McDonald’s, KFC Supplier HyFun Foods Plans ₹2,000 Crore IPO as India’s Frozen-Food Market Expands

HyFun Foods, which supplies frozen foods to McDonald’s and KFC, is preparing to tap India’s public markets as it looks to expand capacity and build a much bigger business at home. 

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The company plans to raise as much as ₹2,000 crore ($207.7 million) through an initial public offering by late 2028, Chief Executive Haresh Karamchandani told Reuters. 

Preparations for the IPO are expected to begin in mid-2027. Most of the offering is planned as a fresh issue of shares, giving HyFun additional capital to fund its expansion. 

Behind those plans is a shift the company is seeing in how Indians eat and order food. Frozen products such as French fries, pizzas and dumplings are finding more takers as restaurant chains expand and quick-commerce platforms make convenience foods easier to access. 

India to Become a Bigger Part of HyFun’s Business 

HyFun is currently an export-heavy company. 

It sells to more than 40 countries, with overseas markets accounting for about three-fourths of its revenue. But Karamchandani expects that balance to change considerably over the next five years. 

Exports could fall to around half of overall revenue as the company grows its domestic business. 

The change would not necessarily reflect weaker overseas sales. Instead, HyFun expects India to grow faster as demand comes from restaurants, hotels, retailers and quick-delivery platforms. 

The company already supplies Indian businesses including Blue Tokai, PVR Cinemas and Wow Chicken, alongside international restaurant chains. 

Revenue Expected to More Than Double by FY28 

HyFun is also setting itself up for a sizeable increase in scale. 

The company expects revenue to more than double to nearly ₹3,500 crore by FY28, supported by new capacity and stronger demand from regional restaurant chains, hotels and retail customers. 

International restaurant chains currently contribute around 40% of HyFun’s domestic revenue. 

That share is expected to fall to about 30% as the company widens its customer base in India. Karamchandani expects the shift to become more visible over the next two years. 

Frozen Foods Find More Space in Indian Kitchens 

The opportunity HyFun is pursuing reflects a broader change in India’s food market. 

Freshly cooked meals have traditionally dominated Indian households, but convenience is beginning to reshape consumption habits. 

Karamchandani believes the frozen-food industry is now reaching a turning point as more consumers become comfortable with products that can be stored and prepared quickly. 

India’s food-services industry is expected to expand to $150 billion by the end of the decade from around $90 billion currently, according to Redseer Strategy Consultants, helped by the continued growth of restaurant chains. 

For HyFun, the planned IPO is tied closely to that domestic opportunity. A business that today earns most of its money overseas is preparing for a future in which India accounts for a much larger share of sales and the company is looking to the public markets to help finance that expansion.