The frozen food market in India is experiencing significant growth, valued at Rs 14,618 crore in 2023 and projected to grow at a CAGR of about 15.72% between 2024 and 2029, according to Research and Markets. This expansion is primarily driven by evolving consumer preferences and increased urbanization, creating a fertile ground for innovative food processing companies.
Among those capitalizing on this trend is Gujarat-based HyFun Foods, a company revolutionizing the frozen potato-based food segment through advanced technology and sustainable farming practices.
From Potato Trading to Food Processing Innovation
Founded in 2015 by Haresh Karamchandani, HyFun Foods has established itself as a significant player in both business-to-business (B2B) and business-to-consumer (B2C) segments. The company specializes in frozen potato-based snacks, including French fries, burger patties, and cheese poppers.
Karamchandani’s journey into food processing wasn’t straightforward. Despite coming from a family of potato traders, his parents encouraged him to explore other professional opportunities. However, during his third year of college, he found himself drawn back to trading and experimented with various ventures, including a multiplex theatre chain, a Maruti dealership, and a textile business, though none proved successful.
His breakthrough came in 2010 when he noticed a significant gap in the market. “At that time, there was only one major potato processing company in India, and the equipment for this industry was largely imported from the US and Europe. This piqued my interest, and I decided to explore further,” Karamchandani explains.
Determined to understand the industry better, he traveled to the Netherlands and other European countries to study farms and cold storage techniques while engaging with processing equipment suppliers. In 2015, his cousin, Kamlesh Karamchandani, joined the venture to help with sales operations.
“Back then, no one imagined that India could establish a French fries processing industry. The infrastructure was limited, and there was scepticism about whether high-quality frozen products could be produced domestically,” he recalls, reflecting on his transition from trading to manufacturing frozen potato-based foods.
Building a Global Food Processing Enterprise
Today, HyFun Foods has grown into a substantial operation, supplying major quick service restaurant (QSR) brands including Burger King, KFC, Pizza Hut, and Domino’s, while also expanding its retail presence across India. The company has also established an international footprint, exporting products to more than 40 countries, including the US, Canada, Japan, New Zealand, Qatar, and Saudi Arabia.
For Karamchandani, who lacked prior experience in large-scale food production, establishing a processing plant represented a significant financial risk. “Setting up this plant wasn’t just about producing high-quality products; it was about finding the right market for them,” he notes.
The initial investment totaled Rs 65 crore, comprising “a loan of Rs 37 crore, a Rs 10 crore subsidy from the Ministry of Food Processing, and the rest through equity.”
Transforming Agriculture Through Technology and Partnership
Starting with just 200 farmers, HyFun Foods adopted a contract farming model that has since expanded to include 7,500 farmers across Gujarat and Madhya Pradesh. The company has ambitious growth plans, aiming to work with 10,000 farmers by FY26 and build a network of 30,000 farmers across Gujarat, Madhya Pradesh, Uttar Pradesh, Punjab, and Himachal Pradesh by FY29.
HyFun Foods follows a comprehensive ‘seed-to-shelf’ business model, beginning with contract farming for seed multiplication and securing crops through buyback agreements. According to Karamchandani, the company processes an impressive 350,000 million metric tonnes of potatoes annually, commanding a 13% market share in the processed food segment.
To maintain consistent potato quality, the company has invested heavily in advanced cold storage infrastructure and state-of-the-art handling techniques. They’ve also introduced digital tools to streamline interactions with their farming partners.
“Since we deal with thousands of farmers and the harvesting window is short, managing procurement and payments efficiently is critical. Last year, we introduced a tech-based solution, including a dedicated farmer app,” Karamchandani explains.
Leveraging AI and IoT for Agricultural Excellence
The company’s commitment to technological innovation is further demonstrated through the establishment of HyFun Paathshala, an initiative designed to enhance agricultural productivity through regenerative farming practices and modern technology. This program serves as a knowledge center, educating contract farmers on best practices for cultivating high-quality potato varieties.
With 30 model farms and 3,000 farmers across Sabarkantha and Banaskantha districts, HyFun Paathshala provides hands-on training through three seasonal sessions and virtual guidance via the Farmoji app. This innovative application connects farmers with global experts through AI-driven insights, revolutionizing traditional farming methods.
Additionally, the company has incorporated soil moisture sensors and IoT devices to help farmers optimize resource utilization, reducing cultivation costs while increasing yields. These technological interventions represent a significant step forward in agricultural efficiency and sustainability.
“This year, we introduced Weatherways, an AI-based weather alert system, and Soilala, a soil monitoring system. These tools help farmers optimize resource use and make informed decisions,” Karamchandani adds.
The company’s technological innovations extend to quality control as well. “Additionally, we’ve developed an AI-based harvest quality assessment tool to evaluate potato quality during procurement,” ensuring that only the best potatoes make it into HyFun’s frozen products.
Through this combination of agricultural expertise, technological innovation, and strategic partnerships, HyFun Foods has positioned itself at the forefront of India’s growing processed food industry, demonstrating how traditional farming can be transformed through modern technology to meet the demands of today’s consumers.
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