HyFun Foods Aims for $208 Million IPO to Fuel Expansion

HyFun Foods, a major supplier to McDonald's and KFC, is planning a significant expansion through an initial public offering (IPO). The company aims to raise up to 20 billion rupees ($207.7 million) by late 2028, according to CEO Haresh Karamchandani. Preparations for the IPO are set to begin in mid-2027, with the funds primarily used to fuel capacity expansion and focus on the growing domestic market.

The frozen foods industry in India is experiencing a shift as consumers increasingly opt for convenience. Items like French fries, pizzas, and dumplings are becoming more popular due to the rise of quick-commerce platforms. Karamchandani noted that the industry is at a pivotal point, transitioning from fresh to frozen foods. Currently, exports make up about three-fourths of HyFun's revenue, but this is expected to drop to around half within five years as local demand rises.

India's food services industry is projected to grow from $90 billion to $150 billion by the end of the decade, driven by the expansion of restaurant chains. HyFun anticipates its revenue to more than double to nearly 35 billion rupees by the fiscal year 2028. The company's domestic revenue, currently 40% from global restaurant chains, is expected to shift to around 30% as local sales expand. HyFun's clientele includes notable names like Blue Tokai, PVR Cinemas, and Wow Chicken.