How can I start paneer Manufacturing business?

How To Start Paneer Manufacturing Business

What is Paneer?

  • Paneer is one of the most popular traditional milk products. This is produced by processing of milk by heating and acid coagulation. It is consumed extensively all over the country.
  • In the Indian market, we find paneer in two different categories. One is for fresh selling and another is packaged paneer. However, fresh paneer has a small shelf life compared to packaged paneer. Any individual can start a paneer manufacturing unit with a moderate startup capital investment. Also, the manufacturing process is simple.
  • Paneer is a fresh cheese.  It is an unaged, acid-set, non-melting farmer cheese or curd cheese. Generally, paneer is famous in almost Asia Pacific countries like India, Bangladesh, Pakistan, Afghanistan, etc. However, the production of paneer is now spreading throughout the world.

  • The paneer making business is considered as the profitable and lucrative. It falls under the milk processing technique. Paneer is widely consumed by some Asian countries like, India, Pakistan, Bangladesh etc. Of late many Western countries other than Asian countries are getting involved in paneer production.
  • Paneer is widely consumed by the people of India more precisely by the people of South India. The reason behind this popularity is maximum of the population is vegetarian and they find paneer as the best replacement of fish and meat. However, the non-vegetarians also consume paneer and this is why it is available everywhere in the country. You can get paneer in supermarkets, grocery stores, departmental stores, etc. According to the surveys, the hotel and restaurant industries are the largest consumer of paneer.
  • The brand like Amul and Nestle are acquiring 65% of the paneer market. The consumption of paneer in India is increasing up to 30% per year. Therefore, startup business on paneer production can be lucrative to the new businessman. The one who is already in dairy business can easily start a paneer production business.
Eight steps to follow to start a profitable Paneer Processing business
  1. Create a Business Plan
  • A business plan is a key to success for any business. The required capital for starting the business is a bit high as machinery are themselves expensive. A well-crafted business plan is required to speak of the operational process of the business in a profitable manner. Legal guidelines will be strict and strong which has to be followed according to the law. The three steps in a business plan can include
  •  Do some Market Research: If you are starting with less capital, the immediate market you must concentrate on is your local community.  Research the local market and analyze the demand of local customers. Go to retail markets and find out what kind of items is selling most and what the taste of your local market.

     2. Choose a Location for Paneer Processing Factory

  • Find a location, where distribution cost is low. The location should be nearer to the suppliers who will supply raw materials to your plant. It also should not be too far from the immediate market where you will be supplying finished goods.

3. Name your Paneer Processing Business

  • Select a name that people can relate to your Paneer processing company. Do not forget to check the availability of a similar domain name to the company name. This helps you in creating a website similar to the company name.

4. Make the Business Legally Compliant

  • In starting any Paneer processing business you must obtain the following registration and license from the concerned department.
  • Register your firm with ROC as per the management liability and mode of operation.
  • Obtain Trade License from local Authority
  • Open a current account for a cash transaction
  • Obtain Udyog Aadhaar MSME registration.
  • Obtain FSSAI license
  • Apply for GST registration number.

5. Machine & Equipment for Paneer Processing

The Paneer Processing Plant is basically composed of :

  •  Milk Reception Section
  • Paneer Vat
  • Paneer Hoops
  • Paneer Press (Pneumatically operated)
  • Paneer Cutting Machine
  • Vacuum Sealing Machine
  • Paneer Cold Room

6. Cost of Starting Paneer Processing Unit

  • It is without saying, the cost and investment will mainly depend on the scale of business and production output. The cost of a paneer manufacturing plant with a capacity of 500ltrs/her is around Rs. 4 Lacs. You also need other machinery and equipment for making commercial paneer production. Furthermore, an area of a minimum of 2000 sq. ft will be needed to run the paneer manufacturing unit.
  • Overall, the cost of starting a paneer manufacturing plant business will be Start From Rs. 5 Lacs For Small Plant.

7.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.

8. Promote your Products

  • 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 a must in the and paneer manufacturing business.

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