Key Takeaways
- HyFun Foods, a supplier to McDonald’s and KFC, plans to raise up to $207.7 million in an IPO.
- The company aims to start preparations for the IPO in mid-2027, with an expected listing by late 2028.
- HyFun Foods expects its revenue to more than double to nearly 35 billion rupees by fiscal year 2028.
HyFun Foods, a major supplier to global fast-food chains including McDonald’s and KFC, has announced plans to raise up to 20 billion rupees ($207.7 million) through an initial public offering (IPO) in India by late 2028.
Haresh Karamchandani, CEO of HyFun Foods, disclosed these details in an interview, highlighting the company’s strategic move to capitalize on the growing demand for frozen foods in the country.
The IPO, which will primarily consist of new shares, is expected to fund HyFun’s expansion plans, including capacity upgrades and a stronger focus on the domestic market.
According to Karamchandani, the industry is witnessing a significant shift from fresh to frozen foods, driven by the convenience offered by quick-commerce platforms.
Currently, exports account for approximately three-quarters of HyFun’s revenue, but Karamchandani anticipates this share to fall to about half within five years as local demand increases.
The Indian food services industry is projected to grow to $150 billion by the end of the decade, from around $90 billion, supported by the expansion of restaurant chains, as per Redseer Strategy Consultants.
HyFun Foods expects its revenue to more than double to nearly 35 billion rupees by fiscal year 2028, driven by capacity expansion and growth from regional restaurant chains and hotels, as well as retail demand.
Global restaurant chains currently contribute about 40% of HyFun’s domestic revenue, but this share is expected to fall to around 30% as the firm expands local sales over the next two years.
The company counts Indian coffee chain Blue Tokai, PVR Cinemas, and Wow Chicken among its customers, indicating its diverse client base across various sectors.
