Parag Milk Foods unveils US$48M investment to accelerate dairy growth

INDIA – Parag Milk Foods, a leading Indian dairy company, has unveiled an investment plan of ₹400 crore (US$48 million) over the next three to four years, aimed at propelling its next phase of growth through a strategic focus on premium and value-added dairy segments.

The company’s focus on ‘new-age businesses’ implies a shift beyond traditional dairy products, possibly venturing into high-growth areas such as value-added dairy products, health and wellness offerings, and dairy alternatives.

This move is designed to capture shifting consumer preferences and emerging trends in the food and beverage sector, reflecting a proactive strategy to maintain competitiveness and expand market share.

As part of this expansion, the company plans to double its cheese production capacity from 60 to 120 tonnes and accelerate product launches across brands like Gowardhan, Go, Avvatar, and Pride of Cows, targeting value-added dairy and ready-to-eat segments.

Avvatar, its vegetarian whey protein brand, which has grown 6 times in three years, plans to enter two to three new categories, including protein snacks and chips, while also expanding its presence across e-commerce and modern trade.

 The company has already invested ₹200–₹250 crore from IPO proceeds to set up its whey filtration plant and launched new flavors like mango whey protein.

“We will be expanding the existing capacity and will be investing Rs 400 crore from internal accruals. Doubling the capacity will also double the business of Avvatar in the next 3 years,” stated Akshali Shah, ED, Parag Milk Foods.

For Pride of Cows, it is investing Rs 70–80 crore to scale up Bhagyalaxmi Dairy Farm, aiming for a daily milk output of 2.5 lakh litres by 2027. The expansion will include a 500-acre greenfield facility at Bota, Nashik, housing up to 20,000 cows and embracing renewable energy and water sustainability practices.

This self-contained facility will feature biogas units, renewable energy systems, and a 10-crore-litre rainwater harvesting reservoir, aligning with the brand’s commitment to sustainability.

“Pride of Cows has evolved beyond just milk. We are now a lifestyle brand targeting the wellness-driven consumer,” Shah noted.

Additionally, the company is keen to position Pride of Cows as a leader in the breakfast category, aiming to introduce new offerings in the value-added dairy segment. Upcoming products include high-protein yoghurt and paneer, Greek yoghurt, and natural cheeses.

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