LT Foods, known for its Daawat brand of rice, is aiming for a larger slice of the convenience foods market, anticipating revenues of Rs 800 crore by 2028-29.
This move was followed by the company’s initiative to diversify from its core business of packaged rice, sold domestically in India and exported globally.
In 2017, LT Foods initiated a joint venture, Daawat-Kameda India, with Japan’s Kameda Seika, venturing into India’s snacking sector.
Their debut product, the rice-based snack Kari Kari, launched in India the same year, backed by a Rs 60 crore investment in the JV. Amit Mehta, Vice President of Foods and Managing Director of Kameda LT Foods India, affirmed plans for further investments and expansion of their portfolio, exploring Japanese rice-based snacks and condiments.
While the company already markets ready-to-heat and ready-to-eat products like biryani kits and cup rice across the Americas, Europe, Middle East and India, Mehta highlighted their anticipation of growing demand for convenience foods.
The company envisions tapping into two primary platforms: an on-the-go snacking platform and meal kit solutions.
Mehta underlined the company’s focus on bridging the gap in rice-based snacks while observing abundant options on the wheat side, such as noodles and chips.
LT Foods aims to introduce more meal prep kits, including Thai curries and Mexican rice dishes, aligning with evolving consumer preferences influenced by social media and increased experimentation with home cooking.
In line with heightened investments by major packaged food companies in India, LT Foods remains receptive to organic and inorganic expansion possibilities.
Mehta emphasised potential expansions, including mergers and acquisitions, investments in research and development, bolstering in-house resources, enhancing the supply chain infrastructure and strategic collaborations.
The company envisions reaching Rs 200 crore in sales from heat-and-eat meals, Rs 700 crore from instant rice snack meals and Rs 100 crore from rice crackers by 2028-29. In the fiscal year 2022-23, LT Foods recorded revenues of Rs 6,979 crore and a profit after tax of Rs 423 crore.
