McDonald's, KFC supplier HyFun plans ₹2,000cr IPO
What's the story
HyFun Foods, a supplier for global fast-food giants like McDonald's and KFC, has announced its plans to raise up to ₹2,000 crore through an initial public offering (IPO) by late 2028. The company's CEO Haresh Karamchandani revealed the strategy in an interview with Reuters. He said that the preparations for this IPO will begin around mid-2027 as demand from restaurants and quick-delivery platforms continues to grow.
Growth strategy
IPO to fund expansion plans
The upcoming IPO, mostly consisting of fresh shares, will be used to fund HyFun's expansion plans. The company intends to increase its production capacity and focus more on the domestic market.
Karamchandani said, "The industry is at the cusp of a shift from fresh to frozen."
This comes as frozen foods like French fries, pizzas, and dumplings are becoming popular in India amid a quick-commerce boom.
Financial outlook
Shifting focus from exports to local market
Currently, exports to over 40 countries account for about three-fourths of HyFun's revenue. However, Karamchandani expects this share to fall to about half in five years as local demand rises.
The Indian food services industry is projected to grow from $90 billion today to $150 billion by the end of the decade, driven by restaurant chain expansion, as per Redseer.
Revenue growth
Anticipated growth in revenue
HyFun anticipates its revenue will more than double to nearly ₹3,500 crore by the fiscal year 2028.
This growth is expected to come from capacity expansion and demand from regional restaurant chains, hotels, and retail.
Currently, global restaurant chains contribute about 40% of HyFun's domestic revenue but this number is likely to drop to around 30% as the company focuses on local sales over the next two years.