HyFun Foods, which supplies potato products to global fast-food chains including McDonald’s and KFC, is planning a ₹2,000 crore IPO as demand for frozen food grows in India.
HyFun Foods, the Ahmedabad-based frozen potato products manufacturer that supplies McDonald’s and KFC, is planning an initial public offering (IPO) of up to ₹2,000 crore by late 2028 as it expands production capacity and targets rising demand in India.
Managing Director and Group CEO Haresh Karamchandani said the company expects to begin preparations for the listing in mid-2027. The issue will largely comprise fresh shares, with the proceeds intended to fund expansion.
HyFun generated ₹1,450 crore in revenue in FY26 and expects that figure to rise to nearly ₹3,500 crore by FY28. The company is banking on new manufacturing capacity and stronger demand from regional restaurant chains, hotels and retail customers.
“The industry is at the cusp of a shift from fresh to frozen,” Karamchandani said.
HyFun Targets Growth in India as Export Share Falls
Exports to more than 40 countries currently contribute around 75% of HyFun’s revenue. However, the company expects that share to decline to about 50% over the next five years as its domestic business expands.
Global restaurant chains account for around 40% of HyFun’s Indian revenue, equivalent to roughly 10% of its total sales. The company expects this share to fall to around 30% over the next two years as it builds relationships with more local businesses.
Its Indian customers include Blue Tokai, PVR Cinemas and Wow Chicken, reflecting its push beyond international quick-service restaurant chains.
HyFun outlined its intention to pursue a stock market listing in October 2025, linking the plan to the start of operations at its new manufacturing facility. The company has also identified Southeast Asia, West Asia and the Far East as important export markets.
₹1,500 Crore Expansion to Double Processing Capacity
HyFun is investing around ₹1,000 crore in a greenfield manufacturing facility in Gujarat’s Mehsana district, which is expected to begin operations by January 2027. The plant will become its sixth manufacturing unit, adding to five existing facilities in Gujarat.
The company is also planning another greenfield facility in Madhya Pradesh at an estimated cost of ₹500 crore, taking its planned investment in the two projects to approximately ₹1,500 crore.
The Mehsana facility is expected to add annual production capacity of 135,000 tonnes of French fries and 25,000 tonnes of potato specialties. Once operational, the company’s total capacity is projected to reach 245,000 tonnes of fries and 40,000 tonnes of specialties.
Its overall potato processing capacity is expected to increase from 350,000 tonnes to around 700,000 tonnes.
To support its expansion, HyFun raised ₹1,500 crore, approximately $173 million, from global investment firm Davidson Kempner in June 2026.
French Fries Drive HyFun’s Product Business
Founded in 2015 by third-generation entrepreneur Haresh Karamchandani under parent company Asandas & Sons, HyFun derives around 80% of its product sales from French fries. Potato flakes contribute approximately 10%, according to a Business India profile.
Its portfolio also includes potato wedges, hash browns, vegetable snacks, aloo tikki, baked pizzas and pies. Other products include mozzarella sticks, onion rings and momos. The company says its products are entirely vegetarian.
Beyond McDonald’s and KFC, its quick-service restaurant customers include Burger King, Pizza Hut, Domino’s and Subway. HyFun also sells consumer products through online grocery and quick-commerce platforms, including Blinkit, Swiggy Instamart, Amazon Fresh and BigBasket.
The company sources potatoes through contract farming arrangements with more than 7,500 farmers across approximately 30,000 acres. Its support includes seeds, credit, and agronomy assistance.
With its planned IPO, additional manufacturing capacity, and a stronger domestic focus, HyFun is preparing for its next phase of growth while continuing to serve international markets.
