How To Start Cheese and Paneer Manufacturing Business

Cheese and paneer are the two major products in the dairy industry. And the demand for these items is increasing very fast. Any individual can start cheese and paneer manufacturing business as small scale basis. Find here a detailed cheese and paneer manufacturing business plan sample checklist.

Basically, cheese and paneer are value-added dairy items. Basically, paneer is fresh cheese. It is also known as cottage cheese. Actually, paneer is an unaged, acid-set, non-melting farmer cheese or curd cheese. However, packaged paneer ensure good quality and longer shelf life than loose paneer.

Milk and its products are the essential consumer items of daily life. Therefore, the items come under the FMCG segment. The demand for these items is increasing both in the rural and urban areas. Additionally, vegetarian people are the major consumer of these items.

In India, paneer and cheese are popular in the both north and south India. Cheese is originally from southern Italy. Additionally, it is an essential ingredient for several pizzas and pasta dishes. Consumption of cheese has several health benefits associated with it. It is a good source of Vitamins, minerals, proteins.

There are several reasons for the growing demand of this item. These are changing food habits, increasing fast food chains and over consumption of pasta, pizzas and easy availability of raw materials such as milk.

Cheese & Paneer Manufacturing Business Plan – Basic Guide

In initiating the business, it is advisable to study your local market. You can find several established companies in the market right from Amul to Nestle. Study the price range, quality of the packaging, sales strategy etc. These all will help you in making your own business model.

Additionally, you must have a comprehensive project report in your hand. According to your investment capacity, you must craft the project report. However, you can also avail finance from the banks or other financial institutions.

Business Compliance

Cheese and paneer both are food items. Therefore, the production business demands specific licenses and permission. Check your state law. Additionally, check the tax liabilities also.

In India, you will need to obtain FSSAI registration. Apply for BIS certification also. As per the management pattern, register your business. For a small operation, you can start the business as proprietorship company. Apply Udyog AAdhaar. You can apply for online registration.

Plant Setup & Machinery

First of all, decide whether you want to start with the both two products or with a single product. Accordingly, you will need to secure a space for it. Generally, paneer manufacturing is an easier business than cheese production. According to the project report, secure a space for the unit operation. Ensure that space has adequate electricity and water supply.

Generally, this type of factory operations come with a production line. You can install the plant by two ways. Either as the semi-automatic basis or as the fully automatic basis. And these all depend on the desired production output and investment capacity. According to the project report, procure the machinery from a reliable supplier.

Raw Materials

In the both case, the major required raw material is milk. Therefore, you will need to ensure the regular availability of milk at your unit. Additionally, you will need to procure the packaging consumables. You must provide a quality packaging to ensure the freshness and longevity of the product.


Generally, this type of manufacturing business demands quality and efficient manpower. According to your plant setup, you will need to hire quality manpower. Broadly, you will need to have three dedicated teams. First is for production, second sales team and the third for managing administrative work including accounting.

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Cheese Manufacturing Process

Basically, cheese comes in many varieties. The variety determines the ingredients, processing, and characteristics of the cheese. Basic steps involve standardization of milk, pasteurization, cooling the milk, adding bacteria, forming cheese, cutting and packaging.

Paneer Manufacturing Process

First of all, you will need to process the milk for skimming in a cream separator. Then heat the skimmed milk to about 60 degrees centigrade. Then add a few drops of lime extract or citric acid to split it. After that, filter the coagulated mass through a muslin cloth and filter press when the cake is obtained. Then slice it manually to the desired weights, pack in wax paper and store under refrigerated conditions.

Generally, the long-term success of FMCG products depends on the successful distribution network. In addition, you will need to concentrate on tying up with the malls, supermarkets, and retail chains. Overall branding and advertising are must in the cheese and paneer manufacturing business.

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