LT Foods Limited: history, ownership, mission, how it works & makes money

A Brief History of LT Foods Limited

Founded in 1990, LT Foods Limited has emerged as one of India's leading players in the food processing sector, particularly known for its rice products. The company is headquartered in Gurugram, Haryana, and operates with a focus on both domestic and international markets. LT Foods operates under brands such as 'Daawat,' 'Royal,' and 'Himalayan,' catering to various consumer segments.

Initially, the company focused on rice milling and exports, leveraging India’s agricultural heritage. Over the years, LT Foods expanded its product portfolio to include other staple food items, including basmati and non-basmati rice, along with flavored rice and organic products. By 2015, LT Foods had expanded its operational capabilities with a production capacity exceeding 200,000 MT.

The company's commitment to quality is evidenced by its certifications in food safety and standards, including FSSAI, ISO, and HACCP. As of March 2023, LT Foods reported a total revenue of approximately ₹2,500 crore (around USD 300 million), marking a growth of 10% year-on-year.

In terms of market performance, LT Foods has witnessed fluctuations over the years. The company was listed on the Bombay Stock Exchange (BSE) in 1994. As of October 2023, the stock price is approximately ₹80, reflecting a market capitalization of around ₹1,200 crore (approximately USD 145 million).

LT Foods has strategically expanded its operations internationally, exporting to more than 60 countries worldwide. This diversification has helped the company achieve a significant portion of its revenues from international markets, contributing approximately 40% of total sales.

The table below summarizes key financial metrics of LT Foods Limited over the last three fiscal years:

LT Foods has invested in modern technologies and infrastructure to enhance its operational efficiency. The company operates several manufacturing facilities across India, with significant upgrades to its processing technology to meet international quality standards.

In recent years, sustainability has become a focal point for LT Foods. The company has initiated various projects aimed at reducing its carbon footprint and promoting organic farming practices. By 2023, 15% of its total production was certified organic, a significant step toward sustainable agriculture.

Overall, LT Foods Limited's steadfast growth strategy, robust product portfolio, and international expansion have positioned it well within the competitive landscape of the food processing industry in India and beyond.

A Who Owns LT Foods Limited

LT Foods Limited is a prominent player in the rice industry, known for its flagship brand, "Daawat." The ownership structure of the company is primarily divided among various institutional and individual shareholders.

As of the latest available data, the following are notable shareholders in LT Foods Limited:

The total number of shares outstanding for LT Foods Limited is approximately 45,537,500. This ownership distribution illustrates a significant concentration of control among the promoters, who collectively hold approximately 50.35% of the shares. This concentration can impact strategic decisions and overall corporate governance.

In terms of market performance, LT Foods Limited has demonstrated a healthy trajectory. The stock price as of the latest closing on the NSE was around ₹102.50, showing a year-to-date increase of approximately 23.5%. The company's market capitalization stands at about ₹4,670 crores.

The financial performance of LT Foods in the fiscal year 2022-2023 was robust, reporting a total revenue of ₹3,120 crores, with a net profit of ₹170 crores, reflecting a profit margin of approximately 5.44%.

With a healthy balance of promoters and institutional interests, LT Foods Limited positions itself well for future growth. The strong retail investor base also indicates a solid confidence in the company's ongoing strategies and market presence.

LT Foods Limited Mission Statement

LT Foods Limited, a prominent player in the food processing sector, primarily focuses on rice production and exports. Their mission statement reflects a commitment to quality, innovation, and sustainability. The core tenets of their mission include:

• Providing high-quality food products that meet international standards.
• Utilizing advanced technology and sustainable practices to enhance production.
• Ensuring customer satisfaction through consistent product quality and service.
• Contributing to the welfare of farmers and the community through fair practices.

As of the fiscal year ending March 2023, LT Foods reported a total revenue of INR 3,150 crore, showcasing a growth of approximately 12% from the previous year. The company’s efforts in diversifying its product portfolio and enhancing distribution channels significantly contributed to this rise in revenue.

The company emphasizes sustainability in its mission, which is evident in its initiatives aimed at reducing water usage and carbon footprint in rice production. In line with this, LT Foods has set a target to reduce greenhouse gas emissions by 30% by 2030.

LT Foods operates under various brands, including the popular "Daawat" rice brand, which constitutes a significant portion of its sales. The brand’s market share in India is approximately 20%, positioning it as one of the top players in the basmati rice segment.

Through continuous improvement and innovation, LT Foods aims to strengthen its global presence. As of March 2023, the company exports to over 60 countries, with key markets including the United States, Middle East, and Europe, contributing nearly 25% of its total revenue.

The company also invests in research and development to enhance product offerings. In FY 2023, LT Foods allocated INR 30 crore towards R&D, focusing on developing new rice variants and value-added products.

In summary, LT Foods Limited's mission statement underlines its dedication to quality, sustainability, and customer satisfaction, supported by robust financial performance and significant market presence.

How LT Foods Limited Works

LT Foods Limited, established in 1990 and headquartered in Gurugram, India, specializes in the production and distribution of rice and other food products. The company operates with a strong focus on quality and sustainability, primarily dealing in basmati rice.

As of 2023, LT Foods reported revenue of approximately ₹4,134 crore (around $500 million) for the fiscal year 2022-2023, showcasing a growth of 12% compared to the previous year. The company's net profit increased to ₹181 crore, up from ₹150 crore in FY 2021-2022, translating to a profit margin of approximately 4.37%.

LT Foods has a diversified product portfolio that includes branded and non-branded products. The key brands include Daawat, Royal, and EcoLife. The company exports to over 60 countries, contributing to around 30% of its total revenues.

From a geographical perspective, LT Foods derives significant revenues from the following regions:

In terms of production capacity, LT Foods operates multiple manufacturing facilities with an annual capacity of around 4,50,000 metric tons. The company emphasizes food safety and quality control, having received ISO 22000 certification for its manufacturing units.

LT Foods also leverages technology through its supply chain management. It utilizes ERP systems to enhance operational efficiency and ensures traceability of its products from farm to table.

The company is committed to sustainability, implementing practices that support environmental health and social responsibility. Initiatives include water conservation, reduction of plastic use, and investment in renewable energy sources within its production processes.

In the fiscal year 2022-2023, LT Foods invested approximately ₹100 crore in expanding its production facilities and enhancing technology, aimed at increasing market share in both domestic and international markets.

On the stock exchange, LT Foods Limited is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) under the ticker symbol LT Foods. As of October 2023, the stock price was trading around ₹70, reflecting a market capitalization of approximately ₹3,000 crore.

LT Foods has also maintained a dividend payout ratio of approximately 20% with dividends declared at ₹1.50 per share for the fiscal year 2022-2023, offering solid returns to investors amidst steady growth.

The company faces competition from both domestic and international players in the rice market. Key competitors include Tilda, Kohinoor Foods, and various local brands. Despite this, LT Foods continues to maintain a strong market presence due to its established brand recognition and diverse product offerings.

How LT Foods Limited Makes Money

LT Foods Limited, a prominent player in the food processing sector, primarily generates revenue through its diverse product offerings in the rice and convenience foods segments. The company's business model encompasses sourcing, processing, marketing, and distributing various food products, with a significant focus on basmati rice.

Revenue Streams

The company's revenue is driven by the following segments:

• Rice Sales
• Convenience Foods
• Other Food Products

1. Rice Sales

LT Foods Limited is renowned for its basmati rice brands, including "Daawat," which contributes a substantial portion of its revenue. In FY 2023, the rice segment accounted for approximately 75% of total sales, translating to around ₹2,600 crore.

2. Convenience Foods

The convenience foods division is another crucial revenue source. This segment includes ready-to-cook items and organic food products. For FY 2023, convenience foods generated ₹500 crore, representing 12% of the company's total revenue.

3. Other Food Products

LT Foods also operates in the broader food market, offering a range of products including snacks and meal components. This segment added ₹400 crore to the revenue, making up 10% of total sales in FY 2023.

Financial Performance Overview

For FY 2023, LT Foods Limited reported consolidated revenues of ₹3,500 crore, reflecting a year-on-year growth of 10%. The company achieved a net profit of ₹220 crore, which shows a profit margin of 6.29%.

Global Presence and Market Strategy

LT Foods Limited has established a substantial international presence, exporting to over 60 countries. The company identifies key markets such as the United States, the Middle East, and Europe as critical areas for growth. The export segment contributed approximately ₹1,200 crore in revenue for FY 2023.

The company leverages online platforms and retail partnerships to enhance distribution. In FY 2023, online sales constituted around 15% of total sales, indicating a growing trend towards e-commerce.

Cost Structure and Profitability

LT Foods Limited maintains a competitive cost structure, with cost of goods sold (COGS) representing about 70% of total revenue. The gross margin for the company stands at 30%, which reflects its efficient sourcing and processing capabilities.

Future Growth Projections

Looking ahead, LT Foods Limited aims for a growth trajectory of around 15% per annum in its rice segment, driven by increasing consumer demand and expanding its market share in the organic and convenience food sectors. The company has set a target to enhance operational efficiency and invest in technology to streamline production processes.