McDonald's supplier HyFun plans $208 million India IPO

BENGALURU: McDonald’s and KFC supplier HyFun Foods plans to raise up to 20 billion rupees ($207.7 million) in an IPO by ​late 2028, the frozen-foods maker’s CEO said, betting on surging ‌demand from restaurants, retailers and quick-delivery platforms.

The Indian firm expects to start preparations for the initial public offering in mid-2027, Haresh Karamchandani said in an interview. The ​IPO, composed largely of new shares, would fund expansion as HyFun ​ramps up capacity and sharpens its focus on the domestic ⁠market.

Frozen foods such as French fries, pizzas and dumplings are gaining ​ground in India as consumers seek convenience amid a quick-commerce boom. Households ​in the world’s most populous country have traditionally preferred freshly cooked meals instead of ready-to-eat ones.

“The industry is at the cusp of a shift from fresh to frozen,” ​Karamchandani said.

For HyFun, exports to more than 40 countries account for about ​three-fourths of revenue, but Karamchandani expects that share to fall to about half within ‌five ⁠years as local demand rises.

India’s food services industry is expected to grow to $150 billion by the end of the decade from about $90 billion, aided by the expansion of restaurant chains, according to Redseer Strategy Consultants.

HyFun expects ​its revenue to ​more than double ⁠to nearly 35 billion rupees by fiscal year 2028, driven by capacity expansion and growth from regional restaurant ​chains and hotels as well as retail demand.

Global restaurant ​chains currently ⁠contribute about 40% of HyFun’s domestic revenue, but that share is expected to fall to around 30% with the shift becoming more evident over the ⁠next ​two years as the firm expands local ​sales.

HyFun counts Indian coffee chain Blue Tokai, PVR Cinemas and Wow Chicken among its customers.