"LT Foods Boosts Manufacturing, Explores Inorganic Growth Opportunities"

LT Foods, renowned for its brands like Daawat and Royal, is poised to sustain double-digit growth this fiscal year, driven by the increasing global demand for basmati rice. The company is expanding its manufacturing capacity and exploring inorganic growth opportunities to fuel this momentum.

Ashwani Arora, Managing Director & CEO of LT Foods, shared with BusinessLine, "We have achieved a CAGR of 15% over the past two years and anticipate maintaining this growth at around 12-15% this fiscal. The global consumption of basmati rice is rising as consumers seek premium grains, better culinary experiences, and convenience in cooking."

Addressing potential future acquisitions, Arora said, "We are actively exploring inorganic growth opportunities, both within India and in international markets. Simultaneously, we remain confident in our organic growth prospects, as all our categories show strong potential."

Recently, LT Foods informed the BSE that it acquired a 17.5% stake in Nature Bio-Foods Ltd, its organic food and premium ingredients subsidiary, from India Agri Business Fund II Ltd for ₹110 crore, making Nature Bio-Foods Ltd a wholly-owned subsidiary.

In July, the company began operations at its new rice production facility in the UK to better serve the market and attract new consumers. Additionally, it is doubling production capacity in the US. "To sustain our growth, we have been enhancing manufacturing capacity both in India and globally, with an average annual investment of ₹150-200 crore," Arora said.

LT Foods’ ready-to-cook and ready-to-eat segments are also expanding rapidly. "We expect these segments to contribute about 8-10% of overall revenue in the next five years," Arora added. This portfolio includes products like Daawat Sehat, Quick Cooking Brown, Black, and Red Rice, Royal Ready-to-Heat (in the US), Daawat Cuppa Rice, Biryani Kit, and Kari Kari (Japanese Rice Snacks).

The company is also strengthening its distribution network in India. "We plan to increase our direct distribution network from 200,000 to 300,000 general trade outlets within the next 2-3 years. We're agile with our route-to-market strategies and are witnessing strong growth in e-commerce and quick commerce segments," Arora said.

HBL