HyFun Foods, a prominent exporter of frozen fruits and vegetables, is set to make a substantial investment of Rs. 1,100 crores in Gujarat. The investment aims to establish three cutting-edge manufacturing plants, as revealed by Haresh Karamchandani, the CEO and MD of HyFun Foods. This move is driven by the escalating demand both in domestic and export markets.
The investment will be distributed across the current and upcoming financial years, with approximately Rs. 250 crores already allocated in the current fiscal year. The new plants will focus on producing frozen French fries, potato specialties like hash browns, and potato flakes.
Presently, HyFun Foods boasts a total manufacturing capacity of 150,000 tons of finished products and around 320,000 tons of processed potatoes. With the commissioning of the new plants, these figures are projected to increase significantly to 300,000 tons of finished products and the processing of 500,000 tons of raw potatoes.
The expansion also entails an increase in the manufacturing area from 20 acres to 50 acres. While currently procuring potatoes mainly from North Gujarat, the company is also exploring opportunities in Madhya Pradesh and Uttar Pradesh to enhance its procurement volumes.
HyFun Foods, which achieved a revenue milestone of over Rs 1,000 crore last year, is targeting revenues of Rs. 1,300 crores for the current fiscal year and aims to reach Rs. 2,000 crores by FY25. Additionally, the company has ambitious plans to quadruple its production and achieve revenues exceeding Rs 5,000 crore within the next five years.
In line with its India strategy, HyFun Foods aims to revolutionize kitchen experiences by offering quality and convenience through wider distribution and an expanded range of both Indian and global cuisines. The company seeks to position itself as a preferred snacking option for various customer segments, including QSRs, restaurants, hotels, and cafes.
HyFun Foods collaborates with over 6,000 farmers and anticipates procuring over 300,000 tonnes of potatoes this year. While currently 70% of its revenue comes from exports, the company foresees a shift in this ratio to a more balanced 50:50 split between exports and the domestic market over the next five years.
With exports reaching approximately 40 countries presently, HyFun Foods is poised to expand its global footprint while maintaining its status as the preferred partner for QSRs and food service establishments.