Gujarat-based HyFun Foods, a major supplier of frozen potato products to global chains like Walmart, KFC, and Burger King, is set to enter the onion processing segment. The company will introduce contract farming for onions in Maharashtra and Madhya Pradesh.

“The contract farming model, which we have established for potatoes, can be replicated for onions,” Managing Director and CEO of HyFun Group said Haresh Karamchandani said. A trial plantation of onions will begin in November 2025, with plans to process frozen onion products like cubes and slices for the HoReCA and QSR industries within the next three to four years. “We have been working in the Malwa region which covers Indore, Ujjain, Shahjahanpur, Dewas and Chhindwara. We will be putting up a ?500 crore potato processing plant in Madhya Pradesh between Indore and Ujjain,” he further informed. This will be the company’s first potato processing unit outside Gujarat.

HyFun started potato processing in 2015, initially engaging 200 farmers in North Gujarat to produce 10,000 tonnes of potatoes. By 2025, the company aims to produce 4 lakh tonnes, involving 7,500 farmers primarily from Banaskantha and Sabarkantha districts.

An investment of Rs 1,000 crore investment in Gujarat will expand production by an additional 20 tonne per hour for French Fries and four tonne per hour for hash browns.