HyFun Foods, a leading potato processor, targets a significant growth trajectory with plans to elevate its turnover to Rs 5,000 crore by the fiscal year 2029. The company, established in December 2015, has rapidly emerged as an industry leader, processing 0.2 million tonnes of potatoes in 2021.
- Current Status and Growth Strategy:
- In FY24, HyFun Foods achieved a turnover of Rs 1,200 crore, with 70% of the revenue generated through exports.
- The company is on a strategic path towards transitioning from a prominent potato processor to a prominent player in the frozen-food sector.
- An extensive array of new products including pizzas, kebabs, momos, and processed vegetables will be introduced in the market, bolstering sales and aiming for the Rs 5,000 crore turnover target within the next five years.
- Expansion Plans and Market Focus:
- By FY29, HyFun anticipates a balanced revenue distribution, with 50% from the domestic market and the remaining 50% from exports.
- The company envisions capitalizing on the capital market in the coming 2-3 years to facilitate expansion beyond Gujarat into key potato cultivation regions like Uttar Pradesh and Madhya Pradesh.
- The expansion strategy encompasses significant enhancements in processing and procurement infrastructure to support the increased production capacity.
- Operational Details and Market Reach:
- HyFun Foods presently processes 0.35 million tonnes of potatoes annually and primarily caters to the quick-service restaurant chains such as Burger King, KFC, Pizza Hut, and Domino’s through exports.
- With contract farming agreements in place with around 6,300 farmers, predominantly in Gujarat and Madhya Pradesh, the company aims to extend its farmer network to 10,000 by the end of the current fiscal year and further expand to 30,000 farmers across multiple states by FY29.
- The business model encompasses a ‘seed-to-shelf’ approach, ensuring a well-structured supply chain from seed multiplication to procurement, offering stability to farmers and shielding them from market volatilities.
- Future Endeavors and Product Diversification:
- In line with its growth strategy, HyFun Foods plans to venture into onion cultivation, focusing on Maharashtra, Madhya Pradesh, and Gujarat, for the production of dehydrated onions and frozen products.
HyFun Foods‘ ambitious expansion plans, diversified product range, and commitment to sustainable farming practices position the company for substantial growth and market leadership in the coming years.
