HyFun Foods, a key supplier to global restaurant chains such as McDonald’s and KFC, is preparing for a major expansion as India’s appetite for frozen and ready-to-cook food continues to grow.
The Gujarat-based company is targeting an initial public offering of up to ₹2,000 crore by late 2028. The company is expected to begin preparations for the IPO around the middle of 2027, as it looks to raise fresh capital for expansion and strengthen its position in India’s growing food market.
HyFun sees a significant opportunity in the changing way Indians buy and consume food. Frozen French fries, hash browns, snacks and other ready-to-cook products are increasingly moving beyond restaurant kitchens and into supermarkets, quick-commerce platforms and household freezers.
Convenience has become an important driver of this shift. The rapid expansion of quick-commerce services has made it easier for consumers to order frozen products within minutes, while the growth of quick-service restaurants, cafes, hotels and organised retail is creating stronger demand from institutional buyers.
HyFun Chief Executive Officer Haresh Karamchandani expects the company to benefit from this structural change. The company is looking at a future where frozen products become a more regular part of Indian food consumption rather than remaining concentrated in restaurants.
HyFun already has a strong international business. The company exports its products to more than 40 countries, with overseas markets currently contributing about three-fourths of its revenue. That mix, however, is expected to change significantly as domestic sales increase.
The company expects exports to contribute around half of its revenue within the next five years. A larger domestic business would give HyFun greater diversification while allowing it to benefit directly from India’s expanding food-services and retail markets.
HyFun is also targeting rapid revenue growth. The company expects its sales to more than double to nearly ₹3,500 crore by FY28, supported by new manufacturing capacity and increasing demand from restaurant chains, hotels, retailers and other food-service businesses.
Its customer base is expanding beyond multinational restaurant brands. HyFun supplies Indian businesses including Blue Tokai, PVR Cinemas and Wow Chicken, giving the company access to a wider range of domestic food-service customers.
Global restaurant chains currently contribute around 40% of HyFun’s domestic revenue. That share is expected to fall to about 30% over the next two years as the company increases sales to Indian restaurant brands, hotels and other customers.
The strategy reflects a broader change in India’s food-services industry. The sector is expected to expand substantially over the coming years as urbanisation, rising incomes, organised dining and food delivery reshape consumer habits.
That growth is creating opportunities not only for restaurant operators but also for suppliers working behind the scenes. Large restaurant chains need consistent product quality, reliable supply and standardised ingredients across hundreds of outlets. Frozen food can help businesses manage inventory, reduce wastage and maintain consistency.
HyFun has been investing in capacity to capture this opportunity. Earlier this year, the company raised ₹1,500 crore through a structured credit transaction with global investment firm Davidson Kempner. The funding is being used to support expansion and strengthen the company’s financial position ahead of its planned growth.
Manufacturing capacity is another major part of the company’s strategy. HyFun has been expanding its potato-processing operations in Gujarat, including facilities for frozen French fries and other potato-based products.
French fries remain a core part of its business, but the company is gradually broadening its portfolio. The aim is to move beyond traditional quick-service restaurant products and reach more consumers through retail, food service and newer distribution channels.
India’s frozen food market still has plenty of room to grow. Freshly prepared food remains deeply embedded in Indian eating habits, meaning frozen products have had to overcome concerns around taste, freshness and quality.
Improved cold-chain infrastructure is gradually changing that picture. Better storage, transportation and distribution networks are making frozen products more accessible while helping companies reduce wastage and maintain product quality.
Quick commerce has added another important layer to the market. Consumers who once had to visit supermarkets to buy frozen products can now order them alongside everyday groceries, making convenience a stronger part of the purchasing decision.
HyFun’s proposed IPO comes against this changing backdrop. The company plans to use the public-market opportunity to support capacity expansion and capture a larger share of the domestic market while continuing to serve international customers.
The road ahead will not be without challenges. Frozen food manufacturing requires significant investment, while cold-chain logistics remain critical to maintaining quality. Competition is also likely to intensify as established food companies and emerging brands target India’s growing convenience-food market.
HyFun believes the long-term opportunity outweighs these challenges. Its strategy is increasingly focused on India, even as exports remain an important part of the business.
A ₹2,000-crore IPO by 2028 would give the company significant capital to pursue that strategy. More importantly, it would position HyFun as a potential beneficiary of a broader transformation in Indian food consumption.
The company’s growth story is therefore closely linked to more than French fries or restaurant supply. It reflects the rise of quick commerce, organised food services, modern retail and convenience-led consumption in India.
As consumers become more comfortable keeping frozen and ready-to-cook products at home, companies such as HyFun are betting that India’s frozen food market is only beginning to find its appetite.