HyFun Foods plans to pivot to domestic growth as IPO plans take shape

HyFun Foods is shifting its attention to the Indian market. The frozen potato products maker, which expects revenues of around ₹1,500 crore in FY26 against ₹1,215 crore last year, believes the next big opportunity lies at home.

“Our target going forward is that the maximum growth should now come from the Indian market,” says Haresh Karamchandani, managing director and group CEO of HyFun Foods. While exports still contribute nearly 70% of its revenues, the company has set itself a target of ₹5,000 crore by FY29, with half of that expected from domestic sales.

The next leg of growth, Karamchandani says, will be driven by India’s still nascent frozen foods market. “Once we reached the ₹1,000 crore milestone, we set ourselves a target of ₹5,000 crore revenue by FY29. Our internal goal is that half of this should come from the domestic market,” he shares.

The company’s early years were focused on the B2B side, supplying to quick service restaurants like Burger King and KFC, and hotels and restaurants. It only entered the consumer retail segment in the past two years with its own brand. That transition, however, has not been without hurdles.

“The biggest challenge is maintaining the freezer culture,” says Karamchandani. In smaller retail outlets, freezers are sometimes switched off to save electricity, impacting product quality. At the consumer end, limited freezer space at home and the perception that frozen food is unhealthy have also slowed adoption. “In fact, frozen foods contain no preservatives. It is the freezing technology that provides shelf life of up to 24 months,” he adds.

HyFun is expanding beyond potato-based products to offer a wider frozen range—paneer patties, parathas, samosas, gravies, mozzarella sticks, and onion rings—catering to Indian preferences for variety. “We believe Indian consumers need a lot of options. They're spoiled for choice. While frozen snacks dominate today, eventually frozen meals will also find a place,” Karamchandani says.

The company’s integrated “seed-to-shelf” model has helped secure quality and scale. Starting with 200 farmers in its first year, HyFun now works with 7,500 commercial growers, procuring about 400,000 tonnes of potatoes annually. Its revenue journey has increased from ₹50 crore in the first year to crossing ₹1,000 crore in seven years, and now pushing towards ₹1,500 crore.

The capital-intensive nature of the business means HyFun is preparing for an eventual listing. “We will eventually be tapping the capital markets, but that is at least two years away,” Karamchandani confirms. The IPO will align with its next phase of expansion, once new capacities are operational. “The market with an IPO needs additional bandwidth, and we are preparing ourselves for that,” he says.

With quick commerce platforms easing access and modern retail chains expanding frozen sections even in Tier-II cities, HyFun sees domestic consumption as its biggest lever going forward.