LT Foods expands its range of organic products; to take advantage of major health trends that have emerged during the pandemic
“India is moving towards megatrends in fitness with consumers embracing healthy lifestyles and mindful eating. Consumers are now concerned about where their food comes from and its impact on their health,” the director said. general of LT Foods, Ashwani Arora.
The new launch will augment LT Foods’ existing brand franchise, which includes Daawat, Royal, Kari Kari and Royal.
Arora said the company plans to aggressively expand this business and has partnered with more than 60,000 organic farmers for the venture. Industry estimates peg the domestic organic food market at Rs 3,000 crore, growing by 15-20%. Globally, this market is expected to grow by 8-9%.
Listed LT Foods reported consolidated revenue of Rs 2,439 crore, up 24% year-on-year, for the period April to September 2020, and an increase in gross margin by 32% to Rs 710 crore. The company said that in line with its strategic pillars of growth and margin expansion, it was able to reduce its debt to Rs 1,124 crore.
“We have seen a significant increase in home consumption during the pandemic months. With hotels and restaurant chains in lockdown mode, we have seen a significant addition of new households to the consumer base, and given the safety and health concerns. We have also seen a shift to branded and packaged foods,” Arora said.
In the previous financial year, LT Foods’ organic revenue stood at Rs 367 crore, contributing 9% of the company’s overall revenue. The organic product portfolio will include grocery staples including flours, broken wheat, spices and lentil rice, and will be rolled out in e-commerce and modern niche retail outlets, said the society.
“We believe that some of the new consumer trends that have emerged during the pandemic phase are permanent. Consumers will continue to demonstrate an increased affinity for hygienically produced packaged food products,” said Monika Jaggia, Vice President of Finance and Strategy, LT Foods.
The company said its specialty rice categories, led by flagship brands Daawat and Royal, grew 20% and sales through e-commerce platforms increased 114% in the first two quarters of the year. practice. New products, including fortified rice, stir-fry sauces and ready-to-heat products under the health and convenience franchise, saw revenue growth of 69%, the company said.
LT, which has distribution subsidiaries in the United States and Europe and supplies Walmart and Carrefour, derives its largest overseas volumes from Europe and the United States.
