About
L T Foods Ltd
LT Foods Ltd was incorporated on October 16, 1990 as a private limited company with the name LT Overseas Pvt Ltd. On May 3, 1994, the company was converted into a public limited company and the name was changed to LT Overseas Ltd. In September, 2008, the name of the company was changed from LT Overseas Ltd to LT Foods Ltd.
The company is engaged in the manufacture and sale of rice under the brand DAAWAT. They also manufacture and market parboiled rice. Their product is marketed in more than 50 countries. The company's brand portfolio includes DAAWAT Traditional Basmati Rice, DAAWAT Biryani Basmati Rice, DAAWAT Pulav Basmati Rice, DAAWAT Super Basmati Rice and DAAWAT Rozana. Their product portfolio also includes brown rice, white rice, steamed rice, parboiled rice and organic rice. Their product range includes Select, Gold Basmati Rice, Super, Chef's Secretz, Rozana, Devaaya Basmati Rice, Brown Rice, and Heritage.
In 1993, the company started their operations using certain processing facilities of Lal Chand Tirath Ram Rice Mills (LCTRRM), an associate concern, on lease. In the year 1993, they got their registration as manufacturer exporter from APEDA.
During the year 1994-95, the company filed the draft prospectus with SEBI and Stock Exchanges in Mumbai, Delhi, Jaipur and Ahmedabad. The object of the issue was to part finance the expansion programme for setting up a milling plant with a capacity of 2 MTPH. They received the observation letter from SEBI but they did not take the matter forward on account of the then prevailing poor conditions in the capital markets.
In the year 1995, the company set up milling capacity (paddy to rice) of 4 MTPH, at Sonepat. During the year 1995-96, the company registered the brand 'DAAWAT' in United States of America. During the year 1997-98, they received 'APEDA Export award' for outstanding contribution to promotion of agricultural and processed food products during the year 1996-97. In March 26, 1999, they took over the business of Lal Chand Tirath Ram Rice Mills having milling capacity of 6 MTPH, thus increasing the total milling capacity to 10 MTPH.
During the year 1999-2000, the company was recognized as Star Trading House by Government of India. They launched the brand 'DAAWAT' in Mauritius, Saudi Arabia and New Zealand. They started setting up a new manufacturing facility at Bahalgarh, Haryana and in December 2000, they commenced commercial production.
During the next two years, they launched the brand 'DAAWAT' in Australia and Canada. During the year 2002-03, the company increased the capacity in Bahalgarh unit from 4 TPH to 10 TPH, making the total capacity to 16 MTPH. During the year 2003-04, they received Award from APEDA for export promotion and quality development of Basmati Rice.
During the year 2004-05, the company increased the capacity in Bahalgarh unit from 10 TPH to 12 TPH, making the total capacity to 18 MTPH. Also, they received India Star Award from Indian Institute of Packaging during the year. During the year 2006-07, the company increased the total production capacity from 18 MTPH to 27 MTPH. Also, they inaugurated the Silos Complex during the year.
During the year 2007-08, the company set up a state of the art plant at Mandideep, Bhopal (MP). The production capacity of the company's main plant at Bahalgarh was increased from 27 MTPH to 33 MTPH. With this addition, the total capacity increased to 50.50 MTPH. Also, they started Sales Depot operation in Chennai, to provide better services to our esteem customers of Tamil Nadu state.
During the year, the company invested in LT Infotech (P) Ltd which is in to the business of telecommunication and which has entered in to a joint venture with Cordia International. In December 2007, the company's wholly owned subsidiary LTO North America Inc acquired Kusha Inc, a largest distribution company in U.S. with the brand name 'ROYAL'. With this acquisition, the company increased their market share in the US market from 7% to 52%.
During the year 2008-09, the company incorporated LT Agri Services Pvt Ltd as a Wholly Owned Subsidiary of Daawat Foods Ltd.
The company was conferred with APEDA Export Award in this year for the performance pertaining to year 2007-08. Also, Daawat Foods Ltd, a wholly owned subsidiary company received Export Excellence award for their excellence in operations and export by State of Madhya Pradesh in their first full year of operations.
During the year 2009-10, the company bagged the 'Wheat Silos Project' on Build-Own-Operate (BOO) basis for a period of 30 years from Punjab State Grains Procurement Corporation Ltd, Government of Punjab for storage and handling of 50,000 MT of wheat. The company's flagship brand, 'Daawat' increased its presence across the length and breadth of the country.
In 2010-11, the Company ventured into foodgrain storage business and also into biomass based power generation business. It made pioneering entry into foodgrain storage business and developed storage capacity of 50,000 MT of wheat in modern silos at Mulechak near Amritsar. It launched 6 new variants of Basmati special grains rice under Daawat Chef's Secretz' brand in November 2010. It launched four new variants of Daawat Basmati Rice namely Daawat Biryani Basmati Rice, Daawat Traditional Basmati Rice, Daawat Super Basmati Rice and Daawat Pulav Basmati Rice.
In 2012, it launched Daawat in Trinidad & Tobago, introduced the brand in Costco, Australia and launched Daawat Biryani in Singapore & Australia. It also launched fast cooking brown rice and procured bulk sales for the same in Europe and US. It ventured into International Trading business division during FY 12. Another notable launch of FY 13 was Daawat Tibar. Initiation of wheat flour export to USA and Australia was also a key milestone that underlined growth during FY 13. The launch of Atta under the Royal brand in USA and Australia, leveraging the strong dealer network in the two countries, became a significant step towards further diversification. It also introduced 'Organic Quick Cooking Brown Rice' in America.
It introduced Devaaya staples namely Atta (wheat flour), Suji (semolina), Besan (gram flour), Poha (flattened rice), Dalia (bulgur) and Maida (refined flour) in 2014. In 2014-15, the Company developed and delivered two grain silos to Madhya Pradesh Warehousing and Logistics Corporation (one each at Bhopal and Indore). In 2015-16, it acquired two iconic brands - Gold Seal Indus Valley and Rozana to strengthen its foothold in the Middle East region. It incorporated a Company by the name of LT Foods International Limited in United Kingdom. It acquired iconic brand 817 Elephant brand of rice through its UK subsidiary to further strengthen its presence in Canada, US and Dubai.
In 2016-17, it opened a branch and established a plant in Rotterdam to strengthen its presence in Europe. It formed a JV with Japanese Snack Food major Kameda to manufacture and market rice based snacks in India. Further, it entered in a JV with Future Group for sourcing and manufacturing of regional rice. It opened a plant for the same in Tumkur, Karnataka. It expanded geographic reach with addition of 300 new distributor towns and retail outlets in India.
During the year 2017-18, the Company acquired 100% stake of Deva Sing Sham Singh Export Private Limited which became the wholly-owned subsidiary of the Company. Also, it acquired 92% Stake of M/s Raghunath Agro Industries Private Limited from its another subsidiary namely Daawat Foods Limited.
L T Foods Ltd
Chairman Speech
Dear Shareholders,
The world economy weathered a number of challenges in the year gone by.
Businesses and economies faced numerous problems as a result of the Russia-Ukraine war and
the Covid pandemic. However, we are happy to announce that we have achieved robust revenue
growth for yet another year, demonstrating the strength of our business model. The Farm to
Fork approach, global supply chain hubs, wide distribution network across geographies, and
continued investments behind our brands has endowed our business with strength and
resiliency to generate market beating growth and profits.
Business performance
Our segments – Basmati and Other Specialty Rice, Organic Food and
Ingredients, Convenience and Health – have collectively contributed to an impressive
28% Y-o-Y growth wherein Basmati and other specialty segment saw a growth of 31%, Organic
segment grew 11% and convenience and health segment witnessed a growth of 36% i.e. ~2.5%
of our revenue.
Our total revenue witnessed remarkable growth, reaching H 6,979 Crore,
reflecting a substantial 28% increase compared to the previous fiscal year. Our gross
Profit was H 2,401 Crore, an increase of 31% and EBITDA stood at H 744 Crore, a 20%
increase from the previous fiscal year. The PAT stood at H 423 Crore and we achieved a
remarkable growth of 37% over the previous financial year. Our earnings per share stood at
H 12.5 while our debt to equity ratio improved to 0.3.
In India, LT surpassed industry growth with a 14.4% overall growth
rate, with specialty and mid-segment products growing at an even faster pace, delivering
on our strategic goal of premiumisation. Our market share in India has experienced
continued growth, reaching an impressive 29.6% in March 2023. This represents a
significant increase of 230 basis points (bps), as reported by the AC Nielsen Retail
Survey Audit. The number of households consuming products by LT Foods increased by 31.26%
(compared to the category growth of 5.5%) to reach 45.38 Lakh households, as per household
panel data. This is the result of a mix of targeted marketing campaigns across several
platforms and an expanded distribution network, which has enabled us to reach and service
a larger consumer base. Our retail reach also increased by 9.1% and stood at 176,741
outlets.
In our US business, we successfully maintained our market share of 50%+
with our flagship brand, Royal. To cater to the growing demand, we expanded our portfolio,
resulting in a remarkable 37% sales growth for Royal RTH foods. Royal RTH became the
fourth largest brand in the ready-to-heat rice segment in the US. Additionally, we made a
strategic acquisition of the jasmine rice brand Golden Star, and efficiently integrated
their operations into LT Foods America, meeting our expectations.
We have continued to build on our leading share in EU. Our Daawat
business continues to gain market share in UK and in the top consuming countries of the EU
with expanded distribution network and marketing investments and business has overall
increased by 23% during the financial year.
In The Middle East, our business has shown a good double digit growth
resulting in strengthening our market share in the largest Basmati consuming region in the
world. We also hold a leadership position in Israel and other countries as well.
During the fiscal year, we made a strategic deal with SALIC, the Saudi
Sovereign Fund. Through a main and secondary investment of H 455.5 Crore, SALIC now holds
a 9.22% equity share in LT Foods. This accelerates LT Foods' organic and inorganic
expansion plans across business segments. It will increase our growth ambitions, notably
in The Middle East and Saudi Arabia region, and reinforce our leading position in the
industry.
In The Far East, we have further strengthened our leadership position
in markets like Australia and Singapore, building our total share in the Far East to a
leading 16% market share.
It is heartening that despite the price increases impacting overall
exports to this region, we have been able to mitigate the impact and maintain our position
due to brand strengths. Our focus remains on continuing to build on brand, strengthening
the distribution network and expanding product penetration across geographies and
continents.
Growing Responsibly and Sustainably
Our commitment to giving back to society has always been an integral
part of our ethos. As part of our responsible growth strategy, we are continually
embracing the principles of Environment, Social and Governance (ESG). During the fiscal
year, we advanced further towards our ESG goals. Our priority is to make sustainability
the cornerstone of all farm operations. We firmly believe that the well-being and
prosperity of our farmers are intrinsically linked to the preservation of the environment.
By prioritising sustainable practices, we are not only enhancing the economic viability of
our farmers, but also upholding our collective responsibility to protect and conserve the
planet's precious natural resources for future generations.
Therefore, we have set ambitious goals for training farmers in
sustainable farming practices. By 2025, our aim is to train 50,000 farmers in sustainable
farming methods. We are pleased that more than 16,000+ farmers have already been trained
during the year under review.
Some other notable developments include our efforts towards bringing
2.5 Lakh acres of organic farmland under sustainable cultivation by 2030. Indeed, we have
already done so with 1.64 Lakh acres of farmland, paving the way for healthier
agricultural methods and a greener future.
In accordance with our commitment to the environment, we established
ambitious plastic sustainability goals. Guided by the principles of Reduce, Reuse and
Recycle (3Rs), we are diligently working to minimise our plastic footprint. We have
achieved 100% plastic neutrality through Extended Producer Responsibility (EPR).
Enhancing brand equity
During the fiscal year, we continued to strengthen our brand equity
through well-crafted marketing campaigns designed to engage consumers globally. This has
helped us gain more share across geographies. Daawat has attained more than 29%+ share in
India and enjoys close to 50% share of Basmati in US, apart from leadership share in
geographies like Australia, Israel and others in the Far East.
Digitalisation
At LT Foods, we embrace technological advancements in an ever-evolving
world. We have been leveraging the power of data-driven insights and integrating machine
augmentation into our processes. A noteworthy achievement in our digitalisation efforts
has been the comprehensive, end-to-end digitisation across our procurement process,
ensuring seamless efficiency from paddy acquisition at the market yard to unloading; and
likewise, in rice procurement from requirement generation to contract finalisation,
By prioritising sustainable practices, we are not only enhancing the
economic viability of our farmers, but also upholding our collective responsibility to
protect and conserve the planet's precious natural resources for future generations.
Therefore, we have set ambitious goals for training farmers in sustainable farming
practices. In our advanced SAP system. We remain dedicated to refining and optimising our
operations through strategic deployment of cutting-edge technologies.
Strategic objectives
We continue our work on our three core strategic pillars::
Growth: We are pursuing a target 5-Year revenue CAGR of 10-12%
we will also continue to grow our core Basmati business by investing more on brands and
expanding our distribution reach with Revised Route to Market and product portfolio
expansion by leveraging the brand equity and the existing distribution network. In organic
segment we will grow with expansion of portfolio as well as stock and sell model in
different geographies.
We will also further solidify our presence in existing regions and
expand our reach in new geographical areas. Further, we will focus on new products in the
Ready-to-Eat, Ready-to-Cook and Rice-based snacks segments.
Margin expansion: We aim to increase our 5-Year EBITDA margin by
140-150 basis points (bps). We will implement measures that lead to a change in product
mix, optimise efficiencies across the value chain, and capitalise on economies of scale.
Strengthen financial metrics: We will focus on further
strengthening our balance sheet metrics and return ratios. Our aim is a Return on Capital
Employed (ROCE) of 23% by FY 2024-25, and a Return on Equity (ROE) of 20% by FY 2024-25.
These financial metrics will reflect our efficient use of capital and commitment to
delivering value to our shareholders.
Daawat has attained more than 29%+ share in India and has enjoys close
to 50% share of Basmati in US, apart from leadership share in geographies like Australia,
Israel and others in the Far East.
Looking ahead
We remain steadfast in our commitment to delivering exceptional value
to our stakeholders through continuous growth in our business, our financial matrices and
products that delight global consumers, while operating in a environmentally and socially
responsible manner.
Our strategic focus on a robust supply chain, expanded global
distribution networks, digitisation and sustainability enabled by investments in our
global talent pool, will continue to strengthen our position as a global consumer food
Company. We are confident that we can scale new heights, meet the evolving needs of our
consumers and drive sustained growth in the years to come.
We thank our consumers, shareholders, business partners and key
advisors for their continued trust in our Company. With the support of our shareholders,
we look forward to nurturing goodness while maximising our shareholders' returns. We
will create a fully integrated, global, sustainable, predictable, profitable and growing
consumer business across all geographies, in line with our commitment to grow responsibly.
Thanks, and regards,
| Vijay Kumar Arora |
| Chairman & Managing Director |
| Ashwani Kumar Arora |
| Managing Director & |
| Chief Executive Officer |
  Â
L T Foods Ltd
Company History
LT Foods Ltd was incorporated on October 16, 1990 as a private limited company with the name LT Overseas Pvt Ltd. On May 3, 1994, the company was converted into a public limited company and the name was changed to LT Overseas Ltd. In September, 2008, the name of the company was changed from LT Overseas Ltd to LT Foods Ltd.
The company is engaged in the manufacture and sale of rice under the brand DAAWAT. They also manufacture and market parboiled rice. Their product is marketed in more than 50 countries. The company's brand portfolio includes DAAWAT Traditional Basmati Rice, DAAWAT Biryani Basmati Rice, DAAWAT Pulav Basmati Rice, DAAWAT Super Basmati Rice and DAAWAT Rozana. Their product portfolio also includes brown rice, white rice, steamed rice, parboiled rice and organic rice. Their product range includes Select, Gold Basmati Rice, Super, Chef's Secretz, Rozana, Devaaya Basmati Rice, Brown Rice, and Heritage.
In 1993, the company started their operations using certain processing facilities of Lal Chand Tirath Ram Rice Mills (LCTRRM), an associate concern, on lease. In the year 1993, they got their registration as manufacturer exporter from APEDA.
During the year 1994-95, the company filed the draft prospectus with SEBI and Stock Exchanges in Mumbai, Delhi, Jaipur and Ahmedabad. The object of the issue was to part finance the expansion programme for setting up a milling plant with a capacity of 2 MTPH. They received the observation letter from SEBI but they did not take the matter forward on account of the then prevailing poor conditions in the capital markets.
In the year 1995, the company set up milling capacity (paddy to rice) of 4 MTPH, at Sonepat. During the year 1995-96, the company registered the brand 'DAAWAT' in United States of America. During the year 1997-98, they received 'APEDA Export award' for outstanding contribution to promotion of agricultural and processed food products during the year 1996-97. In March 26, 1999, they took over the business of Lal Chand Tirath Ram Rice Mills having milling capacity of 6 MTPH, thus increasing the total milling capacity to 10 MTPH.
During the year 1999-2000, the company was recognized as Star Trading House by Government of India. They launched the brand 'DAAWAT' in Mauritius, Saudi Arabia and New Zealand. They started setting up a new manufacturing facility at Bahalgarh, Haryana and in December 2000, they commenced commercial production.
During the next two years, they launched the brand 'DAAWAT' in Australia and Canada. During the year 2002-03, the company increased the capacity in Bahalgarh unit from 4 TPH to 10 TPH, making the total capacity to 16 MTPH. During the year 2003-04, they received Award from APEDA for export promotion and quality development of Basmati Rice.
During the year 2004-05, the company increased the capacity in Bahalgarh unit from 10 TPH to 12 TPH, making the total capacity to 18 MTPH. Also, they received India Star Award from Indian Institute of Packaging during the year. During the year 2006-07, the company increased the total production capacity from 18 MTPH to 27 MTPH. Also, they inaugurated the Silos Complex during the year.
During the year 2007-08, the company set up a state of the art plant at Mandideep, Bhopal (MP). The production capacity of the company's main plant at Bahalgarh was increased from 27 MTPH to 33 MTPH. With this addition, the total capacity increased to 50.50 MTPH. Also, they started Sales Depot operation in Chennai, to provide better services to our esteem customers of Tamil Nadu state.
During the year, the company invested in LT Infotech (P) Ltd which is in to the business of telecommunication and which has entered in to a joint venture with Cordia International. In December 2007, the company's wholly owned subsidiary LTO North America Inc acquired Kusha Inc, a largest distribution company in U.S. with the brand name 'ROYAL'. With this acquisition, the company increased their market share in the US market from 7% to 52%.
During the year 2008-09, the company incorporated LT Agri Services Pvt Ltd as a Wholly Owned Subsidiary of Daawat Foods Ltd.
The company was conferred with APEDA Export Award in this year for the performance pertaining to year 2007-08. Also, Daawat Foods Ltd, a wholly owned subsidiary company received Export Excellence award for their excellence in operations and export by State of Madhya Pradesh in their first full year of operations.
During the year 2009-10, the company bagged the 'Wheat Silos Project' on Build-Own-Operate (BOO) basis for a period of 30 years from Punjab State Grains Procurement Corporation Ltd, Government of Punjab for storage and handling of 50,000 MT of wheat. The company's flagship brand, 'Daawat' increased its presence across the length and breadth of the country.
In 2010-11, the Company ventured into foodgrain storage business and also into biomass based power generation business. It made pioneering entry into foodgrain storage business and developed storage capacity of 50,000 MT of wheat in modern silos at Mulechak near Amritsar. It launched 6 new variants of Basmati special grains rice under Daawat Chef's Secretz' brand in November 2010. It launched four new variants of Daawat Basmati Rice namely Daawat Biryani Basmati Rice, Daawat Traditional Basmati Rice, Daawat Super Basmati Rice and Daawat Pulav Basmati Rice.
In 2012, it launched Daawat in Trinidad & Tobago, introduced the brand in Costco, Australia and launched Daawat Biryani in Singapore & Australia. It also launched fast cooking brown rice and procured bulk sales for the same in Europe and US. It ventured into International Trading business division during FY 12. Another notable launch of FY 13 was Daawat Tibar. Initiation of wheat flour export to USA and Australia was also a key milestone that underlined growth during FY 13. The launch of Atta under the Royal brand in USA and Australia, leveraging the strong dealer network in the two countries, became a significant step towards further diversification. It also introduced 'Organic Quick Cooking Brown Rice' in America.
It introduced Devaaya staples namely Atta (wheat flour), Suji (semolina), Besan (gram flour), Poha (flattened rice), Dalia (bulgur) and Maida (refined flour) in 2014. In 2014-15, the Company developed and delivered two grain silos to Madhya Pradesh Warehousing and Logistics Corporation (one each at Bhopal and Indore). In 2015-16, it acquired two iconic brands - Gold Seal Indus Valley and Rozana to strengthen its foothold in the Middle East region. It incorporated a Company by the name of LT Foods International Limited in United Kingdom. It acquired iconic brand 817 Elephant brand of rice through its UK subsidiary to further strengthen its presence in Canada, US and Dubai.
In 2016-17, it opened a branch and established a plant in Rotterdam to strengthen its presence in Europe. It formed a JV with Japanese Snack Food major Kameda to manufacture and market rice based snacks in India. Further, it entered in a JV with Future Group for sourcing and manufacturing of regional rice. It opened a plant for the same in Tumkur, Karnataka. It expanded geographic reach with addition of 300 new distributor towns and retail outlets in India.
During the year 2017-18, the Company acquired 100% stake of Deva Sing Sham Singh Export Private Limited which became the wholly-owned subsidiary of the Company. Also, it acquired 92% Stake of M/s Raghunath Agro Industries Private Limited from its another subsidiary namely Daawat Foods Limited.