HyFun scales new highs
Ahmedabad-based HyFun Foods is today the largest manufacturer and exporter of French fries. Promoted by third-generation entrepreneur Haresh Karamchandani (the family has been in the trading of potatoes and onions for over six decades now), the Rs1,450-crore company has grown exponentially in the last few years. Having emerged as a major force in the frozen potato products segment, the company, which exports over 70 per cent of its production to more than 40 countries across the globe, is looking to expand its topline to Rs5,000 crore in the next 3-4 years. HyFun Foods is currently undertaking a capex of around Rs1,000 crore to expand its processing capacity, while another Rs500 crore worth of investment is in the pipeline.
In fact, the company, founded in 2015, has pioneered exports of frozen potato products like French fries from India. While establishing itself as a high-quality supplier, HyFun has emerged as India’s leading player and largest exporter in the processed F&V (fruits and vegetables) category with a 13 per cent market share. The company currently processes around 400,000 tonnes of potatoes into a range of French fries and other potato-based ready-to-cook products. HyFun, to its credit, today processes almost one-third of the total potatoes that are processed in the country and exports 100,000 tonnes of frozen potato products to overseas markets in South East Asia, Africa, the Middle East, North America, the UK, Russia, Australia, and New Zealand.
The company, which is primarily in the potato-based ready-to-cook frozen food category (80 per cent of its portfolio comprises French fries; 10 per cent potato flakes and 10 per cent other products), also curates and makes an array of high-quality products like patties, wedges, nuggets, puffets, pizzas and many more. HyFun offers more than 25 ready-to-cook frozen snacks, which also include popular Indian snacks like Aloo Tikki, Mumbai Aloo Vada and Sabudana Patty. Another exciting and unique snack from their portfolio is ‘Potatobets’ (mashed potatoes shaped into alphabets), made especially for kids.
Backed by a modern processing facility in Mehsana near Ahmedabad in Gujarat, HyFun is today one of the most valued players in the B2B space. Its frozen food products are trusted by the biggest global brands. Apart from the food services/HoReCa segment, the company supplies its frozen products to Quick Service Restaurants or QSRs like Burger King, KFC, Pizza Hut, Domino’s Pizza, The Pizza Company, Sizzler and Sheng Siong in overseas markets. It also caters (via white labelling) to retail majors like Mydin, Lulu, Makro, Big C and Tesco Lotus.
In the domestic market, HyFun supplies to QSRs like Burger King, KFC, Pizza Hut, Subway, Taco Bell, McDonald’s and Wow Momo, as well as (via white labelling) to Amul, ITC, Godrej Tyson, Safal and Sumeru. HyFun Foods, known for adopting the latest technology across its production chain, has been accredited by the highest global standards – ISO 22000, FSSAI, Halal Trust, Sedex, FDA and British Retail Consortium (BRC).
“HyFun is a proud contributor to the ‘Make in India’ initiative. Today we export our products to more than 40 countries across the globe. We can proudly claim that we are an Indian company with global standards. Our persistent passion for delivering international quality food has brought us even closer to our consumers. Having successfully launched our products in the retail market, we are now expanding our presence on B2C platforms. We aim to democratise our delicacies, which are made from international quality ingredients and suited to the Indian palate,” says Haresh Karamchandani, Managing Director & Chief Executive Officer, HyFun Foods.
B2C foray
Having proved its mettle in the B2B space, the company has recently also entered the B2C space. Last year, HyFun unveiled its new brand identity, marking a dynamic entry into the retail segment. The company’s omnichannel strategy spans modern trade, general trade and quick commerce, with its products available on platforms like Amazon Fresh, Blinkit, Big Basket, Swiggy Instamart and Smart Bazar.
In a short span of time, it has expanded its retail footprint from six cities to over 50 cities across India. This rapid growth has been driven by rising consumer acceptance of frozen foods and significant improvements in cold chain infrastructure nationwide. The retail sales that began at Rs20 crore have crossed Rs50 crore, and now the company is confidently targeting Rs100 crore in revenue in FY2025-26. In fact, the company is looking to increase its revenue from the retail segment to around 20-25 per cent in the next 4-5 years. The Indian market in the last decade or so has shown remarkable traction, as households here are increasingly seeking convenience in the ready-to-cook food category.
The Indian frozen foods market size reached around Rs19,100 crore in 2024. Looking forward, the IMARC Group expects the market to reach Rs59,300 crore by 2033, exhibiting a CAGR of 13.4 per cent during 2025-2033. Rapid urbanisation, rising disposable incomes, changing lifestyles and dietary habits, advancements in cold chain infrastructure, increased awareness of global food trends, and improved product accessibility through online retail and supermarkets are among the key factors driving the market.
What makes HyFun an interesting story is that the company works on the unique ‘seed-to-shelf’ model and looks after everything in-house – from seed multiplication to contract farming, storing, processing of potatoes and finally delivering the best ready-to-cook snacks to the last mile with its owned supply chain model. The company has contracts with over 7,500 potato-growing farmers (covering 30,000 acres, and procuring about 400,000 tonnes annually) and procures potatoes directly from farmers through its contract farming model.
Under the agreement, HyFun provides farmers with quality seeds at subsidised rates with credit support, ensuring limited additional costs and consistent output quality. In fact, the company runs its own Seed Multiplication Programme, which ensures control over seed quality while optimising costs. The farmers are also provided with agronomy services and other extension services, including guidance for soil preparation, planting, farm management and advisory on inputs, harvesting, and post-harvest handling. With such training and advisory on quality inputs, farmers enjoy significant improvement in productivity.
“In India, where our extension services are much below the expected level, contract farming, if implemented in true spirit, can go a long way in resolving multiple challenges faced by our farmers. At a time when the government is talking about increasing the income of farmers, concepts like contract farming could be one of the options that should be encouraged. We already have multiple case studies to take cue from. This could be a win-win situation,” says Vijay Sardana, agricultural economist.
Currently, HyFun procures its entire potato requirements from Gujarat. The existing model ensures a reliable supply of quality raw material, and in return, the farmers benefit through an assured income. The Government of India’s dossier Putting Farmers First, released in December 2020, also recognised HyFun’s contribution to increasing wages of the farming fraternity.
“Globally, the consumption of processed potato products is massive. To give you an idea, in India, only about 7-8 per cent of potatoes are processed, while in Western countries, that number goes up to 70 per cent. This presents a big opportunity for India. The potatoes we grow here, which are traditionally consumed as table potatoes, can increasingly be diverted toward processing. Additionally, expanding potato cultivation and improving the supply chain benefits farmers as well. They get assured income through fixed-price contracts. Our vision is to transform Indian potatoes into world-class processed products, and export them globally. Alongside, as India’s domestic market gradually shifts toward frozen foods, we see strong growth potential both at home and abroad,” says Karamchandani, who is also evaluating the possibilities of taking the company public (IPO) in the next 2-3 years.
Karamchandani, the eldest member of the third generation, started his entrepreneurial journey in 1999 in the family business of trading in potatoes and onions. After being immersed in the world of agri-business for more than a decade, by 2010, he sensed an opportunity in potato processing, which also happened to be a forward integration of his traditional business, which was being undertaken by his family-run entity Asandas & Sons Pvt Ltd – the holding entity for the present frozen foods business. He saw the opportunity for North Gujarat to emerge as a leader in the cultivation of processing varieties of potatoes and the preferred choice for French fry varieties.
He gave his vision shape in 2015 by laying the foundation of HyFun Foods. Despite encountering hurdles and facing uncertainties, he propelled the company from obscurity to prominence, with revenue soaring from Rs50 crore to an astounding Rs1,000 crore in just 7 years. His vision for HyFun Foods extends beyond commercial success: it’s about creating a legacy of innovation, sustainability, and social responsibility. Through strategic expansion and product diversification, he has positioned the company as a global leader in the food processing industry, enriching lives and communities along the way.
Building the ecosystem
One of HyFun’s pivotal contributions has been revolutionising the frozen foods industry by pioneering the export of frozen French fries. Under his leadership, the company has become the largest exporter of potato-based frozen foods, opening new avenues for growth and establishing a strong presence in international markets.
Against all odds, he dared to dream, and in doing so, he transformed a vision into reality, leaving an indelible mark on the world of business. His commitment to innovation and adaptability has shaped HyFun Foods into a symbol of quality, innovation, and progress in the food processing sector.
“For our family, getting into the frozen foods business was a conscious move since we could see limited scope in our trading business. Moreover, we got into this business as an extension (forward integration) to our family business of trading in potatoes, which is the primary raw material for us now. Further, we could easily see the way the frozen foods market was shaping up in the country and the emerging opportunity in the global market as well,” states the HyFun CEO, who believes that HyFun’s emphasis on adopting the best technology towards the production of high-quality products has been rewarding and has helped the company in establishing itself strongly in the market.
“While the domestic Indian market is growing, overall consumption here is still relatively limited. The real expansion has come from exports. We primarily supply to Asian countries, South East Asia, and the Middle East that previously relied on imports from Europe and the US. Now, India is steadily positioning itself as a competitive alternative supplier on the global stage, and as a company, we have played a crucial role,” believes Karamchandani.
Going forward, the company is expanding its footprint in a significant manner to tap the emerging opportunities in both the export and domestic markets. In the last 5 years, it has invested around Rs600 crore in ramping up its processing facilities in Mehsana. The company boasts modern plants for processing 110,000 tonnes (across three lines) per annum of French fries; 24,000 tonnes of potato flakes (two lines); 15,000 tonnes of potato specialities (two lines) and 6,000 tonnes of baked snacks (one line).
The company is currently investing around Rs1,000 crore in expanding its production in Mehsana. The expanded facilities will see its French fries capacity increasing to around 142,000 tonnes and hash brown capacity to around 28,500 tonnes by March 2026. Moreover, the company is also looking to invest around Rs500 crore in Madhya Pradesh to set up a greenfield processing facility. The project is slated to be commissioned by FY28.
With all these developments in place, HyFun has positioned itself quite strongly in a market where it is competing with players like McCain, Iscon Balaji Foods, Banas Dairy, J K Foods and Agristo. The company has achieved this by focusing on a ‘seed-to-shelf’ model, leveraging technology and strong relationships with farmers, and expanding into both B2B and B2C segments. Apart from favourable market conditions that have helped it, the company has focused on manufacturing high-quality products and to achieve that, it has invested heavily in putting up a modern and integrated processing facility where the entire production line is fully automated.