HyFun Foods IPO: McDonald’s, KFC supplier plans Rs 2,000 crore issue by 2028

McDonald’s and KFC supplier HyFun Foods plans to raise up to Rs 2,000 crore in an initial public offering by late 2028, Reuters reported, citing the frozen foods maker’s chief executive officer Haresh Karamchandani. The issue, composed largely of new shares, is expected to fund expansion as the company increases capacity and sharpens its focus on the domestic market.

Karamchandani told Reuters that the Indian firm expects to begin preparations for the IPO in mid-2027, as it bets on rising demand from restaurants, retailers and quick-delivery platforms. HyFun expects its revenue to more than double to nearly Rs 35 billion by fiscal year 2028, driven by capacity expansion and growth from regional restaurant chains, hotels and retail demand.

Frozen foods such as French fries, pizzas and dumplings are gaining ground in India as consumers look for convenience amid a quick-commerce boom. Indian households have traditionally preferred freshly cooked meals over ready-to-eat options. “The industry is at the cusp of a shift from fresh to frozen,” Karamchandani said.

HyFun currently gets about three-fourths of its revenue from exports to more than 40 countries, but Karamchandani said that share is expected to fall to about half within five years as local demand rises. India’s food services industry is projected to grow to $150 billion by the end of the decade from about $90 billion, helped by the expansion of restaurant chains, according to Redseer Strategy Consultants.

Global restaurant chains now account for about 40 per cent of HyFun’s domestic revenue, but that share is expected to decline to around 30 per cent as the company expands local sales and the shift becomes more visible over the next two years. HyFun’s customers include Blue Tokai, PVR Cinemas and Wow Chicken.

The company is positioning its planned IPO around growth in India’s frozen foods market, with preparations set to begin in 2027 and the listing targeted by late 2028, as it looks to expand capacity and increase its presence in the domestic market, Reuters reported.