Whalesbook
Green Export Corridor Launched by HyFun Foods and Adani Logistics
HyFun Foods, in collaboration with Adani Logistics and Evergreen Marine Corporation, has established a new, environmentally friendly export corridor. This initiative aims to streamline the transport of HyFun Foods' frozen potato products while supporting sustainability in India's growing cold chain logistics sector.
Emission Reduction and Efficiency
The core of this partnership is a dedicated rail freight service. Each train trip is expected to replace 40 truck journeys, significantly cutting fuel use, easing road congestion, and lowering carbon emissions. This aligns with India's push to decarbonize logistics, as rail is more energy-efficient than road transport. Adani Logistics leverages the infrastructure of Adani Ports and Special Economic Zone (APSEZ), including Mundra Port, India's largest commercial port handling over 155 million tonnes of cargo annually. This setup will boost HyFun Foods' exports, currently reaching over 40 countries and targeting expansion to more than 100.
Market Growth and Competition
The Indian cold chain logistics market is growing rapidly, projected to reach USD 42.56 billion by FY2032. Growth drivers include demand for perishables, e-commerce, and government infrastructure support. HyFun Foods is investing USD 108 million to double its frozen potato processing capacity by late 2026, positioning itself against competitors like Iscon Balaji Foods and Lamb Weston. Evergreen Marine Corporation's participation is also strategic, as the company pursues zero emissions by 2050, enhancing the corridor's green credentials.
Sector Challenges
Despite growth, the sector faces challenges like infrastructure gaps in rural areas and market fragmentation, with over 90% of the market divided among smaller players. India has a cold storage capacity shortfall of over 10 million metric tons. While Mundra Port offers vast capacity, logistical bottlenecks can still occur. HyFun Foods' reliance on exports (70%) also exposes it to global trade risks. Internal dynamics are also a consideration, with the CEO's approval rating at 51%.
Future Growth Plans
HyFun Foods targets ₹5,000 crore in revenue within three years and is considering a public listing between 2028-29. The new export corridor is key to this strategy, supporting more efficient and sustainable operations to reach over 100 countries. This collaboration enhances HyFun Foods' competitive edge with a reliable, environmentally sound supply chain for the global frozen potato market.