India’s dairy industry is increasingly shifting from traditional fluid milk toward higher-margin, value-added products, as consumers show greater interest in protein-rich and differentiated dairy offerings. Milky Mist Dairy Food Ltd. is strengthening its position in this transition with the commissioning of a new Skyr and Greek Yogurt manufacturing plant using ultrafiltration technology at its integrated facility in Perundurai, Tamil Nadu.
Announced on September 10, 2026, the new facility has been established with an investment of approximately ₹40 crore. It increases Milky Mist’s processing capacity for Skyr and Greek Yogurt to 150 tonnes per day, compared with the 20-tonne-per-day facility the company originally commissioned in 2022.
Focus on High-Protein Dairy Demand
Milky Mist was the first company in India to introduce ultrafiltration technology for Skyr and Greek Yogurt production in 2022. According to the company, annual demand for the category has increased by more than 50% since the original plant was established.
Demand for high-protein yogurt has been particularly strong, having more than doubled in recent months. The significant increase in capacity is therefore intended to address rising demand while supporting the company’s broader premiumisation strategy.
Ultrafiltration allows manufacturers to concentrate milk components and produce yogurt with higher protein density. For consumers increasingly seeking protein-rich foods, this makes products such as Greek yogurt and Skyr attractive alternatives to conventional yogurt.
Milky Mist’s Expanding Product Portfolio
The new facility comes as Milky Mist records strong growth across several value-added dairy categories.
In Q1 FY27, the company’s consolidated revenue increased 43.35% year-on-year to ₹974.52 crore, compared with ₹679.85 crore in Q1 FY26. Revenue was also 14.55% higher than the ₹850.69 crore recorded in Q4 FY26.
Consolidated net profit reached ₹64.67 crore, compared with ₹6.53 crore in the corresponding quarter of the previous year.
| Category | Q1 FY27 Revenue | YoY Growth |
|---|---|---|
| Paneer | ₹248.29 crore | 34% |
| Cheese | ₹137.12 crore | 38% |
| Curd | ₹123.79 crore | 27% |
| Ice Cream | ₹102.25 crore | 60% |
| Yogurt | ₹84.52 crore | 153% |
Yogurt was the fastest-growing category, with revenue rising 153% year-on-year to ₹84.52 crore. The new plant could allow the company to convert strong underlying demand into higher volumes and further increase yogurt’s contribution to its overall business.
Paneer remained the company’s largest category, accounting for approximately 26–27% of Q1 FY27 revenue.
Value-Added Dairy Drives Industry Transformation
Milky Mist’s investment reflects a broader structural shift in India’s dairy industry. Market intelligence firm 1Lattice estimates that India’s value-added dairy market increased by approximately 80% between FY20 and FY25, reaching more than ₹1.46 lakh crore.
The shift is being supported by consumers moving toward organised dairy products such as packaged curd, ghee, buttermilk, lassi and specialised yogurt products.
Value-added categories can also offer substantially higher margins than traditional fluid milk. Private processors are consequently directing more capital toward differentiated products instead of simply expanding conventional milk-processing capacity.
Part of Perundurai Expansion Programme
The Skyr and Greek Yogurt facility forms part of Milky Mist’s broader expansion and modernisation programme at Perundurai. The programme was among the objectives associated with the company’s IPO and includes investments in additional specialised dairy processing capabilities.
Milky Mist, headquartered in Perundurai, has built a diversified portfolio spanning paneer, cheese, curd, butter, ghee, yogurt, ice cream and UHT products. By June 2026, the company had more than 640 SKUs across 22 categories.
The commissioning of the new yogurt plant therefore represents another step in Milky Mist’s strategy of moving beyond conventional dairy products toward higher-value, protein-focused categories.