HyFun Cultivates Growth: Contract Farming Fuels Potato and Onion Boom

Gujarat-based HyFun Foods, a leading supplier of frozen potato products to global chains like Walmart, KFC, and Burger King, is expanding into the onion processing segment. The company plans to introduce contract farming for onions in Maharashtra and Madhya Pradesh, replicating its successful potato farming model.

Managing Director and CEO Haresh Karamchandani announced that a trial plantation for onions will begin in November 2025. Within the next three to four years, HyFun aims to process frozen onion products like cubes and slices for the HoReCa (Hotel, Restaurant, and Catering) and QSR (Quick Service Restaurant) industries.

The company has been actively working in the Malwa region, covering Indore, Ujjain, Shahjahanpur, Dewas, and Chhindwara. Additionally, HyFun plans to invest ₹500 crore in setting up its first potato processing plant outside Gujarat, located between Indore and Ujjain in Madhya Pradesh.

Since starting potato processing in 2015, HyFun has expanded from working with 200 farmers in North Gujarat—producing 10,000 tonnes of potatoes—to an ambitious goal of producing 4 lakh tonnes by 2025 with the involvement of 7,500 farmers, primarily in Banaskantha and Sabarkantha districts.

Further, the company is investing ₹1,000 crore in Gujarat to boost production capacity by 20 tonnes per hour for French fries and four tonnes per hour for hash browns.

News by Rahul Yelligetti.