Gujarat-based HyFun Foods has unveiled an ambitious expansion strategy aimed at nearly tripling its revenue to ₹5,000 crore by FY29, transforming itself from a potato processor into a full-fledged frozen foods powerhouse. The company is also poised to significantly increase its potato procurement—from 0.35 million tonnes currently to 1 million tonnes annually—by ramping up its contract farming network across key agricultural states.
“We are moving beyond just potato-based products and positioning HyFun as a comprehensive frozen foods company,” said Haresh Karamchandani, Managing Director and Group CEO of HyFun Foods. The company reported a turnover of ₹1,350 crore in FY25 and expects it to grow to ₹1,600 crore in FY26 and ₹2,000 crore in FY27, driven by increased production capacity and expanded product offerings.
Through its agri-arm HyFarm, the company will scale up potato procurement by nearly threefold using a contract farming model in Gujarat, Madhya Pradesh, and Uttar Pradesh. The number of contracted farmers is expected to grow from 7,000 to 30,000 over the next four years.
HyFarm assures farmers of buy-back prices before sowing season, shielding them from market volatility. For instance, in September 2024, contracted farmers were offered ₹ 13.50 per kg, while production costs stood at ₹8–₹ 8.50/kg, yielding an average net income of ₹65,000 per acre over a four-month cropping cycle.
“Processing potato varieties offer farmers income stability, unlike table varieties that are subject to price crashes,” Karamchandani explained.
HyFarm has also established the ‘Paathshala’ model farms in North Gujarat districts like Sabarkantha and Banaskantha, where the best agricultural practices are demonstrated. Farmers receive high-quality seeds, customized nutrition plans based on soil testing, and real-time digital advisories.
“By combining agronomy support with digital tools, we’re increasing productivity and ensuring consistent raw material supply for our processing units,” said Soundararadjane S, CEO of HyFarm.
Currently, 70% of HyFun’s revenue comes from exports to over 40 countries, supplying frozen potato products to global quick service restaurants (QSRs) such as Burger King, KFC, Domino’s, and Pizza Hut. The company plans to rebalance its revenue mix to 50:50 between exports and domestic sales by FY29, as the Indian frozen foods market sees rapid growth driven by urbanization and changing lifestyles.
To support its growth ambitions, HyFun will invest ₹1,000 crore over the next two years to expand its potato processing capacity. The company is also exploring entry into the capital market within the next 2–3 years to fund its expansion into newer geographies beyond Gujarat, especially Uttar Pradesh and Madhya Pradesh, two of India’s largest potato-producing states.
Founded in December 2015, HyFun emerged as an industry leader by 2021, processing 200,000 tonnes of potatoes annually. It follows a “seed-to-shelf” model, ensuring quality control and traceability from the farm level to the final packaged product.
“With robust backward integration, farmer partnerships, and rising demand for frozen convenience foods, we believe we’re well-positioned to lead the next phase of growth in India’s food processing sector,” Karamchandani