The factory is planned to cover around 60,000sq ft and is estimated to cost around £13m to build.
The facility will be used to bake the company’s open-topped bread and a selection of rolls, all of which use longer fermenting periods.
It will allow Geary’s to make one million loaves and five million rolls a week, twice its current capacity.
Jason Geary, managing director of Geary’s bakery, told the Leicester Mercury: "We are at 85% capacity in our current factory and, to allow us to keep increasing our capacity, we need another bakery to keep up with demand.
He added: “This will also enable Geary’s to provide great working conditions for all our employees who have played a big part in Geary’s success."
The business turned over £17 million in 2015 and is on track to reach the managing director’s £20m target this year, with hopes to grow sales to £30m by 2022 through expansion.
In April 2014, Geary’s bakery joined the Federation of Bakers as its 10th full member.