Milky Mist targets 90% of unorganised paneer market with new plant

Milky Mist has secured clearance to establish a new 48-acre production plant in Maharashtra, signalling the company's aggressive expansion strategy in India's fragmented paneer market. The facility approval comes as the dairy producer eyes substantial growth opportunities in the unorganised sector, where the bulk of domestic paneer production remains concentrated among small-scale and informal producers.

Paneer continues to serve as the company's primary product offering, with management identifying the unorganised market as a significant avenue for expansion. Industry estimates suggest that approximately 90% of paneer production in India currently operates outside the organised retail and corporate sectors, presenting substantial consolidation potential for structured dairy companies.

The Maharashtra plant represents a strategic investment to increase production capacity and strengthen Milky Mist's market position. The move aligns with broader industry trends as major dairy firms seek to formalise supply chains and capture market share from traditional producers through improved distribution networks and quality assurance.

The expansion underscores growing investor confidence in India's organised dairy sector, particularly in value-added products like paneer which have seen rising consumption among urban and semi-urban consumers. Regulatory approvals for large-scale production facilities typically reflect positive assessments of market demand and operational feasibility.