The new facility will have an initial estimated production capacity of 30,000 metric tonne per annum. Commercial production is expected to commence around 2 February 2026
LT Foods, a global fast-moving consumer goods (FMCG) company, has notified the setting up of a new manufacturing facility in Raichur, Karnataka, for regional rice varieties, including Sona Masoori and Kolam. The move reinforces the company’s goal of strengthening its value chain for South India’s preferred rice varieties and tapping into the rapidly formalising regional rice market.
The new facility will have an initial estimated production capacity of 30,000 metric tonne per annum. Commercial production is expected to commence around 2 February 2026, subject to the receipt of necessary statutory and regulatory approvals. The project entails an estimated capital expenditure of Rs 6 crore, which will be funded through internal accruals.
“The move is a strategic step in strengthening our regional rice business in India. Regional varieties such as Sona Masoori and Kolam have deep-rooted consumer relevance and consistent demand, and this investment allows us to further strengthen the value chain, from sourcing to processing and delivering a consistent experience to our consumers,” stated Ritesh Arora, Chief Executive Officer (CEO), India Business and Far East, LT Foods.
The company stated that Karnataka represents one of India’s most vibrant and attractive markets for regional rice, both from a production and consumption standpoint. The state is a significant producer of premium non-Basmati rice and is supported by a large, discerning consumer base with a strong affinity for regional specialties. Varieties such as Sona Masoori and Kolam are staples across South Indian households, with Sona Masoori enjoying widespread acceptance beyond Karnataka in Andhra Pradesh, Telangana and among the global Indian diaspora.
LT Foods reported a 25 per cent year-on-year rise in consolidated revenue to Rs 5,273 crore in the first half of FY26, driven by strong growth across its rice, organic, and ready-to-eat portfolios. Ebitda grew 20 per cent to Rs 619 crore, profit after tax rose nine per cent to Rs 332 crore, and cash profit increased 13 per cent to Rs 445 crore. Gross profit stood at Rs 1,815 crore, up 27 per cent year-on-year.
