Gujarat-based HyFun Foods, a leading supplier of frozen potato products to international chains like Walmart, KFC, and Burger King, has announced its expansion into the onion processing segment. The company will introduce contract farming for onions in Maharashtra and Madhya Pradesh and plans to launch frozen onion products in the coming years.
Onion Processing Initiative
HyFun Foods’ foray into onion processing is based on its successful contract farming model for potatoes, which has been in place since 2015. The company’s trial plantation for onions will begin in November 2025, focusing on sourcing high-quality produce from Maharashtra and Madhya Pradesh.
According to Haresh Karamchandani, Managing Director and CEO of HyFun Group, the company aims to process frozen onion products like cubes and slices, catering primarily to the HoReCa (Hotels, Restaurants, and Catering) and QSR (Quick Service Restaurant) segments. The full-scale rollout of onion-based processed products is expected within the next three to four years.
₹500 Crore Potato Processing Plant in Madhya Pradesh
HyFun Foods has also announced a ₹500 crore investment in Madhya Pradesh to set up a potato processing plant between Indore and Ujjain. This will be the company’s first potato processing facility outside Gujarat, marking a significant expansion in its production capacity.
The company has been working extensively in the Malwa region, covering Indore, Ujjain, Shahjahanpur, Dewas, and Chhindwara. The new unit will enhance its processing capabilities to meet the rising demand for frozen potato products in India and global markets.
HyFun’s Growth in Potato Processing
HyFun Foods entered the potato processing business in 2015, initially engaging 200 farmers in North Gujarat to produce 10,000 tonnes of potatoes. Over the years, the company has significantly expanded its network, and by 2025, it aims to produce 4 lakh tonnes of potatoes, working with 7,500 farmers, primarily from Banaskantha and Sabarkantha districts in Gujarat.
To further strengthen its operations, the company is investing ₹1,000 crore in Gujarat, which will increase its production capacity by an additional 20 tonnes per hour for French Fries and 4 tonnes per hour for hash browns.
HyFun Foods’ Strategic Expansion
With its onion processing initiative and the new potato processing plant in MP, HyFun Foods is reinforcing its leadership position in the frozen food industry. The company’s contract farming model has already proven successful in ensuring consistent quality and supply of potatoes, and it aims to replicate the same with onions.
As consumer demand for frozen and processed food products grows, HyFun Foods’ latest investments are expected to strengthen its market presence and supply chain in both domestic and international markets.