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.

How to Download Project Report of Paneer Production

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.

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 paneer. This popularity is that 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 per cent 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.


Paneer is a common element in Indian cuisine, and it can be eaten raw or deep-fried. 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 flavour, it can be used as a flavour transporter.
  • As a result, it’s excellent marinated or in a curry or sauce.

Machinery Requirement 

Basic machinery requirements are as follows:

  1. Milk Pasteurizer. Pasteurization of milk has two purposes: first, it kills bacteria. An aspect of Public Health – 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 – 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 

Primary raw material requirements are as follows:

  • Milk
  • Citric Acid
  • Packing Material

Process of Manufacturing

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.

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 licence 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.

Subjects covered in the project report of Paneer Production.

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

Sr. No.Particulars
1Project At A Glance
2Product Introduction
3Uses & Market Potential
4Machinery Requirement
5Raw Material
6Manufacturing Process
7Project Infrastructure
8Land And Building
10Power And Fuel
11Bank Term Loan
13Approvals & Registration
14Implementation Schedule
15Cash Flow Statement
16Projected Balance Sheet
17Projected Profitability Statement
18Computation Of Making Of Paneer
19Working Capital Requirement
20Computation Of Depreciation
21Repayment Schedule Of Bank Loan
22Calculation Of D.S.C.R
23Computation Of Sale
24Computation Of Electricity
25Break Even Point Analysis
26Financial Indicators/ Ratio
27List Plant & Machinery

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: Milk Powder Manufacturing Business Plan 

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.


What is the Profit Margin in Paneer Business?

Because of the huge demand in today’s 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.

Paneer key players in the Indian market?

The leading players in the industry are as follows:

What is the paneer market’s growth rate in India?

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

Also Read: Ghee Manufacturing Business Plan

What are the primary market forces?

Market development is predicted to be aided by significant market factors such as rising disposable incomes, increasing population, ease of availability, expanding distribution channels, and the product’s widespread use as a component of Indian traditional cuisine.

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 flavour-infused versions, as well as the product’s increasing premiumization.

According to the market data, what are the most extensive paneer regions?

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

What are the industry’s most important sectors?

Retail and institutional sectors are the most important in the Indian market.

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

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

Also Read: Curd Manufacturing Business Plan


You may also like…