Leading basmati rice firm LT Foods Ltd is targeting to double its turnover to Rs 6,000 crore by 2020 and is looking for growth organic as well as inorganic routes to become a FMCG company.
LT Foods has presence in over 65 countries with revenue of nearly Rs 3,000 crore last fiscal. Its two major brands ‘Daawat’ and ‘Royal’ registered strong volume growth of about 25 per cent both in domestic and overseas markets in 2015-16.
“We expect a 8-10 per cent growth in our turnover during this fiscal. In volume terms, the growth is estimated at 20-25 per cent,” LT Foods Chairman and Managing Director VK Arora was quoted by news agency PTI as saying.
Out of the total turnover expected this fiscal, he said about 60 per cent would be from exports.
“US is our biggest export market. We have become undisputed leader in American market with 45-50 per cent share in basmati trade,” he told PTI, adding that the company sells about 70,000 tonnes of basmati rice in US.
On growth plans, Arora told PTI the company has chalked out strategy for growth both through organic and inorganic routes. The company is eyeing brand acquisition in both India and global markets.
“We are targeting to double our turnover by 2020. We have made growth. From leading basmati rice company, we want to become a FMCG company,” he was quoted by PTI as saying.
On domestic market, the company’s CEO Ashwani Arora told PTI the company is a leading brand with a market share of 22-23 per cent.
Besides branded basmati rice, the company offers value-added staples and organic food, which is expected to contribute about Rs 100 crore in revenue this fiscal.
LT Foods, which has five manufacturing units in India, had last year acquired branded rice business of Hindustan Unilever focused in middle-east market. It had acquired Gold Seal Indus Valley and Rozana brands.
In November, LT Foods, entered into a JV with KAMEDA SEIKA of Japan to manufacture and market rice based snacks in India.