Frozen potato products manufacturers and exporters HyFun Foods is planning to invest Rs 1,500 crore to set up units in Gujarat and Madhya Pradesh to support its expanding exports and domestic market presence, a senior company executive has said.
“œWe are in the process of adding capacity and ensuring raw potato availability. We are setting up a greenfield manufacturing unit near Ahmedabad, in a town called Mehsana, with a capex of around Rs 1,000 crore. We expect this unit to be operational by January 2027,” HyFun Foods Managing Director and Group CEO Haresh Karamchandani told PTI.
He added that after the Gujarat facility, the company has plans to set up another greenfield unit in Madhya Pradesh with a capex of about Rs 500 crore, as it is smaller capacity initially and will gradually be expanded.
Currently, the company has five manufacturing units in Gujarat.
“Once the Gujarat plant becomes operational, we will start scouting for land in MP for setting up a manufacturing facility. This will take another two years to become operational. So it’s a large investment we’re doing and based on which we’ll also be getting into newer markets,” he stated.
Following the expansion, HyFun Foods French fries production capacity will rise to 2,45,000 tonnes annually, while its potato specialties capacity will increase to 40,000 tonnes.
He said the Gujarat and MP units will be funded by bank debt and internal accruals.
“We will eventually be going for an IPO, let’s say 2-3 years from now. And in between, there could be some private equity, fundraise as a stepping stone to the IPO, which likely to be in the range of Rs 1,500-2,000 crore… We have not yet decided,” he added.
HyFun Foods is divided into three segments — 40 per cent HoReCa (hotels, restaurants and catering), 40 per cent QSRs (quick service restaurants) and the rest 20 per cent is in consumer or retail under HyFun brand.
He said the exports-domestic ratio is 70:30.
“We have been focusing on exports and hence this company has grown. We have presence in over 40 countries, which we plan yo increase to 100 in the coming years, he said.
He said consumption of frozen food is still at a starting point in the Indian market.
“However, we are seeing a shift in the consumption pattern, from fresh to frozen with convenience being the key driving factor… We have introduced pizzas, momos. We believe Indian consumers need a lot of variety in food. We are also getting into more Indian ethnic snacks products like samosas, parathas, among others,” he added.
The company had a revenue of Rs 1,450 crore in 2025-26, and is expected to reach Rs 3,500 crore by FY28, he said.
“After the first full year of operations of the new plant in Gujarat, which will be FY28, our revenue should touch Rs 3,500 crore,” Karamchandani added.
