India’s largest exporter of processed food products and agro commodities, Allana Group, on Tuesday, announced an acquisition of a 1% stake for ₹20 crore in LT Foods, a company known for its brands, Daawat, Heritage and Royal Rice.
With this collaboration, the companies plan to work on expanding the customer base with the packaged rice company’s consumer products business to focus more on value-added and impulse food products.
The Director of Allanasons, Fauzan Alavi, shedding light on the investment in LT Foods said, “Both the companies have underlying strengths in distribution, production, and marketing of food products. This will give the alliance a superior edge in the market.”
Adding to this, Alavi expressed, “We look forward to working with LT Foods and aim to synergize our strengths to provide our products in the market and explore export markets together to capitalize on our strengths while maintaining the highest standards of quality in procurement, manufacturing and distribution.”
The Allana Group’s portfolio includes brands like London Dairy Ice Cream, Sunny Oil, and Pristine Bakery. While maintaining the highest standards of quality in procurement, manufacturing and distribution, to over 85 countries, the company exports frozen and chilled meat, processed and frozen fruit and vegetable products, coffee, spices and cereals.
Allana Group informed that they are making several strategic investments in both public and private companies they can partner with.
The company’s integrated processing units and cold storages, along with state-of-the-art machinery led it in becoming a multidimensional and multi-product conglomerate.
On the other hand, LT Foods is a household brand in India with rice product names like Daawat, and Heritage. Apart from this, the company owns brands like Royal, Ecolife, Devaaya and Kari Kari, a Japanese premium snack.
On March 22, a press release said that LT Foods has become the world’s first company to be certified with the highest level of verification – L3, by UN-backed Sustainable Rice Platform (SRP) ecolabel.
LT Foods is a trusted brand in four continents and has active customers across 60+ countries including the US, the UK, Europe, West Asia, and the Far East. The company offers a range of organic food products and rice-based sauces and snacks.
Last year in January, LT Foods acquired a 30 per cent stake in Netherland based Leev.nu through its subsidiary Nature Bio Foods BV (NBF B.V.), with an option to acquire a further 21 per cent stake at the end of five years.
At present, The company is eying to end FY21 with revenue of Rs 4,500 crore and an EBITDA (Earnings before interest, taxes, and amortization ) of Rs 600 crore in its income statement.