HyFun Foods, one of the largest processors of potatoes into frozen French Fries and potato specialties, operates through its unique Seed-to-Shelf business model. This model begins with contract farming for seed multiplication and the procurement of commercial crops through a comprehensive agriculture program. Since its inception in 2015, it has crossed Rs 1000 Cr in revenue in just seven years. Its products are trusted by leading global brands and are a preferred choice for HoReCa, QSRs, and consumers in India and internationally. HyFun Foods is a proud contributor to the ‘Make in India’ initiative and exports to more than 40 countries. HyFun Foods has witnessed an impressive revenue growth of 20% in the current financial year and is optimistic about surpassing the milestone of Rs 1500 Crore in the fiscal year 2024-25. The brand’s revamped brand identity serves as a catalyst for its ambitious expansion plans in the domestic market. HyFun enjoys extensive availability, with products stocked in over 1500 Reliance stores nationwide, ensuring widespread accessibility to consumers across India. Furthermore, HyFun has established a strong presence in Gujarat through partnerships with all DMart outlets in the region, cementing its foothold in a key market.
“In terms of consumers, we have three segments of sales: the food segment, where we cater to HoReCa (Hotels, Restaurants, Caterers); the QSR segment (Quick Service Restaurants) like McDonalds, KFC, etc.); and the consumer segment, which we entered in 2022. For the first two segments, we have different packaging, which are comparatively larger, and for the consumer segment, we have smaller product packages. If we look at the frozen potato category, 20% of it is contributed by the consumer segment and 80% by the HoReCa and QSR segments” said Haresh Karamchandani, MD, and Group CEO of HyFun Foods in conversation with Medianews4u.com.
When it comes to the consumer brand, in general trade, the brand is currently present only in six cities: Ahmedabad, Hyderabad, Bangalore, Mumbai, Delhi, and Pune.
“We are planning expansion into newer cities. In this financial year, we will be adding another 6-7 cities like Mysore, Chennai, Jaipur, and by the 2025 calendar year, HyFun Foods will have a presence in 27 cities. Bangalore contributes majorly to the overall revenue of the brand’s consumer segment,” he added.
The brand’s journey started with frozen potato products. “We have a strong supply and sales chain network for frozen products in the country. We are leveraging this to introduce more and more products to the portfolio. Our objective is to introduce a range of food products for the Indian consumers. We have started with Pizza variants recently and are planning to introduce a range of products like momos. We have also introduced desserts to the portfolio. We are targeting all age groups for all their meal options,” he underlined.
HyFun Foods has witnessed an impressive revenue growth of 20% in the current financial year.
Elaborating on the revenue growth strategy, Karamchandani said, “Overall, we have been growing over the past seven years since the launch in 2015. We have witnessed tremendous growth year-on-year. We are also in a phase where the industry has a lot of growth potential both in terms of export and the domestic market as well. The current growth is also attributed to the manufacturing capacity added recently and the increase in volume of sales. We will be adding more products to the portfolio which will be targeted towards the consumer segment.”
Speaking about the factors that set the brand apart from other players in the category, Karamchandani said, “We follow the seed to shelf model. We have a very strong backward and forward integration. When it comes to backward integration, we have built a strong network of sourcing raw potatoes through farmers. We supply good seeds to these farmers. We have five facets to this program: the seed multiplication program – we have in-house capability of multiplying seeds; the procuring model which comes 100% through contract farming, where we are able to ensure the quality and quantity of raw products we procure. The third facet is the manufacturing plants which are all equipped with the latest imported equipment with the best automation possible for catering to world-class hygiene products. Our facilities are very much in line with global standards. In the 4th facet, we adapt best handling practices & best in class storage technology to ensure the raw potatoes are at their best until sent to the processing plants. The final one is the extensive network of the cold chain supply. We ensure the last mile delivery either through the distribution cold room or to the retailer shelf.”
The QSR chains contribute around 40% of the business.
“French fries happen to be a very important menu item for them and they have to ensure availability throughout the year and consistency in quality, which we are able to ensure by our strong backward integration of sourcing of raw materials,” he said.
“Out of the overall consumer presence the brand has, the sales through digital marketplaces are around 15-20%. French Fries by volume is the hero product, we believe that there is huge potential for Pizza in the consumer segment. We are, in fact, the first brand to have a country-wide presence in the availability of frozen pizzas. It is manufactured on automated lines, it is basically untouched by hands, which is why we have an edge over any other regional brand,” Karamchandani concluded.
