HyFun Foods, which manufactures frozen potato products, on Wednesday said it will invest around Rs 850 crore to set up three plants in Gujarat to expand its business and achieve target of Rs 5,000 crore annual revenue by 2028.
The company will also invest another Rs 150 crore to establish a water treatment plant in Gujarat.
HyFun Foods has five potato processing plants in Mehsana district of Gujarat with an annual capacity of 2.5 lakh tonne.
It sells more than 20 ready-to-cook frozen snacks such as french fries, aloo tikki, burger patties and nuggets to HoReCa (hotel, restaurants and canteens) segment, Quick Service Restaurants (QSR) and also in retail markets. It supplies to Burger King and KFC.
'We are setting up three new plants in Mehsana for potato flakes, french fries and potato speciality products,' HyFun Foods MD and CEO Haresh Karamchandani told reporters here.
He said the construction of potato flakes plant has started and will be operational this year while the other two will come up by 2025-end.
Asked about investments on these three new plants, Karamchandani said it would be around Rs 850 crore.
That apart, he said the company plans to set up a water treatment plant, to treat waste water from its factories, with an investment of Rs 150 crore.
The investments of Rs 1,000 crore will be funded through internal accruals and bank loans.
Asked about turnover, Karamchandani said it would be around Rs 1,300 crore this fiscal as against Rs 1,000 crore in the previous year. In volume also, it expects to achieve 30-35 per cent growth.
Out of the total turnover, the export market contributes 70 per cent.
'We are targeting a revenue of Rs 2,000 crore in the next fiscal and Rs 5,000 crore by 2028,' he said, adding that exports and domestic revenue would become equal by then.
Karamchandani said the company is also expanding presence in retail, both physical and online. Its products are available in stores of Reliance Fresh.
He said the company is also looking to expand portfolio of frozen food items beyond potatoes.
It might go for third party manufacturing to introduce such products.
HyFun Foods buys potatoes from Gujarat, Uttar Pradesh and Madhya Pradesh. PTI MJH ANU ANU
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