LT Foods Expands Mfg and Eyes Global Acquisitions to Drive Growth

LT Foods, the company behind popular brands like Daawat and Royal, is set to maintain its robust growth trajectory this fiscal year, fueled by rising global demand for basmati rice. With plans to expand its manufacturing capacity and explore new acquisition opportunities, LT Foods is poised to continue its double-digit growth. Ashwani Arora, Managing Director & CEO, revealed that the company has achieved a compound annual growth rate (CAGR) of 15% over the past two years and expects to sustain a 12-15% growth rate this year.

Arora highlighted the increasing global appetite for basmati rice as a key driver of growth, as consumers seek premium grains and convenient culinary experiences. To capitalize on this demand, LT Foods is not only focused on organic growth but is also actively exploring inorganic growth opportunities both in India and internationally. A recent example is the company’s acquisition of a 17.5% stake in its organic food subsidiary, Nature Bio-Foods Ltd, making it a wholly-owned subsidiary.

In addition to strategic acquisitions, LT Foods is boosting its manufacturing capabilities. The company recently began operations at a new rice production facility in the UK and is doubling its production capacity in the US to better serve these markets. With an average annual investment of ₹150-200 crore, LT Foods is enhancing its manufacturing infrastructure both in India and abroad to sustain its growth.

The company is also seeing rapid expansion in its ready-to-cook and ready-to-eat segments, which are expected to contribute 8-10% of overall revenue in the next five years. This product portfolio includes innovative offerings like Daawat Sehat, Quick Cooking Brown, Black, and Red Rice, and Royal Ready-to-Heat.

To further strengthen its market position, LT Foods is expanding its distribution network in India, aiming to increase its reach from 200,000 to 300,000 general trade outlets in the next 2-3 years. With strong growth in e-commerce and quick commerce channels, LT Foods is well-positioned to meet the evolving needs of consumers both domestically and globally.

News by Rahul Yelligetti