HyFun Foods Pvt Ltd, a prominent player in the frozen food industry, has recently announced a strategic move by developing its agri-business division, HyFarm, into an independent business vertical. This development signals a deepening commitment to agricultural operations and a strategic focus on strengthening the company’s connections with farmers. This evolution of HyFarm from a crucial procurement division to a standalone entity exemplifies the pivotal role agriculture plays in HyFun Foods’ overall business model.
Established in 2015, HyFun Foods has rapidly grown and diversified its product portfolio, which initially centred around frozen potato products such as French fries, aloo tikki, patties, hash browns, nuggets, and flakes. In 2021, the company further expanded its offerings to include dehydrated potatoes. This commitment to potato-based products has positioned HyFun Foods as a significant exporter, currently serving global restaurant chains like Burger King, KFC, and Walmart across more than 40 countries. The company’s success in this sector has notably contributed to India’s emergence as a key source of French fries, a feat achieved through the adoption of suitable potato varieties and contemporary farming methods.
The foundation of HyFun Foods’ operations rests on a robust business model comprising three core pillars: agriculture, manufacturing, and sales, with agriculture serving as the fundamental cornerstone. To ensure a consistent and high-quality supply of raw materials, HyFun Foods has established a strong backward integration system through the strategic sourcing of commercial crops, primarily achieved via contract farming and a comprehensive seed multiplication programme. While HyFun has successfully established itself as a well-recognised consumer brand, HyFarm has organically developed into the crucial procurement arm, diligently managing the agricultural facets of the business.
The operational framework of HyFarm is built upon an innovative “Seed-to-shelf” model, encompassing five essential components. The process begins with seed multiplication, a comprehensive five-year cycle that includes two years dedicated to seed generation through advanced tissue culture laboratories. The second component involves commercial crop procurement, executed through systematic sourcing via well-structured contract farming arrangements. To maintain the quality of the harvested crops, the third element focuses on storage solutions, utilising state-of-the-art cold storage facilities designed for optimal preservation. The fourth critical component is the processing infrastructure, which features modern processing plants equipped with cutting-edge technology to ensure efficient and high-quality production. Finally, supply chain management forms the fifth element, maintaining an efficient distribution network that extends to the last mile through a network of distributors and retailers.
The transformation of HyFarm into an independent business vertical represents a significant milestone in HyFun Foods’ growth trajectory. This separation is expected to streamline operations, allowing for a more focused approach to agricultural development. By granting HyFarm an independent identity, HyFun Foods aims to enhance its farmer connect initiatives, fostering stronger relationships and potentially leading to more collaborative and mutually beneficial partnerships
