LT Foods is on track to maintain strong double-digit growth throughout this fiscal year. This positive trajectory is largely fueled by the rising global demand for basmati rice. To sustain and accelerate this momentum, the company is actively expanding its manufacturing capabilities and exploring new avenues for growth through acquisitions.
Ashwani Arora, the Managing Director and CEO of LT Foods, discussed the company’s performance and future plans in an interview. He highlighted, “Over the past two years, we’ve achieved a compound annual growth rate (CAGR) of 15%, and we are optimistic about sustaining this growth rate at approximately 12-15% for the current fiscal year.
The worldwide consumption of basmati rice is on the rise as more consumers seek out premium-quality grains that offer superior culinary experiences and convenience in cooking.” Arora also touched on the company’s interest in potential acquisitions, stating, “We are actively considering inorganic growth opportunities, both domestically and internationally. At the same time, we remain confident in our organic growth potential, as all our product categories continue to show strong promise.”
In a strategic move to enhance its presence in the organic food segment, LT Foods recently informed the Bombay Stock Exchange (BSE) that it has acquired an additional 17.5% stake in Nature Bio-Foods Ltd, its subsidiary specializing in organic food and premium ingredients. This acquisition, valued at ₹110 crore, has resulted in Nature Bio-Foods Ltd becoming a wholly-owned subsidiary of LT Foods.
Further demonstrating its commitment to global expansion, the company commenced operations at its newly established rice production facility in the United Kingdom in July. This facility is expected to better serve the UK market and attract a broader consumer base. Additionally, LT Foods is in the process of doubling its production capacity in the United States to meet the growing demand in that region.
Arora emphasized the importance of these expansions, noting, “To ensure our continued growth, we have been systematically increasing our manufacturing capacity both in India and abroad, with an average annual investment ranging between ₹150-200 crore.”
The company’s ready-to-cook and ready-to-eat product lines are also experiencing significant growth. Arora projects that these segments will account for approximately 8-10% of LT Foods’ total revenue within the next five years. This expanding portfolio includes innovative products such as Daawat Sehat, Quick Cooking Brown, Black, and Red Rice, Royal Ready-to-Heat in the US, Daawat Cuppa Rice, Biryani Kit, and Kari Kari, a Japanese rice snack.
In addition to expanding its product offerings, LT Foods is also focused on strengthening its distribution network across India. “We aim to increase our direct distribution network from 200,000 to 300,000 general trade outlets over the next 2-3 years,” Arora revealed. He also pointed out that the company is adapting quickly to changes in the market, with particularly strong growth observed in e-commerce and quick commerce channels.
Through a combination of strategic investments, expanded production capacities, and a diversified product portfolio, LT Foods is well-positioned to capitalize on the increasing global demand for basmati rice and other premium food products. The company’s continued focus on both organic and inorganic growth avenues underscores its commitment to maintaining its upward trajectory in the years ahead.
LT Foods is a global food company known for its premium rice brands like Daawat and Royal. With a strong presence in over 80 countries, the company specializes in basmati rice, organic food, and ready-to-eat products. Focused on innovation and sustainability, LT Foods continues to expand its global footprint through strategic investments and acquisitions.
