Profits in Paneer Making Business (Cost to Start)

Profits in Paneer making business in India (Cost to Start)

Hello friends, today let us know about the process to start paneer making business in India. The paneer making business is very popular and also a very profitable and attractive business. It comes under the milk processing steps. Paneer is highly consumed by Asian countries such as India, Bangladesh, Pakistan, etc. Recently, even western countries too started paneer production. In Indian markets, paneer is either sold fresh or in packed form. It is seen that packaged paneer can last longer than fresh cheese.

Ideas to start a Paneer making business for huge profits

If anybody wishes to initiate the paneer production business, this blog may guide you to get into the business.

The potential market for Paneer making business to make good profits

Paneer is widely consumed by the people of India specifically South Indian people. The reason behind this popularity is most of the population is vegetarian and they get paneer as the best replacement of fish and meat. However, the non-vegetarians also eat paneer and this is why it is can be obtained in the country at anyplace. You can get paneer in grocery stores, departmental stores, supermarkets, etc. According to the reports, the hotel and restaurant industries are the highest consumers of paneer.

The famous brands like Amul and Nestle occupy about 65% of the paneer market. The paneer consumption in India is growing up to 30% annually. Therefore, initiating this paneer production business can be attractive to the new businessman. If you are already associated with dairy business then you can easily initiate a paneer production business.

The production capacity of Paneer 

To produce 40 kg of paneer you must need 500 liters of milk regularly. If you produce 1-ton paneer per month, gradually you will end up generating 12 metric tons paneer every year.

License, registration, and permissions for Paneer production business

Regardless of the size of the business, every business must be registered and paneer production business is not an exception. The registration will render insurance coverage to the business. It is important to register the company’s name for its legitimate operations and functionalities. The below steps must be followed for the registration process.

To initiate a business first you must take approval from the municipal corporation. The local municipality may also give space for the arrangements needed to initiate the business.

The business that is classified under the food segment you must register it under FSSAI. On the other hand, as per the PFA Act (2010), it is necessary to oblige certain conditions regarding paneer production. For example, the moisture quantity should not be greater than 70% and the fat content must be below 50%.

You should also undergo a quality detection test for your business. Only after qualifying the test, you will attain the MSME registration. The complete process is now online.

As a start-up business, you must also register and apply for a BIS certificate.

Area requirement for Paneer production business

To initiate even a small business you need appropriate space. To establish a paneer production business at a small level, you must find a place with a minimum area of 250 square feet. Apart from that, you must have a place for processing, storage, and packing, an area to store raw materials, and a place for transport. To begin the business a few essential resources such as water and electricity are crucial. Hence, it is evident that designing a draft of the paneer production project report is very essential before establishing the business.

The raw material for Paneer production

While checking the raw material for paneer production the chief component is milk. The milk is mixed to an acid such as citric acid or sodium hypochlorite to produce paneer. Paneer will expire after three days of manufacture. It must be kept in the freezer only and avoid keeping in the normal temperature.

The machinery required for Paneer production

In case if you miss this: Profit in Food Processing Business.

The machinery required for Paneer production.
The machinery required for Paneer production.

It is stated that the semi-automatic manufacturing unit has a high success rate in India. Though technologically advanced machinery can deliver enormous profits. The advantages include good quality and high production of paneer. Here is the dome of the important machinery needed for paneer production.

  • Aluminum cans for storing milk
  • Motor coolers
  • Fat remover
  • Pressing tank made of stainless steel
  • Boiler for heating milk
  • Milk analyzer
  • Deep freezer
  • Vacuum packing machine
  • Weighing machine
  • Labeling machine

This equipment could be obtained from online websites like Alibaba or India mart.

Processing Paneer at home without machinery

In India, people produce paneer even at home not taking help from technology or any advanced machinery. Here are some steps to making paneer at home.

  • First milk should be processed carefully before the production of paneer. The milk is heated on the milk boiler. Milk is boiled to kill the germs and disease-causing microbes. The boiled milk also lowers colloidal calcium phosphate solubility. The temperature that is required to heat the milk is 60 degrees centigrade.
  • After boiling the milk then the extracted lemon juice is added to it. You can even use citric acid if lemon juice is not available.
  • The complete material is then strained through a fine muslin cloth to separate the moisture from the material.
  • To separate the last drop of water, the entire thing is repressed by a heavy item.
  • After obtaining the paneer, it is weighed properly and cut into pieces then it is packed accordingly.

Packaging of Paneer

Freshly made paneer will expire in about three days. Thus, it needs special focus. During the packaging, it is carefully handled to make it last a little longer. The whole motive behind the packaging is to upsurge the life of the product. The packaging can be done in different ways. You can use the polythene for packaging. For industrial units a vacuum packaging machine employed. The packaging is completed by heat sealing and lastly, packed paneer is placed in the freezer for storing.

The cost or investment to start the Paneer making business

If you are choosing any small scale business in paneer production then you must pay for raw materials specifically milk and other things such as packaging material, citric acid, electricity, water, boxes, fuel, a paste of the cheese. If you are inaugurating a small scale business then employees’ remuneration is also essential. The capital for small scale paneer production business is Rs. 2 lakhs. Additionally, on a large scale basis, the equipment can be around 2.30 lakh rupees. The cost of raw material could be about 2 lakhs. Therefore, the entire cost could be estimated to 5-6 lakh rupees.

For beginning the business, you must plan for the budget. You may charge around 150 to 200 rupees per kilogram in the market. Not only this, but you can also directly contact and have a network with restaurants and hotel industries.

Profits in Paneer making business in India

Because of the high demand, the profit margin in paneer making business is high. One can gain up to 2000 rupees every day. The profit margin in the paneer production business is much more for wholesale dealers. If you carefully follow the above-mentioned steps you can earn income through paneer production business though you have spent less capital.


  1. Share some detail that where to buy machinery & total cost to start this business & it’s loanable and some contact if you have for this little project.


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