Paneer Production Project Report



Project Report of Paneer Production Plant is available for immediate download on this website. The main objective of the project report is to make potential entrepreneurs aware of the business information in the field of milk processing. This report is also helpful in preparing project reports for bank credit and other works. To fulfill the purpose of the pre-feasibility information; The document covers various aspects of project conception, development, startup, marketing, finance, and business management.

Paneer is a soft South Asian cheese made from coagulating milk with acid and heat. It is a famous Indian indigenous dairy product that resembles an unripened kind of soft cheese and is used in a range of culinary dishes and snacks. It is made by coagulating milk with heat and acid, capturing almost all fat, casein complexed with denatured whey proteins, and a few salts and lactose. It’s packed with high-quality animal protein, fat, minerals, and vitamins. Paneer production has mostly been relegated to the unorganized dairy sector, employing archaic, inefficient pro methods.

The paneer-making business is thought to be lucrative and profitable. It is categorized as a milk processing technique. Some Asian countries, such as India, Pakistan, and Bangladesh, consume a lot of paneer. Many Western countries, in addition to Asian countries, have recently become involved in paneer production. In the Indian market, paneer is either fresh or pre-packaged. Packaged paneer has been shown to last longer than fresh cheese. If you wish to create your own business, this article can help you get started.

Paneer Production Business Project Report

You need to explore the paneer production Project Report if you plan to start one of India’s most successful and evergreen businesses. An entrepreneur can start this venture by making a business plan on very short notice from our website by simply adding the project report to the product basket and making a nominal payment. A businessman will be glad to know that you can buy the personalized project report that we customize according to your need by paying an extra amount. Our experts are well qualified to research a business type with full knowledge and sources and grab important and useful information in our products. 

Soya Paneer, Cottage Cheese, or manufacturing paneer is a lucrative and highly profitable business in India. It is a category of milk processing. You can explore all details about this small-scale paneer manufacturing project report and start your new business.

You will get all detailed information about the cost, investment, setup, machinery, and legalities on this page.

Paneer being fresh cheese is a non-melting farmer cheese or curd cheese. Paneer is famous in all parts of Asia like India, Afghanistan, Pakistan, etc. Processing of paneer is popular across the world.

In the Indian market, paneer is found in two categories. One is selling fresh paneer and the other is selling packaged paneer. Fresh paneer has a very low shelf life as compared to the packaged paneer available in the market.

An individual can start a paneer production business in India and can sell packaged paneer commercially. You can start this business on a medium scale and manufacture paneer. You will be glad to know that the manufacturing process of paneer is very simple and easy.

What is Commercial Paneer?

Among all the products of milk like paneer, butter etc. Commerical paneer is in more demand. Commercial paneer means the paneer that is obtained from cow or buffalo milk or combining both. It is precipitated using sour milk, citric acid or lactic acid. It must not have more than 70% moisture and the fat content needs to be less than 50% expressed from dry matter.

How To Make Paneer for Business?

Paneer manufacturing business is the fastest manufacturing product business. It requires cost and investment to start this business. You need money to invest. Money or finance can be arranged from the financial institutions by submitting a personalized project report. You can get the ready-made customized project report for paneer manufacturing from us by paying extra amount.

Once the investment is ready you can manufacture paneer for business. The investment amount varies from Rs 7 lakh to 10 lakh. You will have to buy the required machinery for the same. Once machinery is available, production becomes easy.

An area of around 2000 square feet needs to be arranged before starting this business in India. This much space is required to run a paneer processing unit. Overall cost of starting a paneer making business can go upto Rs 20 lakh.

How to Download Project Report

There are fixed charges for downloading the project report of Paneer Production, and you can download the project report of Paneer Manufacturing instantly by paying a nominal cost. Documents are available for download in PDF format.

Is Paneer Production a Profitable Business in India?

South India is the major market for selling paneer. Paneer is famous in every part of the country. The insiders of this industry know that paneer needs to find acceptability as people like to eat out and travel within the country. Amul is the major paneer producer in the country sells 65% of paneer in the entire country.

Eateries, hotels, and restaurants are the major consumers of paneer. Paneer consumption is growing by 30% annually. Thus, if you want to start a small-scale paneer production and earn lucrative money-making opportunities.

If you are into the dairy business, you can start a small unit for paneer production also as it is a highly profitable startup in India.

Popular Paneer Dishes

The major ingredient in various vegetarian and non-vegetarians is paneer. Some of the most popular dishes of paneer are Sandesh, Mattar Paneer, Paneer Tikka, Mughlai Curries, Paneer Tikka Masala, Chili Paneer, roasted Paneer, Paneer Pakora, Paneer Bhurji, Khoya Paneer, etc.

How to Make Paneer for Commercial?

To understand the commercial manufacturing of paneer you need to read the manufacturing stated below.

Standardization of milk is important to commercially manufacture paneer. It is a process of standardizing 5.8% fat of cow milk to 9.5%

When the milk is standardized, it is heated at 90-degree celcius without any hold in a jacketed closed Paneer Vat having a vessel shape. The milk cools down at 70-degree celcius. Heating the milk destroys microorganisms, retards calcium phosphate, denatures whey protein.

Coagulation takes place at 70-degree celcius by pouring 1% citric acid solution that is hot and is allowed to stir continuously when separated. Coagulum settles in next 5 minutes and the whey is drained off.

The curd that we get is hooped with cloth. It is further pressed from top at a rate of 0.5 to 1 kg cm square. Hoops need to have a surface containing holes so that it helps to whey easily. Good quality product is prepared in around 15 minutes.

The blocks of pressed paneer are removed from hoops and put into chilled water for next 2 to 3 hours. The chilled cheese is removed from water and drained out. This helps to develop texture and speed up the complete cooling process. The water that you use for cooling, must be free from bacteria.

Paneer gets packed in paper or polythene bags and placed in cold storage at around 5-to-10-degree celcius.

How can I start a paneer business?

You can very easily start a paneer business in India. You need to explore all details in the business plan that tell you about the investment you need to make and arrange for finance. The major thing in every business is money. You should arrange it first so that you can carry out all other activities.

Then you have to look for space that requires broad vision and thoughts regarding transportation and supplying raw materials. A business plan will provide you the executive summary. The business plan needs to be a part of your business plan as it contains overall information about your setup.

You need to have all the information about the team members, machinery, equipment, market analysis, and marketing strategy. The business plan that you make should have a comprehensive, and well-structured write-up that leads you to the path of success.

Only a well written business plan will help you in setting this profitable venture. You can get all your investment ready and support this start up. It will exhibit every detail about your company and make it a successful venture.

Market Analysis

Before you enter this market, segment and start your business, you will have to do a deep market analysis. This will help you minimize the risk of loss at the initial stage itself. Go to the market and do the deep market research so that you can do well in the manufacturing of paneer set up.

The market analysis can accumulate information regarding the present market trends and what all is going on in this industry. If you have a craving for this business, then you can achieve huge accomplishments. You will have to conduct deep market research for the same.

After you do a deep market analysis you will gain knowledge about the potential customers in your location. You will have detailed information about the strengths and weakness of this business venture.

To pen down all the details of market analysis can’t be done overnight. You might face a lot of problems quoting words. Hence you can use our project report and write a full fledge business plan for your enterprise.

You need to analyze past accomplishments and take wise decisions that will help you grow your business in future course of action. You need to check put that the analysis relates to internal or external environment.

Internal analysis involves things like uplifting cash flow to start business operations. The external analysis involves things like convincing leaders to give you a bank loan. Market analysis is crucial as it helps you run your business smoothly.

Target market analysis is also part of market analysis that lets you identify your target customers. You will get deep detail about the strengths, weaknesses, opportunity and threats that can hamper the progress of your business.

Market Research for Paneer Making Business Plan

Between 2014 and 2019, the paneer market in India increased at a CAGR of 12.5%. Paneer appears as a viable option because a significant portion of the population is vegetarian. Aside from that, market growth is influenced by rising population, urbanization rates, enhanced cold supply chain, and expanding deep freezer penetration. During 2020-2025, the market is expected to increase.

People in India, particularly in South India, consume a lot of paneers. This popularity is because most of the population is vegetarian, and paneer is the most acceptable substitute for fish and meat. Non-vegetarians, on the other hand, consume paneer, which is why it is available throughout the country. Paneer can be found in supermarkets, grocery stores, and department stores, among other places. The hotel and restaurant industries, according to polls, are the primary consumers of paneer.

Amul and Nestle are gaining a 65 percent share of the paneer market. In India, paneer consumption is expanding at 30% each year. As a result, starting a paneer manufacturing firm might be profitable for a new entrepreneur. Anyone already in the dairy sector can easily transition to paneer production.

Uses of Paneer

Paneer is a common element in Indian cuisine, and it can be eaten raw or deep-fried. Like people make paneer from leftover, likewise people make ghee from left over butter. Paneer is widely used in desserts, snacks, and salads. Other applications include:

  • Paneer can be used in curries, especially tomatoes, potatoes, or peas.
  • Paneer cubes are also added to the soup to provide texture.
  • Fresh paneer can be served as a dessert by boiling it in sugar syrup.
  • Although paneer has a somewhat bland flavor, it can be used as a flavor transporter.
  • As a result, it’s excellent marinated or in a curry or sauce.

What are the steps to start Paneer Manufacturing Business?

Legal Compliance

As per PFA, paneer is a product that we get from cow or buffalo milk and precipitate with sour milk, lactic or citric acid. It must not contain moisture of more than 70% and the fat content must also not be less than 50% of the dry matter. You can also use milk solid in the production of paneer.

  • Compliance with PFA Act is compulsory if you are starting a commercial paneer-making business. You need to check out all important details with your state law.
  • You will have to register your business first with ROC. Applying for a trade license is important too. You can get it from the local municipal authority.
  • Obtaining MSME Udyog Adhaar online is mandatory. It will help you get government subsidies or loans.
  • Apply for FSSAI registration and avail license as it is a food related product.
  • You will have to apply for a GST Registration also.

Paneer Production Set Up and Machinery

When you start a small-scale paneer manufacturing unit, you must have enough space to start this business. An area of at least 1000 square feet is required to start the operations.

You need to specify the space requirement for the processing area, storeroom, finished goods, packaging material, and washing.

You need to provide significant utilities like water or electricity. It is advised to read the paneer production project report before commencement of this business. A semi-automatic manufacturing unit is successful. You can make use of modern mechanized methods that can be advantageous for uniform quality of cheese, better shelf life, and increase in production amount. The basis machinery required is as follows.

  • Milk storage aluminum cans.
  • Precipitation tank of stainless steel.
  • Filter press manual.
  • Deep freezer
  • Steel Vessels
  • Laboratory Equipments
  • Cream separator

Machinery Requirement Detail

Basic machinery requirements are as follows:

  1. Milk Pasteurizer- Pasteurization of milk has two purposes: first, it kills bacteria. An aspect of Public Health – is to make milk and milk products safe for human consumption by eliminating any potentially hazardous microorganisms (pathogens). The element of Milk and Milk Products Storage – is to improve the storage quality of milk and milk products.
  2. IBT (Ice Bank Tank) Type Chilling Machine- The Ice Bank Tank (IBT) is a storage mechanism that uses ice to store energy. It can be used in the dairy business for rapid processing quickly with a specified amount of power load.
  3. Pumps
  4. Paneer Press- It is used to press the paneer following the moisture and texture requirements of the paneer. This press is beneficial for pressing paneer from coagulated milk.
  5. Weighing Machine- It determines the product’s amount, weight, and raw material composition.
  6. Milk Storage Tank- The milk storage tank is ideal for cooling and keeping milk cold until further processing. The stainless steel equipment keeps the raw milk in good condition. The milk storage tank is chosen specifically for each customer, depending on their needs and requirements.
  7. Paneer Coagulation Tank- The function of this tank is to tear milk.
  8. Balance Tanks
  9. Boiler- Steam is created using boilers. A boiler adds energy to a feedwater supply to generate steam in the generation section of a steam system.
  10. Piping
  11. Kitchen Tools
  12. Electrical Panels

Information about the machinery of paneer production is presented in the project report for study.

Raw Material Needed to Produce Paneer

Primary raw material requirements are as follows:

  • Milk
  • Citric Acid
  • Packing Material
Process of Manufacturing Paneer

Before main milk processing, milk is purchased from vendors and stored in storage tanks. A boiler is used to generate steam, which is then used in other plant processes, including the heating of milk in this case.

  1. This steam is used in the pasteurizer to heat the milk to 80 to 90 degrees Celsius for pasteurization. After an adequate holding time of 5 minutes at a high-temperature steady state, the milk is delivered to another holding tank to cool to 80 to 75 degrees Celsius. Due to the exponential nature of the cooling curve for milk, it does not require any substantial cooling time, even when no additional cooling is used. Ambient water circulation through holding tank jackets is required if faster cooling is desired.
  2. After this temperature is reached, the milk is pumped into a coagulation tank with steam jackets to keep the milk temperature constant. Once a steady-state temperature of 70 degrees Celsius for buffalo milk and 80 degrees Celsius for cow milk is reached, coagulants such as citric acid, lactic acid, and other acids are added. The milk is gently swirled by hand until the whey separates.
  3. Allow the mixture to settle and drain excess whey until it reaches the top surface of the coagulated mass. This coagulated mass is supplied to a paneer press, which presses the paneer to remove most of the water from the coagulated mass, resulting in a massive block of paneer.
  4. This paneer block is manually cut into the requisite sizes, weighed, packed, and stored in an IBT Chilling Machine before dispatch, which is necessary to prevent bacterial growth and keep the paneer fresh until delivery.

Paneer is made at home in India without the use of sophisticated gear. The steps for producing paneer at home are outlined below.

  1. Paneer is made after the milk has been processed. On the milk boiler, the milk is heated. The germs and disease-causing bacteria are killed when milk is boiled. The solubility of colloidal calcium phosphate is similarly reduced by boiling milk. The milk has to be heated to a temperature of 60 degrees Celsius.
  2. Lemon juice is added to the milk after it has been heated. Instead of lemon juice, citric acid can be used.
  3. The mixture is strained through a fine muslin cloth to separate the water from the substance.
  4. A heavy object smothers the entire thing to separate the last drop of water.
  5. After receiving the paneer, it is weighed, cut into pieces, and packed appropriately. The paneer is placed in the freezer once it has been packed.
Income Generation From Paneer production Business

As this business has a huge demand and so is the profit margin in the form of revenue generated from this business. For the wholesalers and manufacturers of paneer, the revenue is high.

You can follow all the significant details listed in the project report to earn more profit through paneer production after investing money in this venture.

Paneer’s Packaging

Freshly produced paneer has a maximum shelf life of three days. As a result, it necessitates special attention. It is cautiously treated during packaging to survive a little longer. The purpose of packing is to extend the life of the product. Packaging can be done in several ways by using Polythene to bundle the components, using Vacuum packaging machines in industrial production, and heat sealing completes the packaging. The packed paneer is then placed in the freezer.

Registration & Approvals Requirement 

Regardless of the size of their business, every entrepreneur must register with the government. You must register for the paneer producing company. Your company will be covered by insurance as a result of the registration. You must also register the company’s name to ensure its legitimacy. Follow the steps outlined below to get your business registered.

  • To start a business, you must first obtain a business license from the municipal government. The local government also gives space for establishing a new enterprise.
  • When it comes to food products, you must register them with the FSSAI. On the other hand, the PFA Act (2010) stipulates that paneer production must adhere to particular guidelines. For example, the moisture content should not be more than 70%, and the fat content should not be 50%.
  • A quality detection test is completed, and only after passing the test will you be granted MSME status. You can complete the entire procedure on the internet.
  • You must apply for a BIS certificate as a new business.
  • GST Registration
  • Udyam Registration
  • If necessary, choose a product’s brand name and secure it with a trademark.

The borrower will require a 30 KW power load, which Power Corporation will apply. The borrower must, however, acquire a DG Set for standby power.

Also Read: Milk Processing Business Plan


The Paneer Manufacturing firm requires 13 workers that include:

  1. There is one supervisor
  2. One Plant Manager
  3. 2 Skilled Workers
  4. 4 Unskilled Workers
  5. 4 Administrative Personnel
  6. A single accountant.

A good space is required to establish a small business. To start a small-scale paneer manufacturing operation, you’ll need a space that’s at least 1000-1200 square feet for seamless production. You’ll also need a processing space, a packaging area, a storage room, a storage facility for the finished product, and a transit area. A few essential resources, such as water and power, are required to start the firm. As a result, drafting a draught project report is necessary before starting a firm.


If you want to start a small paneer manufacturing firm, you’ll have to purchase raw materials. Milk, citric acid, packing material, power, fuel, water, boxes, and cheese paste are examples of raw materials. If you’re starting a small business, you should be concerned about the salaries of your staff. The cost of investment can rise to around 2 million dollars. However, when a company is founded on a large scale, the equipment cost can reach 5 lakh rupees. The price of raw materials can go two lacks. As a result, the total cost could be in the range of 5 to 6 rupees.

To start a business, you must first establish a budget. The product is sold for 250 to 300 rupees per kilogram. Aside from that, you can work directly with the hotel industry.

Before investing in the business of paneer production, you must study and download the project report.


Because of the great demand, the profit margin is rather significant. It is possible to earn up to 2500 rupees every day. The profit margin is more important for those who are wholesale dealers. If you follow the steps outlined above, you can benefit from the paneer production business even with minimal investment.

Also Read Article on: Milk Powder Manufacturing Business Plan 

Contents of Paneer Production Project Report

The following topics are covered in the Project Report of Paneer Production.

Sr. No.Particulars
1Project at a Glance
2Highlights of The Project
3General Information and Location
4Promoters Background
5Project Introduction
6The Project Proposal
7Prospect for Investment
8Potential Target Customers/Market
9Marketing Strategy
10Critical Success Factors
11Process Details and Technical Aspect
12Process Flow Chart
13Quality Specifications
14Installed and Operational Capacity
15Raw Materials and Consumables
16Machinery Power and Manpower
17Tentative Implementation Schedule
18Basis & Presumptions
19Financial Estimates
20Computation of Working Capital Requirement
21Estimated Cost of The Project
22Proposed Means of Financing
23Production and Output
24Estimated Annual Sales Turnover
25Projected Profitability Statement
26Depreciation Schedule
27Term Loan Repayment Schedule
28Debt Service Coverage Ratio
29Break-Even Analysis
30Projected Cash Flow Statement
31Projected Balance Sheet
32Permits and Business Licenses
33Important Steps To Start The Project
34Tips To Identify Suitable Project Location
The Final Words

Beginning this dairy-product-based business in India guarantees a win-win situation for paneer production business enthusiasts, with the minimum initial investment and increasing demand for paneer. At Aatmnirbhar Sena, we are ready to provide unwavering assistance to people who want to start a paneer-making business by assisting them in meeting all of the necessary standards. We also want to contribute to India’s transformation into a self-sufficient perfect society.

In the grand tapestry of the Indian market, Uttar Pradesh takes the lead, radiating economic promise. Bihar, Madhya Pradesh, Maharashtra, and Haryana join the stage, creating a vibrant business mosaic. Eastern states like Odisha and Jharkhand add diversity, while Delhi and Karnataka lead in innovation. Tamil Nadu and Gujarat bring industry prowess, and Andhra Pradesh and Telangana embrace digital frontiers. West Bengal, Kerala, and Rajasthan contribute their unique charm. Together, these regions weave a dynamic narrative of India’s economic landscape.


What is the Profit Margin in the Paneer Business?

Because of the huge demand in today market, you will make a lot of money with this business. Its trading might profit you at least Rs.2500/- each day. Apart from that, you might make more money if you sell it wholesale to a hotel or restaurant…In this manner, you may establish a more profitable business at a cheap cost and turn it into a lucrative source of income.

Who are the Paneer key players in the Indian market?

The leading players in the industry are as follows: • Gujarat Co-operative Milk Marketing Federation Ltd. • Mother Dairy Fruits & Vegetables Pvt Limited. • Karnataka Co-operative Milk Producers Federation Limited. • Tamil Nadu Cooperative Milk Producers Federation Ltd (TCMPF). • Pradeshik Cooperative Dairy Federation Ltd (PCDF). • Ananda Dairy Ltd. • Parag Milk Foods Limited. • Hatsun Agro Product Limited.

What is the paneer market growth rate in India?

The India paneer market is expected to develop at a CAGR of 13% over the forecast period of 2022-2027.

What are the most significant industry trends in the paneer market in India?

Many paneer types are becoming more widely available, including nutrient-dense and flavor-infused versions, as well as the products increasing premiumization.

what are the most extensive paneer regions?

Uttar Pradesh, Bihar, Madhya Pradesh, Maharashtra, Haryana, Odisha, Jharkhand, Delhi, Karnataka, Tamil Nadu, Gujarat, Andhra Pradesh, Telangana, West Bengal, Kerala, Rajasthan, and others are the primary areas in the Indian market, with Uttar Pradesh accounting for the most significant proportion.

In which format can I download the project report of the Paneer production business?

You can download the Project Report of Paneer Production Business in PDF format immediately.

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