HyFun Foods, a major player in frozen potato products sector, is betting big on its seed-to-shelf business model to increase its presence in the frozen food industry.

According to Haresh Karamchandani, MD and Group CEO of HyFun Foods, seed-to-shelf approach ensures HyFun Foods delivers consistently high-quality frozen potato products from seed to shelf setting it apart in the industry.

Explaining this, he said it begins with meticulous contract farming with potato growers and extensive physical and digital (phygital) connect crop advisory programmes. These processes allow the company to control every step from seed multiplication, raw material supplies, to final product delivery.

Plans to expand to 10,000

In an online interaction with businessline, Karamchandani said HyFun Foods has contract farming arrangements with 6,300 farmers mainly in Gujarat and Madhya Pradesh. The aim is to expand this network to 10,000 farmers by the end of 2024-25, and to 30,000 farmers by 2030.

“This ambitious target is a part of our HyFarm initiative, which focuses on expanding our procurement to include table and chipping varieties of potatoes, as well as other fresh fruits and vegetables.

The initiative aims to revolutionise fresh produce procurement and build a robust value chain with a strong backward-integrated business model,” he said, adding the contract farming model of HyFun Foods is strategically designed to foster mutual benefits for both the company and the farming community.

To a query on the quantity of potato produced under the contract farming model, he said the company procured 300,000 tonnes of processing-grade potatoes from farmers in the last fiscal.

“We aim to significantly increase this procurement in the coming years as part of our HyFarm initiative, targeting 1 million tonnes of various fresh produce, including potatoes, by 2028,” he said.

Processing facility

HyFun Foods, which has frozen potato production facility in Gujarat’s Mehsana, will establish three additional manufacturing plants there.

“This expansion will significantly boost our production capacity, enabling us to better serve our growing customer base and maintain our position as a leading player in the frozen foods industry,” Karamchandani said, adding, HyFun Foods operates several processing plants equipped with specialized units for a variety of products. The facilities include dedicated lines for French fries, potato speciality products, potato flakes, and baked snacks.

HyFun Foods has around 50 products now from traditional Indian tastes to international flavours.

Revenue from exports

He said the company achieved revenue of ₹1200 crore in 2023-24, with a profit margin of approximately 20 per cent. Around 70 per cent of this revenue was generated from exports. This share was the result of a deliberate strategy to tap into the global market’s growing demand for premium frozen potato products, he said.

Stating that the company is placing equal emphasis on both domestic and retail markets, he said: “Within just one year of entering the retail segment, we have successfully established our presence across all major metropolitan areas in the country. Moving forward, our goal is to expand our domestic market share to contribute 50 per cent of our total revenues.”

For the current fiscal, the company is aiming to surpass a revenue of ₹1,500 crore. To achieve the revenue target, the company is planning to increase its retail presence and sales in the domestic markets along with growing its customer base of QSR (quick service restaurants) and HoReCa (hotels, restaurants and catering) clients in the domestic and international markets.

He said the company is also expanding its production capacity, enhancing its supply chain, and launching new products specifically tailored to suit the taste buds of the Indian palate such as ‘aloo vada’, ‘hara bhara kebabs’, and ‘bhaji patty’.

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