HyFun Foods, one of India’s fastest-growing frozen potato processors, plans to invest approximately USD 108 million (€94 million) in a new processing facility in North Gujarat, as the company seeks to expand export-driven growth and significantly increase production capacity.

According to an interview published by The Hindu BusinessLine, the investment will support the construction of a new frozen potato processing plant that is expected to become operational toward the end of 2026, enabling production to begin with the January 2027 potato harvest.

The expansion will significantly increase HyFun’s processing footprint. Frozen French fries capacity is expected to rise from around 110,000 tonnes to approximately 245,000 tonnes, while the company’s range of potato specialty products is projected to expand from 15,000 tonnes to about 40,000 tonnes annually.

The new facility will complement HyFun’s existing operations in Mehsana, Gujarat, where production will continue alongside the planned expansion.

Export-Driven Growth

HyFun’s expansion strategy reflects the strong role of exports in the company’s business model. Roughly 70% of its current sales are generated from export markets, supplying customers across Asia, the Middle East and other international destinations.

The company has also secured notable retail supply arrangements, including shipments of hash browns to Walmart in the United States, according to the BusinessLine report.

HyFun has experienced rapid growth in recent years, driven by increasing global demand for frozen potato products and the expansion of India’s processing potato sector. The company is forecasting revenue growth of around 20%, with annual sales expected to reach roughly USD 180 million.

Preparing For Further Expansion

The Gujarat investment forms part of a broader expansion strategy that could include additional production capacity in other regions of India.

The company is also reportedly evaluating plans for a public listing between 2028 and 2029, which could provide further capital to support additional growth initiatives.

For the potato processing industry, the investment highlights India’s rising role in the global frozen potato market. Increasing processing capacity, export-oriented production, and investments in new facilities are positioning the country as an emerging supplier of frozen potato products to international markets.