LT Foods strengthens RTC, organic product lines for double-digit growth

The main markets for the company's organic range are Europe and America, which account for 85% of the brand's sales

LT Foods, which sells specialty rice under the Daawat brand, will focus on its organic range to drive double-digit growth, said the Gurugram-based fast moving consumer goods company.

“We sell organic products under the name Ecolife and are adding more products to make our base stronger in the country. More people are looking for cleaner products now and that is what we are trying to leverage,” said Ashwani Arora, chief executive officer and managing director at LT Foods.

Europe and America are the main markets for the company’s organic range, accounting for 85 per cent of sales.

The company, which had a compound annual growth rate of 15 per cent in FY24, expects to sustain the momentum for double-digit growth

 

Growth will also come from scaling up ready-to-cook (RTC) and ready-to-eat (RTE) ranges to include rice-based breakfast products.

“Although the base is small, we are growing 25 per cent in the RTC, RTE segments. We are adding more products, especially for breakfast and snacking where we want to give the consumer a solution around rice in those meals. In America, we are investing Rs 100 crore to expand our capacities for these lines,” said Arora.

“Our biryani-related products – biryani kits and biryani rice – are also performing well and clocking a growth of 20 per cent.”

For this, LT Foods is strengthening its distribution portfolio and is solidifying its presence across all channels. “Quick-commerce is growing very fast and we are seeing a growth of 12-15 per cent month-on-month in the channel. However, the bigger opportunity in front of us is to grow our general trade reach,” he said.

In the June quarter, the company had reported a 13 per cent increase in consolidated net profit to Rs 155.28 crore, while its revenue from operations was up 16.44 per cent to Rs 2,070.50 crore. LT Foods recently opened a new facility in the United Kingdom.

A good monsoon and the government’s Budget push will continue to aid the rural market, said Arora.