HyFun Foods to invest Rs 1,100 crore to open 3 state-of-the-art manufacturing plants in Gujarat, ET Retail

HyFun Foods, the exporter of frozen fruits and vegetables is planning to invest Rs 1,100 crore to set up three new state-of-the-art manufacturing plants in Gujarat to meet its growing demand in the domestic and export markets, HyFun Foods’ managing director & CEO, Haresh Karamchandani told ETRetail.The investment is spread between the current and the next financial year.

“We have already invested around Rs 250 crore during the current financial year and the rest of the investment will be concluded in the next financial year,” he said.

The company is building manufacturing units for frozen french fries, potato specialties like hash browns, and potato flakes.

As of today, the total manufacturing capacity of the company stands at 150,000 tons of finished products and around 320,000 tons of processed potatoes. And after the commissioning of the manufacturing units, it is going to increase to 300,000 tons of finished products and it will result in the processing of 500,000 tons of raw potatoes.

“At present, the manufacturing capacity of the company spreads across 20 acres of area and it is going to increase to 50 acres with the addition of 3 new units,” he stated.

Currently, the company procures potatoes from North Gujarat. However, it has also been working in Madhya Pradesh and developing some pockets in Uttar Pradesh to increase its volumes.

“We are also developing Madhya Pradesh as an additional source. So after Gujarat, Madhya Pradesh is the second-best state for processing varieties. We will be entering MP in the next three years and UP over the next five years,” he stated.

HyFun opened its first unit at Mehsana, Gujarat in 2015 and has since then set up four more units and crossed Rs 1,000 crore in revenue last year.

The company, which clocked Rs 1,012 crore last fiscal, is eyeing to clock Rs 1,300 crore this fiscal and by FY25, it is aiming for Rs 2,000 crore.

“Moving forward, we aim to quadruple our production and reach over Rs. 5,000 crore revenue in the next 5 years,” he asserted.

Explaining the India strategy, Karamchandani said that the company is aiming to bring quality and convenience into every kitchen through a two-pronged approach of deeper pan-India distribution through its business partners and a wider assortment of both Indian and global cuisines.

The company aims to become a convenient snacking option for customers, including QSRs, restaurants, hotels, and cafes.

It works with over 6,000 farmers and has a procurement pipeline of over 300,000 tonnes of potatoes this year.

At present, 70 per cent of the revenue of the company comes from exports, and the remaining 30 per cent is contributed by the domestic market.

“With the addition of the new facilities, we foresee this 70:30 split changing to 50:50 over the next 5 years,” he stated.

Currently, HyFun exports to around 40 countries and plans to expand its international presence further while remaining the partner of choice for QSRs and its food service customers.