LT Foods Aims for Growth in Ready-to-Cook Meals and Snacks Market

LT Foods, recognized for its popular Daawat rice brand, is set to capture a larger market share in the realm of convenience foods, targeting revenues of ₹800 crore by 2028-29. Diversifying from its staple packaged rice offerings, the company is eyeing ready-to-cook meals and snacks.

Back in 2017, LT Foods forged a joint venture, Daawat-Kameda India Pvt. Ltd, in collaboration with Japan's Kameda Seika, to make a foray into India's snacking market. This partnership led to the introduction of the rice-based snack, Kari Kari, in the same year. The company has already invested ₹60 crore in this venture and plans to expand its product portfolio to include more rice-based snacks and Japanese sauces.

Recognizing the evolving consumer preferences, the company foresees an increasing demand for convenience foods. Amit Mehta, Vice President, Foods, and Managing Director, Kameda LT Foods India, highlighted two key platforms - an anytime, anywhere snacking platform and meal kit solutions. The company aims to bridge the gap in the rice snacking space while catering to the growing trend of in-home cooking.

In addition to organic growth, LT Foods remains open to expanding through mergers and acquisitions, investing in research and development, enhancing in-house resources, strengthening supply chain infrastructure, and exploring strategic tie-ups.

LT Foods Performance

As of 2022-23, LT Foods reported revenues of ₹6,979 crore, with a profit after tax of ₹423 crore. The company exports rice to over 60 markets, including the US, Europe, and the Middle East, with flagship brands Daawat and Royal. Basmati and specialty rice constituted 79% of its overall revenue in 2022-23.

LT Foods shares dipped 3% in the last month, but the broader view reveals strong performance: up 57% in six months, 78% in a year, and an impressive 386% return over five years, showcasing sustained value and investor gains.

Final Words

LT Foods is strategically positioning itself to meet evolving consumer demands, leveraging its core competency in rice while diversifying into the lucrative market of convenience foods. The company's ambitious revenue target for 2028-29 reflects its commitment to innovation and adaptability in a dynamic market.