Small-Scale Paneer Manufacturing Business

Paneer manufacturing is a good small scale business idea that yields high return. If you can ensure incessant milk supply, then you should venture into this enterprise. However, you need to have proper planning and effective sales strategy. Funding is also very important. Paneer manufacturing business requires a moderate amount of investment and some technical knowledge.  In India as well as other south Asian countries, paneer is highly consumed milk product. It has got immense popularity because of its nutritional values, taste and easy availability. This makes the business so much popular both in urban and rural areas.

There are various types of additives added to the curdling milk, which has been heated and is un-aged. When the milk is heated, the curd from the whey needs to be separated. This separated curd is then drained carefully with the help of a cheese cloth and this is then dipped in cold water for about 3 hours. The additives are then either kneaded or are processed with the help of machinery. Paneer is rich in various vitamins, minerals and proteins and it comes in two different variations, i.e. packaged and fresh. There are various types of dishes which uses paneer.

Market Potential of Paneer Manufacturing:

In our country, paneer is quite a popular dairy item almost in every household. Both in vegetarian and non-vegeterian dishes, panner are used. Naturally it is sold in various grocery stores, supermarkets, departmental stores etc. As paneer is the primary ingredient in several exotic Indian dishes, restaurants, hotels, food joints are the most important consumers of   paneer. However, packaged paneer of several reputed brands namely Amul, Nestle etc is sold maximum in the market, near about 65%. One thing is clear from the above words that paneer consumption is increasing at a faster rate. Thus, if you have interest in dairy industry, you can start the business of paneer manufacturing and expect a high return.

Production Capacity:

The paneer manufacturing operation should be one shift per day and the capacity is estimated at processing about 500 liters of milk each day and this will yield about 40 kg of paneer. Annually, the production can produce up to 12 metric tonnes of paneer, with 1 tonne of paneer production each month.

Sales Revenue:

It may take about RS. Per litre of good quality milk and the cream and the paneer can be sold at RS 220 per kg. RS.240 is the MRP per kg. The yield of cream can be of 4500 kg per year and the revenue will be of RS.9.90 lakhs. Paneer of 12 metric tonne will generate about RS. 26.40 lakhs and this will result in total revenue of RS.36.30 lakhs.

The Raw Materials Used for Paneer Manufacturing:

Paneer manufacturing requires some important ingredients which need to be collected before initiating the actual production procedure. These ingredients are listed below:

Animal milk:

This is one of the major ingredients which are used for cheese production and there are various sources to get the milk for this. Some of the common sources are: cow milk, buffalo milk, goat milk and sheep milk. There are many producers who also use dried milk and skimmed or mixed milk as well. To get high quality cheese, most of the time, buffalo milk is used and the reason for this is because this milk contains a good amount of casein, minerals and fats, which produces better cheese. To increase the cheese yield, one may also use both mixed milk and buffalo milk which is fortified with the non fat dry milk. The milk obtained from the cow has got the additives added into the mixture in order to produce the cheese.

The producer decides which types of additives are used for the production. There are various additives which are used for increasing the shelf life of the cheese and also to improve or add a different and unique taste to the cheese. Some of the common additives which are used by the producers are: vegetable oil, calcium compounds, herbs, coconut milk and also protein enrichment. The reason for adding protein enrichment is because it greatly increases the nutritional values of the cheese and to increase the moisture, the sodium compounds are used. To help with the formation of the curd, calcium is used. The quality of the cheese is greatly improved by adding coconut milk during production and for unique and improved composition of the cheese and taste, emulsifying salts are used.

Machinery and Set Up for the Paneer Manufacturing Unit:

In order to start a small sized paneer manufacturing unit, one should first look for a suitable place to set up the machineries required to produce the cheese. An area measuring 1000 sq feet is enough to set up the plant. However, there should also be spaces for the processing area, store room and storage for packing material and finished good storage and also space for washing as well. There should also be the presence of the utilities such as water and electricity. It is generally advised to have paneer manufacturing project report before starting the manufacturing business. The semi automatic units are more successful in this business niche. However, the modern and technologically advanced machineries offer various types of advantages such as: uniform quality and more yield of the cheese and also improved and increased shelf life of the cheese and high in nutrition cheese. The basic required machineries are mentioned below:

  • For the storage of milk, one requires aluminum cans.
  • Precipitation tank made of stainless steel.
  • A manual filter press
  • Deep freezer.
  • A weighing scale
  • Laboratory equipments
  • Vessels made of stainless steel
  • Cream separator.

Paneer Making Process:

To start the production, the milk is first heated and is allowed to coagulate. The heat is used for destroying the pathogens in the milk and it also effectively reduces the colloidal calcium phosphate solubility. The heat is of 90 degree Celsius. Various types of coagulants are used by the producers and this process of coagulation is done by procedures such as: pH and temperature coagulation. After this process of heating and using the coagulants, the cheese then goes through the process of whey drainage and hooping and pressing. After this, the cheese is preserved and packaged properly. The process of manufacturing can be done either manually, semi automatic or fully automatic.

Legal Compliance of Paneer Manufacturing:

You will need to register the business of paneer manufacturing and also acquire a business name and an insurance cover as well. In order to operate, you will need a manufacture and trade license as well. The product should also pass the basic standardization test as well. The product will need to have manufacturing date and label and one will need to create a business website and can also sell the product through online.

Packagingof Paneer :

The packaging can be done in various ways and it is crucial because it can increase the shelf life of paneer. Polyethyelene packages are used and heat seal process is applied and is subjected to refrigeration conditions. Another way is vacuum packaging in the laminated or co-extruded or saran coated packaging films can also increase the shelf life as well. However, according to the requirements, one must procure the packaging consumables.

Paneer Manufacturing Project Cost:

The cost of machineries can require about RS.2.30 lakhs and the overall project cost can take RS.11.710 lakhs. Total raw materials can require RS 2 lakhs in average.

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Small-Scale Paneer Manufacturing Business - Small Business Idea
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Small-Scale Paneer Manufacturing Business - Small Business Idea
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Paneer manufacturing is a good small scale business idea that yields high return. If you can ensure incessant milk supply, then you must start this venture.
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Home Business Ideas Center
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