus on private label and branded segments
- Enhanced focus on mozzarella for QSR/foodservice
2. Avvatar (Whey Protein Brand)
- 6X growth in 3 years – now entering new categories:
- Protein snacks
- Protein chips
- Expanding distribution via e-commerce & modern trade
3. Pride of Cows (Premium Milk)
- Bhagyalaxmi Dairy scaling to 2.5L litres/day
- Sustainability initiatives:
- Renewable energy adoption
- Water conservation practices
4. New Greenfield Facility (Bota, Nashik)
- 20,000-cow capacity
- Integrated dairy hub with processing & sustainability focus
Market & Financial Implications
💰 Revenue Growth Potential
- Value-added dairy segment growing at 15-20% CAGR
- Whey protein market expected to cross ₹10,000 cr by 2027
🌱 Sustainability Commitment
- Solar-powered dairy operations
- Zero-liquid discharge initiatives
📈 Investor Perspective
- Margin improvement expected from premiumization
- Reduced reliance on commodity milk business
Management Commentary
“This investment reinforces our leadership in value-added dairy. With Avvatar’s success and Pride of Cows’ expansion, we’re well-positioned to capture India’s evolving dairy consumption trends.”
— Parag Milk Foods Spokesperson
Industry Outlook
- India’s cheese market to reach ₹21,000 cr by 2028 (12% CAGR)
- Premium milk segment growing at 18% annually
- Protein-fortified foods gaining traction in urban markets