This McDonald's, KFC supplier is planning $208M IPO in India
What's the story
HyFun Foods, a supplier for global fast-food giants McDonald's and KFC, is planning an initial public offering (IPO) to raise up to $207.7 million. The company's CEO Haresh Karamchandani revealed the plan in an interview with Reuters. The IPO in India will mostly consist of new shares and is expected to take place by late 2028.
Future plans
IPO preparations to begin in mid-2027
HyFun Foods plans to begin its IPO preparations in mid-2027.
The move comes as the company looks to capitalize on rising demand from restaurants, retailers, and quick-delivery platforms.
The funds raised through this IPO will be used for expansion as HyFun ramps up capacity and focuses more on the domestic market.
Market trend
Shift from fresh to frozen foods
Karamchandani said that the Indian food industry is on the cusp of a shift from fresh to frozen foods.
This change comes as households in India, which have long preferred freshly cooked meals over ready-to-eat ones, are now warming up to frozen products such as French fries, pizzas, and dumplings.
Revenue sources
Changing dynamics of local demand
Currently, exports to over 40 countries account for about 75% of HyFun's revenue.
However, Karamchandani expects this share to fall to about half in five years as local demand rises.
The company's domestic revenue is currently driven by global restaurant chains, which contribute about 40%. This share is expected to fall to around 30% over the next two years as HyFun expands local sales.
Growth forecast
Revenue growth expectations
HyFun expects its revenue to more than double to nearly ₹3,500 crore by FY 2028.
This growth will be driven by capacity expansion and demand from regional restaurant chains, hotels, and retail.
The company serves a diverse range of customers including Indian coffee chain Blue Tokai, PVR Cinemas, and Wow Chicken.