HyFun Foods, a producer of frozen potato products, has announced plans to invest approximately INR 850 crore in establishing three new plants in Gujarat. This strategic expansion aims to fuel business growth and reach a target annual revenue of INR 5,000 crore by 2028. Additionally, the company will allocate INR 150 crore towards the establishment of a water treatment facility in Gujarat.
HyFun Foods operates five potato processing facilities located in the Mehsana district of Gujarat, boasting a combined annual capacity of 2.5 lakh tonnes.
HyFun Foods offers an extensive range of over 20 ready-to-cook frozen snacks, including favorites like french fries, aloo tikki, burger patties, and nuggets. These products are distributed across various segments, including the HoReCa (hotels, restaurants, and canteens), Quick Service Restaurants (QSR), and retail markets. Notably, HyFun Foods supplies its products to well-known brands such as Burger King and KFC.
Haresh Karamchandani, MD and CEO of HyFun Foods, said, “We are setting up three new plants in Mehsana for potato flakes, french fries and potato speciality products.”
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He said the construction of potato flakes plant has started and will be operational this year while the other two will come up by 2025-end.
Asked about investments on these three new plants, Karamchandani said it would be around INR 850 crore.
That apart, he said the company plans to set up a water treatment plant, to treat waste water from its factories, with an investment of INR 150 crore.
The investments of INR 1,000 crore will be funded through internal accruals and bank loans.
Asked about turnover, Karamchandani said it would be around INR 1,300 crore this fiscal as against INR 1,000 crore in the previous year. In volume also, it expects to achieve 30-35 per cent growth.
Out of the total turnover, the export market contributes 70 per cent.
“We are targeting a revenue of INR 2,000 crore in the next fiscal and INR 5,000 crore by 2028,” he said, adding that exports and domestic revenue would become equal by then.
Karamchandani said the company is also expanding presence in retail, both physical and online. Its products are available in stores of Reliance Fresh.
He said the company is also looking to expand portfolio of frozen food items beyond potatoes.
It might go for third party manufacturing to introduce such products.
HyFun Foods buys potatoes from Gujarat, Uttar Pradesh and Madhya Pradesh.
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