How To Start A Paneer Manufacturing Business – Complete Guide

Paneer is a versatile and widely consumed dairy product. It presents a promising business opportunity. If you’re passionate about dairy products and eager to enter the food manufacturing industry, starting a small-scale paneer manufacturing business could be a rewarding venture. Here’s a comprehensive guide to help you kickstart your journey.

Paneer is a fresh cheese.  It is an unaged, acid-set, non-melting farmer cheese or curd cheese. Generally, paneer is famous in almost all Asia Pacific countries like India, Bangladesh, Pakistan, Afghanistan, etc. However, the production of paneer is now spreading throughout the world.

Is Paneer Manufacturing Business Profitable?

South India is the biggest market for paneer. However, paneer is popular in almost every state in the country. Industry insiders reason that paneer may be finding acceptability because more people are eating out and travelling a great deal within the country. However, Amul sells 65% of the branded paneer in the country.

Hotel industries are the major consumer of paneer. Besides, paneer consumption is growing in India by 25%-30% yearly. Therefore, starting a small-scale paneer manufacturing project is highly lucrative for new entrepreneurs, if you are already in the dairy business, you can also consider starting a small unit with the existing one.

12 Steps to Start a Paneer Manufacturing Business.

1. Market Research

Begin with thorough market research. Identify your target audience, analyze competitors, and understand the demand for paneer in your locality. Insights from this research will shape your business strategy.

2. Create a Business Plan

Develop a detailed business plan outlining your objectives, target market, production capacity, and financial projections. A well-thought-out plan serves as a roadmap for your business.

3. Legal Compliance For Paneer Manufacturing

According to the PFA (2010), paneer means “product obtained from cow or buffalo milk or combination thereof, by precipitation with sour milk, lactic acid, or citric acid.

It shall contain no more than 70% moisture and the fat content should not be less than 50% expressed on the dry matter”. Milk solids may also be used in the preparation of paneer.

So compliance with the PFA Act is mandatory in the paneer manufacturing business. It is advisable to check your state law. However, here we put some of the basic requirements.

• First of all, register your business with ROC.
• Apply for a Trade License from the local Municipal authority.
• Obtain MSME Udyog Aadhaar online registration
• Apply for FSSAI registration.
• Also, you must apply for a GST registration number.

4. Paneer Manufacturing Plant Setup and Machinery

In starting a small-scale paneer manufacturing unit, you must secure a space for the operation. An area of 1000 Sq Ft is sufficient for starting the operation. However, you must specify the space for the processing area, storeroom, packing material storage, finished goods storage, and washing.

Also, you must provide utilities like electricity and water. It is advisable to have a paneer manufacturing project report in hand before commencing the business.

Generally, semi-automatic manufacturing units are more successful in this field. However, the use of a modern mechanized process offers the advantages of uniform quality, improved shelf life, increased yield, and a nutritionally better product. Some of the basic required machinery are the following:

• Aluminum cans for storage of milk
• Stainless steel precipitation tank
• Filter press manual
• Deep freezer
• Weighing scale
• Cream separator
• Stainless steel vessels
• Laboratory equipment

Read: Things to Consider in Starting a Product-Based Business

5. Paneer-Making Manufacturing Process

Some of the basic steps to produce Paneer are as follows:

• Raw Material Procurement: Source high-quality milk from reliable suppliers. The quality of milk directly influences the quality of paneer. Ensure a consistent and hygienic supply chain.
• Pasteurization: Pasteurize the milk to eliminate harmful bacteria and pathogens. This crucial step ensures the safety and longevity of the paneer.
• Coagulation: Introduce a coagulating agent, typically lemon juice or vinegar, to curdle the milk. The resulting curds will form the basis of paneer.
• Cutting and Draining: Cut the curds into small cubes, allowing the whey to separate. Drain the whey to concentrate the curds, which will later be pressed into paneer blocks.
• Pressing and Shaping: Press the concentrated curds into desired shapes, traditionally rectangular blocks. The pressing process determines the texture and consistency of the paneer.
• Packaging: Once shaped, pack the paneer into hygienic and airtight packaging. Consider vacuum-sealing for prolonged freshness.

6. Raw Materials

Paneer is a highly perishable product. It was reported that the freshness of the paneer remains intact only for 3 days at refrigeration temperature. At room temperature, the paneer does not keep good for more than one day.

To increase the shelf life of paneer, additives, modifications in the paneer manufacturing process, surface treatments, and quality packaging materials are essential. The major required raw materials are milk and Sodium hypochlorite.

Read: Best Small Manufacturing Business Ideas

7. Quality Control

Implement rigorous quality control measures at every stage of production. Regularly test for taste, texture, and hygiene to maintain consistent quality.

8. Storage

Establish proper storage facilities with controlled temperatures to preserve the freshness and quality of the paneer.

9. Pricing

You need to set competitive yet profitable prices. Consider factors like production costs, market rates, and perceived value.

10. Bookkeeping

You must maintain meticulous financial records. Keep track of expenses, sales, and profits to make informed business decisions.

11. Packaging

The type of packaging materials plays an important role in increasing the shelf life of paneer. Besides, the use of packaging significantly increases the shelf life of paneer. Normally, you can pack the paneer blocks in polyethene pouches. In this case, you must apply the heat seal process and store it under refrigeration conditions. Alternatively, you can opt for vacuum packaging in laminated or co-extruded films.

12. Have a Marketing Plan

Create an appealing brand for your paneer business. Invest in eye-catching packaging that communicates freshness and quality to consumers. Explore various distribution channels. Consider selling to local grocery stores, supermarkets, or directly to consumers. Create a website and establish an online presence for wider reach. Also, leverage social media and local marketing channels to promote your paneer. Hi

Frequently Asked Questions

What is the cost of launching a Paneer Manufacturing Plant?

The cost and investment will mainly depend on the scale of the business and production output. The cost of a paneer manufacturing plant with a capacity of 500ltrs/her is around Rs. 7 Lacs. You also need other machinery and equipment for making commercial paneer production. Furthermore, an area of a minimum of 2000 sq. ft will be needed to run the paneer manufacturing unit. The cost of starting a paneer manufacturing plant business will be in the range of Rs. 20 Lacs to Rs 25 Lacs.

What equipment is needed for small-scale paneer manufacturing?

Key equipment includes milk pasteurization units, coagulation vessels, presses, and packaging machinery. Invest in stainless steel equipment for hygiene.

Can paneer be flavoured or infused with other ingredients?

Yes, you can experiment with flavoured paneer by adding herbs, spices, or even fruits during the coagulation process.

How can I differentiate my paneer in the market?

Consider offering speciality paneer variants, such as organic or flavoured options. Emphasize the freshness and quality of your product in your marketing.

Can I start a paneer manufacturing business from home?

Depending on local regulations, starting from home may be possible for small-scale operations. Ensure compliance with food safety standards.