How to start Paneer Making Business in 2021 – Complete Guide

How to start Paneer Making Business plan in India ( Paneer Making Business plan start, cost, profit)

Doing the cheese business is a profitable and lucrative business. It comes under milk processing activity. Paneer has been used more in some countries of Asia like India, Pakistan, Bangladesh, Afghanistan, etc. However, the production of cheese is now spreading all over the world. Paneer is sold in two different categories in the Indian market. One for sale fresh and the other in packaged form. However, fresh paneer tends to spoil more quickly than packaged paneer. So any person can start a paneer manufacturing business with some investment. You read this article of ours to know how this happens.

Market Potential of Paneer Manufacturing

Paneer is the largest market in South India. Although paneer is popular in almost every state of the country. The demand for paneer is high because in today’s time people whether vegetarian or non-vegetarian are preferring to eat food outside. And are also traveling to different places inside the country. That’s why today paneer is available everywhere. It is sold in various grocery stores, supermarkets, departmental stores, etc. Since people mostly go out to eat, there is always a demand for it in hotels and restaurants, and hence the hotel industry is the major consumer of cheese.

At least 65% of branded paneer like Amul and Nestle are being sold in the country. But the consumption of paneer in India is definitely increasing by 25 to 30% annually. So starting a small-scale paneer manufacturing business can be very lucrative for new entrepreneurs. If you are already in the dairy business then you can also consider starting a small unit of cheese making business along with the existing business.

Paneer Production Capacity

If you process about 500 liters of milk every day, then it will produce about 40 kg of paneer. With the production of 1 ton of paneer per month, 12 metric tonnes of paneer can be produced annually.

Paneer Making Business Registration

Whether the business is big or small, it is necessary to register everyone. You will also have to register the cheese-making business as well as get the business name and insurance cover. Following registration is required for this business –

• To run this business, you will first need a manufacturing and business license, which you will have to obtain from your local municipality.
• After this it is a food item, so you will also have to get FSSAI registration , but before that according to the PFA Act (2010), it is mandatory for you to fulfill certain conditions for the production of paneer, which is that it should not contain more than 70% moisture. And the fat content should not be less than 50%.
• After passing this test , you will also have to register in MSME Udyog Aadhaar , which you can also do online.
• Apart from all this, you are also required to apply for getting BIS certificate.

Place Requirement for Paneer Making business

In starting a small-scale paneer manufacturing unit, you have to ensure a place. And an area of ​​at least 1000 square feet is enough to start with. Apart from this, you will also need a processing area, storeroom, space for packing material, storage of finished goods as well as space for transportation. Apart from this, it is also necessary to provide you facilities like electricity and water. Therefore, before starting the business of cheese, prepare a project report of cheese manufacturing, then only you will be able to establish the business in a better way keeping all things in mind.

Raw Material for Paneer Business

The major raw material required to start the cheese business is milk and sodium hypochlorite or citric acid. Through which cheese is made. Paneer is one such product that spoils quickly. It can remain fresh only for 3 days and that too it is always kept in the freezer. If it is kept at a normal temperature, it will not last more than a day.

Machinery for Paneer Business

Generally, the semi-automatic manufacturing unit has been more successful in this area. However, modern and technologically advanced machinery provides various benefits such as good quality, high yield of cheese, extended life of cheese and highly nutritious cheese, etc. Here we are going to tell you about some machinery which can help you in running this business –

• aluminum cans for storing milk
• motorized cooler
• Stainless Steel Precipitation Tank
• fat remover
• boiler to heat milk
• milk analyzer
• Vacuum Packing Machine
• deep freezer
• weighing machine
• labeling machine etc. for labeling

All these are available on online websites like Indiamart or Alibaba. From where you can buy it online.

Home base without machine Paneer Making Process

Paneer is very easy to make, you can also make it at your home. Here we are going to tell you about the easy process of paneer, which will help you to start a small paneer business –

• To start the production of paneer, first of all the processing of milk is required. This means that the milk is first heated through the milk boiler. Milk is heated because it destroys the disease-causing germs present in the milk. It also effectively lowers the solubility of colloidal calcium phosphate. Milk is heated to about 60 degree centigrade.
• Then a few drops of lemon juice or a few drops of citric acid are added to separate the water and solids from the milk.
• After that it is filtered through a muslin cloth, and its water is separated.
• For this, you keep it under some heavy thing, so that its water gets completely separated and we will get paneer.
• Then weigh it on a certain weight and cut it into separate pieces, and pack it and keep it in the freezer.

Paneer Packaging

The life of the paneer is very short, so special attention is paid to its packaging. The packaging itself can extend the life of the paneer. Generally, you can pack paneer blocks in polyethylene pouches. A vacuum packing machine can also be used for its packing. After this, the heat seal process is applied, and it is kept in the deep freezer.

Total Cost or Investment for Paneer Business 

If your idea is to start this business on a small scale, then you have to pay money on some raw materials and other things like milk, transportation cost, citric acid, packaging material, electricity, fuel, transportation of cheese, boxes, employee’s salary, etc. have to spend. For this, you may have to invest up to 2 lakh rupees. Also when you are starting it on a large scale, you may need Rs 2.30 lakh for the cost of machinery and also around Rs 2 lakh for some raw materials. And it may take around 5-6 lakhs to establish the business completely.

To start the business of cheese, you should determine its price. For this, you can sell paneer in the market at the rate of about 150 to 200 rupees per kg. Apart from this, if you can take orders from any hotel or restaurant, then definitely take it. For this, you can put the price of paneer according to the wholesale, which will be very beneficial.   

The cheese business  profit margin (Profit Margin For Paneer Business )  

Since its demand is very high in today’s time, so you will get a lot of profit in this business. You can earn at least 2000 rupees per day from its business. Apart from this, if you sell it wholesale with an order from a hotel or restaurant, then you can get more profit from it.

In this way, by starting a more profitable business at a very low price, you can make it a means of earning a lot of money.