India’s LT Foods is set to establish a new rice processing facility in its home market, signaling a strategic move in the competitive food and beverage industry.
In a recent stock exchange announcement, the owner of the Royal and Daawat basmati brands revealed that the new facility will be located in Raichur, Karnataka. This development aligns with the company’s objectives to enhance its operational capacity.
The project, which entails an investment of Rs60 million ($670,215), is designed with an initial annual processing capacity of 30,000 metric tonnes. The facility will focus on regional rice varieties including sona masoori, kolam, and lachkari.
Commercial operations at the new site are slated to begin in February, contingent upon the receipt of necessary statutory and regulatory approvals.
In addition to this expansion, LT Foods has experienced robust growth across essential financial metrics. For the second quarter of its 2026 financial year—ending September 30—consolidated revenue reached Rs27.72 billion, representing a significant 30% year-over-year increase.
Furthermore, the company reported a 24% rise in EBITDA to Rs3.16 billion. Profit after tax for the quarter stood at Rs1.64 billion, marking a 9% increase compared to the same quarter last year.
In the first half, LT Foods achieved revenues of Rs52.73 billion, a 25% improvement over the corresponding period from the previous financial year. The EBITDA for this six-month period reached Rs6.19 billion, reflecting a 20% increase year-over-year, while PAT for this timeframe rose to Rs3.32 billion, also up by 9% compared to the previous year.
Moreover, in October, LT Foods announced their intention to acquire 100% of Global Green Europe, a Hungary-based supplier of shelf-stable fruits and vegetables. This strategic acquisition aims to bolster its ready-to-heat and ready-to-eat offerings, reinforcing its position in the evolving food and drink business.
Operating manufacturing facilities in Europe, specifically in the Netherlands and the UK, LT Foods plans to leverage Global Green’s established presence, which has been in operation since 2006. With two plants on 45 acres in Hungary, the company serves over 30 markets across Europe, providing products such as canned sweet corn, jarred gherkins, silver skin onions, peas, and sour cherries.
In conclusion, LT Foods is poised to capitalize on the latest food and drink consumer trends, enhancing its operational capacity while maintaining a focus on quality and regional products. As they continue to grow and diversify, their strategy underscores their commitment to remaining a key player in the food and beverage industry.
