Frozen potato products manufacturer HyFun Foods is planning to invest ₹1,500 crore to establish manufacturing units in Gujarat and Madhya Pradesh to support its expanding exports and domestic market presence. According to reports from PTI, the company is currently in the process of adding capacity and ensuring raw potato availability. The expansion includes setting up a greenfield manufacturing unit near Ahmedabad in Mehsana with a capex of around ₹1,000 crore, expected to be operational by January 2027. As reported by ETManufacturing, Managing Director and Group CEO Haresh Karamchandani stated that once the Gujarat plant becomes operational, the company will start scouting for land in Madhya Pradesh for setting up another manufacturing facility, which will take another two years to become operational.
Following the expansion, HyFun Foods frozen fries production capacity will rise to 2,45,000 tonnes annually, while potato specialties capacity will increase to 40,000 tonnes. As reported by PTI, the company currently operates five manufacturing units in Gujarat and plans to set up another greenfield unit in Madhya Pradesh with a capex of about ₹500 crore, which will be smaller capacity initially and gradually expanded. The Gujarat and MP units will be funded by bank debt and internal accruals. According to ETManufacturing, Karamchandani emphasized that this large investment will also enable the company to enter newer markets.
According to PTI reports, HyFun Foods Managing Director Haresh Karamchandani stated the company will eventually be going for an IPO, likely in 2-3 years from now. The IPO is expected to be in the range of ₹1,500-2,000 crore. Between now and the IPO, there could be some private equity fundraise as a stepping stone to the public offering. The company currently operates in three segments: 40% HoReCa (hotels, restaurants and catering), 40% QSRs (quick service restaurants), and 20% consumer retail under the HyFun brand. As reported by ETManufacturing, the company has not yet decided on the specific timing for the private equity fundraise.
As reported by PTI, the company currently has an exports-domestic ratio of 70:30 and maintains presence in over 40 countries, which it plans to increase to 100 in the coming years. HyFun Foods is focusing on exports and has been introducing new products including pizzas, momos, and Indian ethnic snacks like samosas and parathas. According to ETManufacturing, Karamchandani noted that consumption of frozen food is still at a starting point in the Indian market, but there is a shift in consumption pattern from fresh to frozen with convenience being the key driving factor. The company had revenue of ₹1,450 crore in 2025-26 and is expected to reach ₹3,500 crore by FY28, with the first full year of operations of the new Gujarat plant contributing to this growth.
