L T Foods Management Discussions

Global economic overview

The global economy is anticipated to experience a growth rate of 2.8% in CY23, which is likely to gradually increase and stabilise at 3.0% in CY24. Emerging markets and developing economies, including India, are powering ahead in many cases, with growth rates expected to witness a significant upsurge this year.

Emerging countries are also experiencing growth in various sectors, fuelled by government investments in infrastructure and manufacturing sectors.

Central banks monetary measures are likely to bear fruit, with global inflation falling from 8.7% in CY22 to 7.0% in CY23 and expected to be 4.9% in CY24. It is envisaged that pent-up demand in many economies, along with a major fall in inflation, will lead to faster economic growth in CY23.1


Notwithstanding inflationary pressures, the global economy is buoyed by a robust labour market, rising domestic spending, an influx of foreign capital and a prudent response to the energy crisis in Europe. Many emerging markets and developing economies (EMDEs) have already recovered, which has increased real incomes. An optimistic global outlook would also be determined by the speed and effectiveness of fiscal and monetary policy actions implemented to drive economic expansion. Central banks worldwide have been tightening monetary policy, which is anticipated to rein in sticky inflation and ensure long-term growth. A stronger boost from pent-up demand in numerous economies or a sharper fall in inflation is likely in the course of 2024. The governments and central banks of the world are expected to play a key role in accelerating economic growth through targeted, need-based initiatives.

Indian economic overview

The Indian government has managed to maintain a favourable domestic policy environment and prioritise structural reforms, making the countrys economy resilient amid global challenges. Projections indicate that Indias economy was at a rate of 7% during the FY 2022-23.2 Additionally, the countrys stabilising inflation rates, higher disposable income and continued investment in infrastructure development are expected to contribute positively to economic growth in the future. Several high-frequency indicators, such as GST collections, railway and air traffic revenue, electronic toll collections and E-way bill volume, indicate a robust economic rebound in India. This persistent growth momentum has positioned India as an attractive investment destination. Further, India is expected to sustain its status as the fastest-growing major economy in the coming years. Indias presidency of the G20 Summit in 2023 has also bolstered its international stature. Despite facing challenges, the Indian governments initiatives, such as the PM Gati Shakti - National Master Plan, the National Monetisation Plan (NMP) and the Production-Linked Incentive (PLI), have been crucial in fostering economic growth. The Reserve Bank of India (RBI) has also taken prudent and proactive measures to ensure financial stability and address liquidity constraints. These factors have contributed to the Indian economys resilience and stimulated substantial investments. The increase in kharif sowing, the abundance of buffer stocks and an improved reservoir position during FY 2021-22, all augur well for agricultural prospects and the trajectory of food inflation going forward. Risks are evenly distributed and CPI inflation is projected to average 6.7% in FY 2022–23.3 Food inflation dropped to 6.7% in July on account of the governments supply-side initiatives and some relaxation in global food costs. Cereals and vegetables were the primary contributors to the significant spike in food inflation that occurred during FY 2022-23.4


Amid global headwinds, Indias economic activity has remained robust due to a favourable domestic policy environment and the Governments persistent focus on structural reforms. The corporate sector is seeing rapid expansion, as witnessed by decreasing unemployment and an increase in net payroll additions under the EFPO. The economys corporate sector credit-to-GDP ratio remains below its historical trend, indicating that the corporate sector has plenty of room to increase its debt burden.

The corporate sectors solid debt profile has also been critical in driving macroeconomic stability5. Rising disposable income and easy availability of credit in the wake of a stable inflation trajectory will augur well for future economic growth.

Industry overview

Rice and specialty rice segment

Rice, wheat and maize are the three most important crops cultivated worldwide. Rice, on the other hand is a staple food for about half the global population. Rice supply in emerging economies is inextricably linked to both political stability and food security. In 2022, the global rice market was worth USD 294.39 billion. It is further expected to grow at a CAGR of 2.7% between 2023 and 20287. A higher number of restaurants and food chains around the world has led to a spike in consumer demand for premium quality rice along with other healthy and nutritious varieties. In 2021, the share of offline purchases in the global rice market amounted to 82% of the total sales. 8 The surge in demand for specialty rice varieties has given rise to an increased preference for long-grain rice, thereby commanding a substantial revenue share of more than 63% within the global market in the year 2021. In parallel, the medium-grain rice segment is projected to exhibit a growth of 2.4% from 2022 through 2028. The North American region is emerging as the fastest-expanding geographical market for rice, driven by a heightened demand for fragrant and specialty rice varieties. Anticipated expansion at a CAGR of 3.9% between 2022 and 2028 underscores this trajectory.

Notably, the European Basmati rice market, which experienced setbacks during the pandemic, has demonstrated swift recovery. Forecasts indicate a projected value of USD 866.5 million by the year 2031, reflecting a CAGR of 4.2% spanning from 2022 to 2031. On a broader scale, the Middle East is the largest consumer of Basmati rice, with 37.8% of the worlds rice being consumed in the region. The grain is mostly imported from Pakistan and India. Iran remained the most significant importer of Basmati rice from India9. Countries such as the Netherlands and Germany have also demonstrated a growing demand for Basmati rice and with sufficient improvements in the supply chain, the industry is set to witness further growth in the future.10 The Basmati rice market in India reached H 485.1 billion in FY 2022-23 and is expected to reach H 487.2 billion by FY 2027-28, with a CAGR of 1.1% from FY 2022-23 to FY 2027-28.11 The domestic demand for Indian Basmati rice is influenced by several factors, such as population, income levels, regional preferences and culinary traditions. With increasing consumer awareness and demand for packaged rice, especially Basmati, is growing in India.

During the FY 2022-23, Indias exports of Basmati rice demonstrated a notable increase, marking a substantial growth of 37.36%. This upward trajectory was observed as exports escalated from USD 1,660 million in the period spanning April to September 2021 to USD 2,280 million during the corresponding period in 2022. Concurrently, exports of non-basmati rice exhibited an increase of 8% within the second quarter of 2022-23. Moreover, exports of aromatic long-grain Basmati rice showcased a growth rate of 23%, culminating at a valuation of USD 1,056 per tonne from the timeframe of April through October in FY 2022-23.13

India exports a significant amount of rice to other countries. According to the APEDA, Iran, followed by Saudi Arab, Iraq, the UAE and the Yemen Republic, are the major importers of rice from India.15 Along with this, Sub-Saharan Africa and North and South America are among the largest consumers of rice.16 Therefore, there is significant scope for further expanding the market for both, basmati and non-basmati rice segments.

Organic food segment

Chemical fertilisers and pesticides in food products cause severe health issues, including cancer, hormonal imbalances, skin diseases and birth defects. Based on a UN report, over 200,000 people die each year due to the harmful effects of chemicals present in food products. As a result, consumers globally prefer organic foods that are devoid of toxic additives, chemicals and preservatives. This is one of the factors driving the explosive expansion of the organic food market. The global organic food market is expected to grow by USD 310.08 billion during CY2022-2027, at a CAGR of 15.85% despite a surge in commodity prices, supply-chain disruptions and soaring inflation.17 Organic food makers innovative strategies seek to address concerns regarding the low shelf life of organic food. This has also led to the introduction of novel products such as ready-to-eat organic items, organic tea and other grocery items that can be safely consumed. As a result of such initiatives, the organic food market is predicted to reach USD 512.01 billion by 2027, at a CAGR of 14.8%.18 The organic food market in India is a niche market. However, with increasing incidences of food adulteration, the scope for increasing its market size continues to grow. Several types of marketing campaigns in malls and localities are organised to target the masses and positively influence a shift towards the acceptance of organic food. Moreover, collaborations with e-commerce platforms have also helped improve revenues from this segment. The Government of India is also promoting the sectors growth by offering subsidies for organic farming and has rolled out favourable schemes such as the Mission for Integrated Horticulture Development (MIDH), the National Food Security Mission (NFSM) and the Rashtriya Krishi Vikas Yojana (RKVY) to add impetus to organic farming.19

Convenience and health segment

Ready-to-eat food, packaged beverages, prepared mixes and canned food are all part of the convenience and health segment. A hectic urban lifestyle, the rise of nuclear families and preferences for fast, ready-to-eat food are all driving the expansion of this market segment. The global ready-to-eat food market is expected to be worth USD 250.31 million by 2029, with a CAGR of 5.50%.20 Ready-to-eat food products have a fair prospect in the emerging and established markets of North America, Europe, Asia-Pacific, South America, the Middle East and Africa.21 Due to the growing demand for conveniently available food and healthy items from health-conscious young adults, the segment is expected to witness steady growth in the days ahead. Moreover, preferences for immunity boosting food, low-calorie content and gluten-free items are also expected to increase the market share of this sector.22

Company overview

LT Foods is a leading India based global FMCG Company in the consumer food space. We are a Company of brands and people for over seventy years and serving millions of households with our specialty rice and rice-based food businesses globally. The Company is committed to nurturing the goodness of food for people, the communities it serves and the planet.

With nurturing goodness at the heart of everything it does, the Company delivers high-quality, delicious meal experiences in more than 60 countries: India, the U.S., Europe, the Middle East, the Far East and the rest of the world. The Companys flagship brands include ‘Daawat, one of Indias most loved and consumed global Basmati brands, ‘Royal, North Americas No. 1 Basmati brand and many more.

The Company is also expanding into the future food preferences of millennials by offering organic food and supplying organic food-ingredients to leading businesses in the global market.

It has a consolidated revenue of around H 6,979 Crore as of FY 2022-23 and is growing at a 5-year revenue CAGR of 15% and a PAT CAGR of 35%. LT Foods has an integrated ‘Farm to Fork approach with a well established sourcing network and global supply chain hubs backed by automated state-of-the-art and strategically located processing / packaging units in India, the U.S. and Europe, as well as a robust distribution network with 1300+ distributors across the globe.

Daawat and Royal are the flagship brands of LT Foods, enjoying a leadership position in the Basmati rice segment in India and North America, with a market share of 27%+ and 50%+, respectively. With evolving consumer preferences, regional brands such as Devaaya, Rozana, Gold Seal Indus Valley, 817 Elephant, Golden Star, Leev and Ecolife have also built a strong consumer base over the years. One of our recently launched products, Kari Kari, in the convenience and health segment, is also gaining significant traction along with other products in this segment.

Business segments

Basmati and Speciality Rice Segments

In India and across the globe, LT Foods is a leading player dealing in a diverse variety of specialty rice and rice-based food offerings. LT Foods has made a significant mark in the Basmati and other specialty rice segment with its commitment to quality. Basmati rice, renowned for its distinctive aroma and long grains, is one of LT Foods specialties.

Currently accounting for 79% of the overall revenue in FY 2022-23, this segment forms a key part of the Companys business. This vertical has also recorded a growth rate of 9% in FY 2022-23, with a 3-year CAGR of 13%.

To expand its market presence across diverse economies, the Company has acquired a 51% stake in Golden Star Trading Inc., which holds more then 10% share in jasmine rice category with the brand name Golden Star.

Through strategic marketing initiatives and a focus on quality, LT Foods has successfully expanded its consumer base and captured a larger share of the Indian market. Its flagship brand, Daawat, acquired a market share of 29%+ in the Basmati market segment with a growth rate of 13%.

Along with Daawat, Royal and other regional brands such as Heritage, 817 Elephant, Gold Seal Indus Valley, Rozana, Devaaya, Golden Star and Leev, LT Foods is growing its market reach in India while endeavouring to retain its leadership position in The US, EU, The Far East, Israel, Reunion Island and other regions.

The Company offers a range of specialty rice varieties, including jasmine rice, arborio rice, sona masoori and black rice, among others. These specialty rice variants are carefully sourced, processed and packed to preserve their unique characteristics and deliver an authentic culinary experience to its consumers.

The household penetration of our Basmati and Specialty products has increased remarkably, as more and more consumers recognize and appreciate the superior taste and quality that LT Foods offers. Our commitment to delivering premium products has resonated with households, leading to increased adoption and loyalty among consumers. We offer solutions to our consumers for their different rice recipe for different occasions at different price points through several channels such as General Trade, Modern Trade, HoReCa and e-commerce via 1200 distributors in India and 100+ distributors in international markets. The Company has more than 1.76 Lakh retail outlets across India. By strengthening its distribution channels and partnering with retail establishments, LT Foods has enhanced its accessibility to consumers, ensuring that its products are readily available in key markets. Owing to the recovery in the HoReCa industry post-Covid, the large pack business has also recorded a growth rate of 58%. The Company has also recorded a positive trend in its non-basmati regional rice segments, i.e., Daawat Sona Masoori, Daawat Govind Bhog and so on.

Organic Food and Ingredient Segment

Organic food consumption has been increasing for a few years, primarily because people are now keen to adopt a healthy lifestyle. LT Foods focuses on meeting the consumer demand for organic food and healthier food ingredients by offering a wide variety of organic rice, cereal grains, soya-based meals, flour, pulses, oil and oilseeds, nuts, spices, herbs, millets and more. The organic food segment is carefully curated to meet the stringent standards set by recognised certification bodies, including the National Programme for Organic Protection (NPOP) of the Government of India, as well as international organic standards such as those of the European Union, USA National Organic Program (NOP), Canada, Japan, and Korea.

As a responsible corporate citizen, the Company has adopted eco-friendly practices. Also, making safety a priority across all its operations, LT Foods became one of the first Indian companies to be rewarded with the prestigious CII Food Safety Award. The Company partners with certified organic farmers who cultivate their crops using organic farming practices, avoiding the use of synthetic chemicals and genetically modified organisms (GMOs). This ensures that the Companys organic products are free from harmful pesticides, herbicides, and other chemical residues, providing a safer and healthier choice for consumers.

The Company is also expanding its product portfolio, to cater to the changing needs and tastes of its consumers. During the year, the Company has set up a stock and sell model in the USA and Europe which has enhanced the growth of its organic segment. Further expanding its procurement and production base, the Company has ventured into and set up a facility in Africa as well. Position since its launch. Following the success of Daawat Quick Cooking Brown Rice, the Company launched Daawat Sehat, the iron and vitamin-fortified rice, on the health platform, which is also well-accepted by consumers.

The share of convenience and health segment has grown from 2% to 2.5% during the FY 2022-23.

The Company launched new products during the year, which are listed below:
• Daawat Black Rice
• Daawat Jasmine Rice
• Devaaya Weight Watcher
(Economy Brown Rice Segment)
• Devaaya Sona Masoori
• Royal Instant Cuppa Rice
• Royal Jalapeno Basmati
• Royal South Indian Rice

Convenience and Health Segment

With dynamic market trends such as changing lifestyles, increasing globalisation, improved technology, hectic schedules and higher awareness, it is important to evolve to satisfy unmet consumer needs. LT Foods has always put its consumers first in all its endeavours. Therefore, to gain better insights into their needs, the Company has created a robust mechanism based on which its products have been developed.

LT Foods identified two key trends that influence consumers when purchasing kitchen ingredients: convenience and health.

Inspired by consumer insights, Daawat Quick Cooking Brown Rice is LT Foods first successful product in this segment, and weve maintained a leadership

Daawat Sehat

The purpose of launching the brand Daawat Sehat, was to combat malnutrition with fortified rice. Daawat Sehat, fortified with iron, folic acid and vitamins B1, B3, B6 and B12, is perfect for daily consumption. The Company has a +F logo, which is also featured on the FSSI website. The Company conducted extensive marketing campaigns throughout the year using media such as TVCs, outdoor advertising and digital campaigns to promote the brand and demonstrate the significance of fortified rice.

Daawat Cuppa Rice

Enjoying delicious meals instantly has now become a reality thanks to rice meals by Daawat Cuppa. These are dehydrated, ready-to-eat meals that can be cooked in ten minutes by simply adding hot water. As it is quick and easy to prepare, contains only natural ingredients, and is devoid of preservatives and artificial colours, it is healthy and convenient – a fine option for on-the-go consumption. Consumers have already taken a strong liking to the five different varieties of Daawat Cuppa Rice. To raise awareness and encourage trials, the Company engaged in promotional activities. LT Foods collaborated with influencers to create social media content and organised visibility campaigns on various e-commerce sites, including Amazon and Big Basket.


Y-o-Y growth

Kari Kari

The Kari Kari snack from Daawat-Kameda is a one-of-a-kind, premium Japanese rice-based snack with flavours curated for the Indian palate. The snack swiftly gained popularity and is now available throughout Delhi, Punjab, Haryana, Uttar Pradesh, Maharashtra, Karnataka, Telangana, West Bengal, Assam, Manipur and Sikkim. In the coming years, the Company intends to promote this brand in other states as well. Through a 360-degree approach, the Company focused on increasing the penetration of the brand through e-commerce, numerous marketing initiatives such as display and search advertising, sampling, in-store activations, involvement in various food forums, etc.

Daawat Biryani Kits

The Biryani Kit is the ideal fusion of authenticity and simplicity. This product marks another turning point in the Companys ambition to consistently diversify its product portfolio. Innovation and user insights helped create it on the convenience and health platform, and the Company developed a step-by-step, go-to-market strategy to launch it in modern retail and e-commerce. It also has export potential, especially in the Middle East, Far East, Australia, the United Kingdom and the United States.

5.60+ Lakh units

Sold in FY 2022-23

Royal RTH

Royal RTH accomplished a remarkable feat by ascending to the position of the fourth largest brand in the U.S. market. This achievement was underscored by the brands robust sales growth, which surged by an impressive 37% compared to the previous year.

Business performance by geography

India business

In the fiscal year under review, the Company delivered steady growth aided by expansion, a robust distribution network and an impressive marketing presence. During the year FY 2022-23 the Company acquired a market share of 29% in the basmati rice market, with a growth rate of 13%. The Company implemented distributor business process engineering to improve stock flow, finance and digitalisation through proper system-based monitoring. Through digitalisation, a comprehensive data management system for distributor systems and processes was implemented.

The Company employs a multi-faceted approach that combines mass and digital media to reach a wide audience and ensure continuity in consumer engagement.

1.76+ Lakh

Number of retail outlets


Y-o-Y growth

The Companys business in India has experienced spectacular growth as a result of increased household penetration and presence in modern trade channels. By extending its reach to resellers and wholesalers, the Company aims to penetrate these segments and expand its consumer base. In-store visibility is another priority for LT Foods, as it utilizes category dressing, dealer boards, and in-shop branding to enhance product visibility and capture consumer attention. By creating an appealing in-store experience, the Company aims to drive purchase decisions and increase consumer engagement. By offering products at multiple price ranges, the Company is strengthening brand equity. The Companys major products are biryani, brown rice and pulav, which are promoted through targeted marketing campaigns that boost visibility across several platforms and states. The go-to-market strategy of LT Foods helps in increasing brand visibility across multiple touchpoints. To further raise brand recognition and recall, the Company seeks to increase coverage from 1258 to 1500 towns and productive coverage from 1.75 to 2.5 Lakh outlets in the coming year.


Of total revenue was contributed by LT Foods India business

International business

LT Foods international business is primarily driven by its flagship brands Daawat and Royal and by its regional brands. The Company has a wide presence across all distribution channels and with over 100 distributors, has established a robust supply chain network. The Company generates the majority of its revenue through exports, having a strong presence in the US and European markets; the remaining revenue comes from the Middle East and Far East countries, among others. The Company is a leading player in the basmati rice segment and is also diversifying into organic, rice-based, convenience and health foods.

Americas Region

LT Foods America has become a category leader in specialty rice by combining the Royal and Golden Star brands. The Companys South Carolina distribution facility has played a crucial role in enhancing service levels to consumers by eliminating dependence on third-party warehouse-logistics companies – now 15% of sales volume is handled through the facility. The Ready-to-Heat (RTH) segment has experienced significant growth, with increased production capacity and a decrease in production costs. Royal RTH has emerged as the fourth-largest brand in the US, with a remarkable 37% growth in sales over the previous year.

Further, through the Golden Star Trading Company joint venture, the Company has gained a strong foothold in the jasmine rice market, which is more than three times the size of the basmati rice market in the US.


Of total revenue was contributed by Americas region


Increase on year-on-year growth

With products including Royal Organic Basmati and Royal Sona Masoori being added to the distribution points of Costco and Sams Club, respectively, LT Foods has also achieved noteworthy progress in the club channel.

In the retail channel, LT Foods has expanded its presence through Walmart, with increased points of distribution for both RTH and dry rice products. The Royal brand has become a leader in various size segments, such as 5, 10 and 20 pounds. Furthermore, the Company has diversified its portfolio with the introduction of Royal Cuppa, which is now sold at Walmart, Stop & Shop and Hannaford.

LT Foods has been zeroing in on the private label channel that its been awarded for its basmati business. E-commerce growth has been impressive, with targeted ads yielding a high return on advertising spend.

In the food service channel, LT Foods has witnessed robust growth. The Company has also expanded its reach with the addition of 16 new accounts and ship-to locations. Internationally, the Daawat brand has gained prominence in the premium segment, experiencing a 44% increase over the prior year, while South Indian rice sales have surged by 80% with an expanded product portfolio.

In Canada, LT Foods has experienced substantial growth with Walmarts private label Basmati and the 817 Elephant Brand, which have recorded a 59% increase over the prior year. Considering the current economic climate, LT Foods Americas has implemented well-thought-out measures to mitigate emerging risks. The Companys robust global capabilities, including strategic import sourcing and ocean freight negotiations, enable it to maintain competitive pricing in the market. LT Foods remains committed to product innovation while staying true to the Royal brand. Overall, the outlook for LT Foods Americas is promising, with a focus on digital transformation, organisational efficiency and the integration of environmental, social and governance (ESG) principles throughout the organisation.

European Region

LT Foods has a strong foothold in the EU market, commanding 30% volume share of the total Basmati rice consumption. While its overall share of rice consumption in Europe is currently at 3%, the Company has ambitious plans to expand its business by increasing its brand presence across the continent. To further drive growth, LT Foods intends to enhance its manufacturing base in the UK and strengthen the business in UK.


Of total revenue was contributed by European region


Y-o-Y Growth

The Company has also been proactive in product innovation, launching new offerings such as Biryani Kits and having other products lined up, including Cuppa Rice. These additions aim to cater to the evolving preferences of European consumers and further increase LT Foods market share. In Europe, LT Foods has strategically tapped into various distribution channels. The region has a well-organised food service segment, along with ethnic food distributors serving independent restaurants. Additionally, LT Foods supplies Basmati rice to large food companies and manufacturers that require rice for their food manufacturing processes.

Moreover, the emergence of online recipe subscription models, led by companies such as Hellofresh and Gusto, has created new opportunities for LT Foods. Despite the recent spike in food prices, the demand for rice, including Basmati rice, has not witnessed any significant decline. LT Foods closely monitors the situation, noting that retailers may experience a lag in passing on price increases to end consumers. However, the Company believes that the demand for Basmati rice will remain stable as the relative prices of other food products have also gone up.

Logistics costs, which escalated in 2022, have now returned to pre-pandemic levels, benefiting LT Foods operations in Europe.

Overall, LT Foods remains optimistic about its business prospects in Europe, with plans for expansion, increased market presence and strengthened partnerships across various distribution channels, while continuing to adapt to market dynamics and cater to changing consumer preferences.

Middle East Region

The Middle East is one of the leading consumers of Basmati rice globally. In the Middle East, LT Foods operates through its subsidiary, LT Foods DMCC. The Company has a wide presence in this region and offers various products that meet the diverse culinary preferences of Middle Eastern consumers. It has also been expanding its business in the region.

LT Foods experienced positive growth in FY 2022-23, with 16% increase Y-o-Y.

LT Foods is investing in targeted retail channels, distribution networks and brand awareness for maintaining and further expanding its presence in the region.

The Company has introduced new SKUs to bridge the range gap, ensuring a comprehensive product offering that caters to a wide consumer base. Additionally, the expansion of order volume has including Daawat SKUs across a larger fleet of vehicles that has led to increased market reach and accessibility. To further widen its reach, LT Foods has appointed new distributors in countries such as Oman (OMN) and Bahrain (BHR), where its brands were previously not represented, enabling greater distribution and availability. In the United Arab Emirates (UAE), the Company has focused on geographical expansion for its sales and distribution operations. LT Foods has continued its aggressive expansion into the e-commerce space, achieving remarkable 50% year-on-year growth in the channel. This success can be attributed to increased visibility across e-commerce platforms and engagement with e-commerce retailers to provide consumers with compelling value offerings tailored to their needs. With a market share of 45% in the e-commerce channels, LT Foods has positioned itself as a leader, contributing 20% to the overall business.

To strengthen its position in the Middle East and establish a strong presence in the Basmati rice category with its Daawat and Devaaya offerings, LT Foods has developed well-defined strategies and priorities. In the UAE, the Company aims to expand its consumer base in the sales and distribution segment and achieve geographic expansion. Additionally, LT Foods is focused on driving the growth of mid-price Basmati sales across various channel segments in the UAE. Building brand equity for Devaaya and Daawat while creating differentiation is another key objective. Moreover, the Company aspires to maintain its current consumer base and further expand it among high-value audiences. Through targeted activities and an appropriate product range, LT Foods is actively facilitating household penetration, ensuring that its brands resonate with consumers and meet their specific needs in the Middle East region.

Rest of the world

In the rest of the world, the Company remains focused on strengthening its distribution network and expanding product penetration across various countries. By strategically targeting new markets and optimizing existing distribution channels, LT Foods strives to achieve a distribution coverage of 100% Basmati consuming countries. To tap into the lucrative HoReCa (Hotels, Restaurants, and Catering) segment, LT Foods will ramp up its efforts to secure more distribution partnerships.

In 2022-2023, the rest of the world comprising The Far East, Israel, Mauritius, Fiji, Australia, Singapore, Maldives, Hong Kong and New Zealand have grown by 34% and 6% of total revenue was contributed by Rest of the world. An increase in the number of immigrants during 2022-2023 to these countries has contributed to the Company growth. Additionally, mainstream consumers increasingly prefer international cuisines, increasing the demand for Basmati rice. Our significant on-shelves presence has been a major growth driver. Growth of e-commerce and online retail across geographies has helped provide easy access to Daawat Basmati for consumers. Introduction of value-added Basmati rice products such as Biryani Kit and Cuppa Rice can cater to the evolving taste and preferences of consumers. We have introduced our value-added products in Australia, Singapore, Maldives, Hong Kong, Fiji and New Zealand.

Growth enablers

Digital transformation

At LT Foods, digital transformation is a top priority and the Company intends to implement the same in the upcoming years as part of its global digital transformation programme. By leveraging digital technologies and data-driven strategies, LT Foods aims to achieve greater efficiency, agility and innovation across its entire value chain.

In terms of operations, LT Foods has implemented automation and digitisation to streamline its procurement, supply chain, production processes and inventory management. This enables real-time monitoring, predictive analytics and optimisation of resources, leading to improved operational efficiency, cost savings and informed decision-making. The Company has substantially invested in e-commerce platforms, mobile applications and online marketplaces to provide a seamless and convenient purchasing experience for its consumers. These digital channels enable personalised recommendations, easy ordering and efficient delivery, enhancing consumer satisfaction and loyalty.

Cybersecurity and data protection will be critical concerns for LT Foods during its digital transformation. The Company ensures the implementation of robust security measures, data encryption and compliance with relevant regulations to safeguard its digital infrastructure and consumer information.

Food safety and quality

LT Foods adheres to international food safety standards and regulations. It follows strict hygiene practices at all phases of production, including raw material procurement, processing, packaging and distribution. The Company maintains a comprehensive quality management system to track and oversee every aspect of its operations. As part of its endeavour to shape a cleaner and safer future, the Company advises the farming community to leverage green chemistry, biomolecules and bio-inoculants. It also strives hard to implement integrated pest management (IPM) and integrated nutrition management (INM) employing various green molecules, nanotechnology and organically grown products. These molecules boost soil health, lower water, air and soil pollution and simultaneously produce crops with no chemical residue. The LT protocol also analyses Basmati paddy and rice for pesticide residues, heavy metals, mycotoxins, and various microbiological parameters, as well as for the best organoleptic sensory and cooking attributes, using robust physico-chemical analysis.

All analyses are based on a high-end scientific approach, where the Assurance Lab analyses the major food contaminants at the Companys world-class facility setup at the Bahalgarh unit in accordance with ISO 17025, ILAC MRA (International Laboratory Accreditation Cooperation-Mutual Recognition Arrangement) and accreditations from NABL (National Accreditation Board for Testing and Calibration Laboratories), EIC (Export Inspection Council), APEDA (Agricultural and Processed Food Products Export Development Authority) and FSSAI (Food Safety and Standards Authority of India). The Centre for Excellence has also received the prestigious ILAC-MRA accreditation, which enables the laboratory to expand its operations internationally in all those countries where ILAC-MRA is registered. Working with National Measurement Institute - United Kingdom, commonly known as Laboratory of the Government Chemist, the laboratory ensures the highest level of traceability by participating in several proficiency testing programmes and obtaining all its certified reference materials from the international organisation, which are in compliance with ISO 17034:2016.

Human Resource Transformation

LT Foods is responsible for keeping track of multiple facets of the organisations human resource management. The Company focuses on identifying, developing, and managing high-potential personnel to meet the requirements of creating tomorrows leaders and promoting its Succession Planning strategy. Succession planning ensures that the organisation has a consistent supply of internal talent for critical positions. Through its Campus to Corporate programme, the Company lays the foundation for hiring fresh talent into the organisation. The Company also collaborates with leading businesses and premier engineering institutions to recruit Management and Engineering trainees, which enhances employer branding among potential employees.

During FY 2022-23, the Performance Management System was evaluated and improved to make it more objective. Goal alignment, meritocracy and differentiation, a culture of continual feedback, a focus on potential and performance, and strong governance are among the core pillars of the new PMS design. Training and awareness sessions are being conducted for its 2,228 personnel across all geographies under the new PMS framework. The new PMS is expected to foster accountability and ownership while also promoting role clarity.


The Companys value system prioritises giving back to society in various ways. It has integrated the ESG framework into its operating framework and has continuously made efforts to attain its ESG goals. The Company is dedicated to ethical sourcing and harvesting, as well as working to enhance farmers quality of life by empowering them to adopt sustainable farming methods that protect the environment for future generations.

The Company promotes environmental stewardship by implementing well-thought-out and precise measures to reduce its carbon footprint, conserve water resources and minimise waste generation. LT Foods also emphasises social responsibility, striving to make a positive change within local communities through initiatives focused on education, healthcare and livelihood improvement. Across all its operations, the Company adheres to the highest standards of corporate governance, ensuring transparency, accountability and ethical conduct. By incorporating ESG into its operations, LT Foods stays true to its commitment to driving long-term sustainability and responsible business growth.

Risk Management

Please refer page 30 of the Business Section for details on the Risks and Concerns pertaining to the business alongwith their mitigation plan.

Financial overview

During the year, with a 28% rise in revenue and a robust balance sheet the Company remains on track to achieve all its strategic pillars, namely growth, margin expansion and financial metrics improvement. Along with this, Basmati and other speciality rice revenues increased by 31%, organic food and ingredient revenues grew by 11% and the convenience and health sector surged by 36%. The Convenience and Health category proceeds c.2.5% of the total revenue. Gross profit increased by 31% from H 1,836 Crore to H 2,401 Crore, with margins remaining at 34.4%. In FY 2022-23, EBITDA increased by 20% to H 744 Crore from H 620 Crore. PAT increased by 37% to H 423 Crore from H 309 Crore. Earnings per share were H 12.50, up 37% year-on-year.

Standalone financial performance

Particulars FY 2022-23 FY 2021-22 Y-o-Y growth
Revenue 3,951 2,864 38%
*URVV_SUR W 931 660 41%
EBITDA 264 204 29%
EBIT 235 172 36%
PBT 211 149 42%
PAT 160 112 43%
EPS 4.98 3.5 42%
&DVK_3UR W 189 145 31%
Net Worth 1,567 1,044 50%

Consolidated financial performance

Particulars FY 2022-23 FY 2021-22 Y-o-Y growth
Revenue 6,979 5,451 28%
*URVV_SUR W 2,401 1,836 31%
EBITDA 744 620 20%
EBIT 617 497 24%
PBT 563 424 33%
PAT 423 309 37%
EPS 12.50 9.13 37%
&DVK_3UR W 550 432 27%
Net Worth 2,797 2,149 30%

Key ratios

Ratios FY 2022-23 FY 2021-22
Debtor (no. of days) 35 41
Inventory turnover (no. of days) 245 238
Interest coverage ratio (in times) 7.5 7.2
Current ratio (in times) 2.0 1.8
Debt Equity Ratio (in times) 0.3 0.5
Operating profit Margin (in %) 10.7 11.4
Net operating margin (in %) 6.06 5.7
Return on Net Worth (in %)* 18.4 15.3
*Due to increase in profit margin


During the year the Company has witnessed robust growth in Basmati and other speciality rice revenue by 31%, while organic food and ingredients revenue grew by 11% and the convenience and health sector by 36%.

Going forward, the Company plans on expanding its presence in both domestic and international markets. It has established a strong distribution network and expanded its product offerings to reach a wider consumer base. Additionally, it has entered into strategic partnerships and collaborations to penetrate new markets and gain market share.

LT Foods has introduced new rice varieties, organic products, ready-to-eat meals and speciality grains to meet evolving consumer demands. This strategy has helped the Company tap into new consumer segments and drive sustained growth.

In the next few years, the Company will focus on emerging markets owing to growing demand for Basmati rice and speciality food offerings in America, Europe and the Middle East. By leveraging its strong brand recall and distribution network, the Company will be able to successfully enter new markets and widen its geographic footprint. The Company prioritises building a sustainable business on the back of its growth enablers, such as digitalisation, enhanced food safety and quality, human resource transformation and ESG initiatives. We continue our work on our three core strategic pillars: Growth, Margin Expansion and Strengthen Financial Metrics. 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 regionsand 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. 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. 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.

Governance and audit

The Company is dedicated to upholding the highest standards of integrity, transparency and accountability to win the confidence of consumers, shareholders, employees, suppliers, distributors, the local community and other stakeholders. The Company is aware of the significance of maintaining a strong corporate governance model and consistent efforts are made to achieve this goal.

Internal control systems and their adequacy

Internal controls and procedures at LT Foods are well-established and in line with the scale and nature of the Companys operations. To ensure that established procedures are followed, the Company regularly conducts internal audits of its operations, facilities and stockyards. Internal audit reports are examined by the Audit Committee which also evaluates the efficiency of the internal control systems. The Committee may then recommend to the Board of Directors that adjustments be made to the Companys internal controls, business procedures and management systems. Internal auditors may suggest changes for the Companys internal team to work on. The creation of annual internal audit plans is a joint effort between our internal auditors and the Audit Committee.

Cautionary Statement

Statements in this Management Discussion and Analysis report describing the Companys objectives, projections, estimates, expectations, or predictions may be considered ‘forward-looking statements under applicable laws and regulations. These assertions are based on certain assumptions and projections of future events. Because the Companys operations are influenced by many external and internal factors beyond its control, actual results may differ materially from those expressed or implied. The Company makes no commitment to publicly amend, modify, or revise any forward-looking statements in light of subsequent developments, information or events. Readers should be aware that the risks described here are not exhaustive. Readers are encouraged to use their best judgement when assessing the risks associated with the Company.