How to start Paneer Manufacturing Business?

 

Cottage cheese or paneer manufacturing is a profitable and lucrative business. It comes under milk processing activity. 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.

South India is the biggest market for paneer. However, paneer is popular in almost every state in the country. Industry insiders reason that paneer may be finding acceptability because more people are eating out and traveling a great deal within the country. 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 25%- 30% yearly. Therefore, starting a small-scale paneer manufacturing project is highly lucrative for new entrepreneurs, if you are already in the dairy business, you can also consider starting a small unit with the existing one.


Production capacity

To produce 40 kg of paneer you need 500 litre milk on a regular basis. If you produce 1 ton paneer per month, eventually you will end up producing 12 metric tons paneer per year.

Registration for paneer production business

Regardless of the size of the business every entrepreneur requires to register for the business. You are required to register for paneer production business. The registration will provide insurance coverage to your business. Apart from that, you need to register the company’s name for legitimate validation. To get your business registered you need to follow the below-stated steps.

  • Ø  To start a business first you require a business that you have to arrange it from the municipal corporation. The local municipality also provides space for setting up the start-up business.
  • Ø  When it comes to the food product you need to register it under FSSAI. On the other hand, according to the PFA Act (2010), it is required to follow specific condition regarding paneer production. For instance, the moisture quantity will be no more than 70% and the fat content should not exceed more than 50%.
  • Ø  You need to go through a quality detection test. Only after passing the test you will get the MSME registration. The entire process can be done online.
  • Ø  As a start-up business you need to apply for BIS certificate.

Space requirement for paneer production business

In order to start a small business you require a proper space. To establish a paneer production unit at a small scale, you need arrange a place with a minimum area of 1000 square feet. Along with this, you need an area for processing, packing, store room, an area to store the finished product, and an area for transport. To start the business few necessary resources are crucial, for example, water and electricity. Therefore, it is clear that preparing a draft of project report is much needed before establishing the business.

Raw material for paneer production

When it comes to paneer production the raw material is has to be milk. The milk is mixed with either citric acid or sodium hypochlorite to produce paneer. Paneer expire after three days of manufacture. It should be kept in the freezer rather than out in the normal temperature.

Machineries for paneer production

It is seen that semi-automatic manufacturing unit has gained more success in India. Though technologically advanced machinery can provide immense benefits. The benefits include good quality and high production of paneer. Here are the essential machinery for paneer production.

  • ü  Aluminium cans for storing milk
  • ü  Motor coolers
  • ü  Fat remover
  • ü  Pressing tank made of stainless steel
  • ü  Boiler for heating milk
  • ü  Milk analyser
  • ü  Deep freezer
  • ü  Vacuum packing machine
  • ü  Weighing machine
  • ü  Labelling machine

Packaging of paneer

Freshly made paneer cannot last more than three days. Therefore, it requires special attention. During the packaging it is delicately handled so that it can last a little longer. The whole idea behind packaging is to increase the life of the product. The packaging can be done in various ways. You can pack the pieces into polythene. In case of industrial production vacuum packaging machine is used. The packaging is finished with the heat sealing and lastly, packed paneer is kept in the freezer.

Investment for the business

If you are opting for small scale business regarding paneer production then you have to pay for raw materials. The raw materials implies to milk, citric acid, packaging material, electricity, fuel, water, boxes, paste of cheese. If you are opening a small scale business then employees’ salary is also a matter of concerned. The cost of investment can go up to approximately 2 lakhs. On the other hand, when the business is started at the large scale the cost of equipment can go up to 2.30 lakhs rupees. The cost of raw material can go up to 2 lakhs. Therefore, the complete cost can be around 5 to 6 lakhs rupees.

In order to initiate the business, you need to set a budget. You can sell the product in the market at the rate of 150 to 200 rupees per kilogram. Apart from this, you can directly deal with the hotel industries.

Revenue generation

Since its high demand the profit margin is significantly high. One can earn up to 2000 rupees per day. Those who are the whole sale dealer, for them the profit margin is higher. If you follow the above mentioned process you can earn profit through paneer production business even after investing small amount of money.

 

 

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