LT Foods to roll out value-added rice products and regional variants

LT Foods LtdWhich owns the Basmati “Dawat” brand rice, is betting big on value-added rice products and regional variants of rice, even as it looks to increase its share in the local business. The domestic market currently accounts for about 30 per cent of the company’s total turnover, which was nearly Rs. 7,000 crore in FY23. The remaining 70 per cent comes from exports mainly to the US, Europe, the Far East and the Middle East.

Increase the share of local business

According to Rich Arora, CEO, India and Far East of LT Foods, the domestic market has witnessed a rise in demand in the past few years as more and more consumers are turning towards packaged and healthy products, especially in the wake of COVID-19. The company is looking to capitalize on the growing demand by launching regional variants, including those in the non-basmati categories.

“Over the past few years, we have seen improvements in the (basmati rice and packaged rice) category as well as the organization. Arora told Bline of use.

Non-Basmati rice currently represents approximately 5-6 percent of the company’s domestic sales volume and is looking to increase this further. The company launched three new variants for Gujarat and Maharashtra last year and is looking forward to rolling out more regional variants going forward.

Expanding reach in smaller towns and cities

Apart from launching new products, the company will also focus on expanding its reach and strengthening its footprint in smaller towns and cities. “We continue to expand our footprint in cities with populations of 50,000-100,000. The West region currently accounts for approximately 50 percent of our total business; the North accounts for about 20 percent, while the East and South make up 15 percent each,” he said. .

Arora said LT Foods owns nearly 30 percent of the total basmati market in India, which is estimated to be around Rs 4,000 to 5,000 crore. The company is also optimistic about increasing its market share.

Expand distribution of value-added rice variants

The company, which launched various value-added rice varieties about two years ago, is now looking forward to expanding distribution in different parts of the country. Value-added products currently account for about 2-3 percent of the company’s total sales and plan to raise it to about 10 percent in the next five years.

LT Foods hopes to achieve 10-12 percent growth in the product line in 2023-24 supported by steady demand from both domestic and international markets.