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HyFun's expansion plan to achieve Rs 5,000 cr revenue by FY29
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Saturday, 27 July, 2024, 12 : 00 PM [IST]
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Our Bureau, Mumbai
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HyFun Foods has chalked out an expansion plan to transition from a potato processor with strong brand presence to a larger frozen-foods company. New products, including pizzas, kebabs, momos, and processed vegetables, will be launched over the next few months, and this would help achieve sales turnover of Rs 5,000 crore in the next five years.
By FY29, domestic market would account for 50% sales, and the rest, exports. The company will be able to tap the capital market in the next two to three years to fund its expansion beyond Gujarat to key potato growing regions of Uttar Pradesh and Madhya Pradesh, reflecting a major upgrade in processing and procurement infrastructure.
The company currently processes 0.35 million tonne (MT) of potato annually. The company, which started its commercial production in December 2015, became the industry leader in processing 0.2 MT of potatoes in 2021. Currently, 70 percent of sales comes from exports of potato products to 40 countries to quick service restaurants like Burger Kings, KFC, Pizza Hut and Domino’s.
The company aims to expand its network to 10,000 farmers, and by end of FY29, the farmers’ network would expand to 30,000 farmers across Gujarat, Madhya Pradesh, Uttar Pradesh, Punjab and Himachal Pradesh for production of potato seeds as well as sourcing raw material.
The company follows ‘seed-to-shelf' business model, starting with contract farming for seed multiplication of processing varieties of potatoes and procurement of crops through a buyback agreement at the predetermined prices. The agriculture supply chain ensures raw potato is stored in cold storage and supplied to its processing plants periodically.
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