LT Foods Expands Into UK Market With State-Of-The-Art Facility

On July 11, 2024, LT Foods, a 70-year-old global FMCG company from India, announced via a stock exchange filing that it had opened a new, advanced facility in the United Kingdom. This facility, located in Harlow and covering 100,000 square feet, aims to transform the UK’s rice market by providing high-quality rice and rice-based products. It will use the latest technology to ensure premium quality.

Details of the New Facility

LT Foods’ new facility will produce branded and private-label products to cater to various consumer needs. The UK rice and rice-based food market is valued at around £1 billion. To tap into this market, LT Foods has invested £7 million initially, with plans to invest up to £50 million more in the future. They expect annual revenue to reach £50 million in the next two years and aim for £100 million within five years. The facility will also create jobs for local residents.

Currently, LT Foods has partnered with 4 major UK retailers and plans to expand further. The new facility has a production capacity of 60,000 tonnes of rice per year, positioning the company for significant growth in the coming years.

About LT Foods

LT Foods Ltd is a major global FMCG company of Indian origin specialising in consumer foods. Operating in more than 80 countries, including India, the Middle East, Europe, the U.S., and the Far East, LT Foods is known for delivering high-quality and delicious food. Its flagship brands include DAAWAT®, a beloved Basmati brand in India, and Royal®, the leading Basmati brand in North America. As of FY’24, LT Foods’ consolidated revenue was around ₹7,822 crore, growing at a 5-year revenue CAGR of 17% and a PAT CAGR of 32%.

On July 12, 2024, the share price of LT Foods Ltd opened at ₹295.00, touching the day’s low at ₹290.00, as of 09:38 AM on the NSE.

Financial Highlights

LT Foods reported its standalone quarterly results for March 2024, showing net sales of ₹966.63 crore, a 4.12% increase from ₹928.35 crore in March 2023. However, the company’s quarterly net profit declined by 35.18%, falling to ₹39.98 crore from ₹61.68 crore in the same period last year. Additionally, EBITDA decreased by 22.16%, reaching ₹71.02 crore compared to ₹91.24 crore in March 2023. The earnings per share (EPS) also dropped to ₹1.15 from ₹1.87 in March 2023.

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