Dear Stakeholders,
Food has always played an important role in making people feel
connected and building strong relationships and we take pride in creating products that
add warmth and joy to everyday family meals and social gatherings, creating memorable
experiences. As we present the annual report for the FY 2023-24, it brings us immense
pleasure to reflect back upon our journey
in the year gone by and share with you yet another significant year at
LT Foods.
Our robust performance
FY 2023-24 has been a milestone year for LT Foods, marked by a robust
12%
Y-o-Y revenue growth and an impressive 33% growth in EBITDA, expanded
by 190 bps as compared to the previous year. We have consistently outperformed industry
benchmarks over the years, with an 18-year revenue CAGR of 36% and a PAT CAGR of 26%. Our
innovative products and geography-specific strategies have facilitated diversified growth,
margin expansion and improved operating efficiencies. Simultaneously, premium offerings as
per the evolving consumer trends and strategic investments on the brands for new consumer
acquisition have helped us to stay relevant to our consumers.
Our strategies have allowed us to sail through the challenging
circumstances. While there was persistent geopolitical turmoil, supply chain disruptions
and rising inflation, our proactive financial strategies, industry expertise, operational
excellence, a global distribution network, our portfolio of most-loved brands and prudent
investment strategies have enabled us to sustain our positive growth trajectory.
We have built a legacy founded on values of innovation, integrity,
consumer-centricity, our commitment to excellence, respect for people and responsibility;
as a result this foundation positions us for a future filled with growth, expansion and
exciting opportunities.
Riding the tide
Basmati, renowned for its fragrant aroma, long grains and fluffy
texture, has always been an aspirational product. Driven by growing consumption and
evolving trends, our basmati category has recorded robust growth over the years.
The basmati market in India is growing at a healthy CAGR of 7-8% over
the past decade. Despite this growth, basmati is still only c4% of the total rice consumed
in India, up from about 2.5% a decade ago. This growth can be attributed to a variety of
factors, especially a rise in per capita income, resulting in more Basmati consumption.
This has also steadily increased basmati consumption among current non-basmati consuming
homes.
In addition to this, the industry is observing a paradigm shift towards
packaged and branded offering from loose and unbranded basmati packets.
It is further anticipated that with the Government encouraging
consumer- oriented approach and food safety-oriented policies such as GST Rate
Equalisation,
FSSAI notification on Basmati Standards, it will further encourage
consumers to avail consistent value offered by the established brands.
Delivering goodness worldwide
Our diversified portfolio consists of products that have become
synonymous with quality and excellence. We have consistently developed food brands that
have catered to evolving consumer preferences and have become beloved household brand for
speciality rice.
Our flagship brand, DAAWAT?, has now emerged as one of India's most
loved and consumed Basmati brands, commanding a 30%1 market share and leading
in more than 80 countries. On the other hand, our flagship brand, Royal?, continues to
command more than 50% of the market share in the United States (U.S.) and gained
leadership position in other geographies as well.
We also recorded that the number of households consuming LT Foods
products increased by 10.2% (vs. branded packaged rice growth of 2.8%) to reach 50.22 Lakh
households in India2. Similarly, in the Middle East and Europe, we reported a
growth of 42% and 11%, respectively. Globally, our premium segment grew by 9.7% during the
year under review.
In addition to our established operations in the U.S., Europe and the
Middle East, we also have recently inaugurated a state-of-the-art facility in the United
Kingdom (U.K.), to tap into the growing demand for authentic and premium rice and
rice-based food products.
Synergising innovation and deliciousness
We always cater to consumer's requirements and uphold the highest
standards of excellence and quality.
During the year, we remained focused on understanding the ever-evolving
consumer requirements and providing products that provide convenience to the consumers.
The packaged food industry is witnessing a surge, fuelled by consumers
who are seeking healthier and more convenient cooking options, that can be enjoyed on the
go. This has been especially beneficial for our RTE/
RTC food offerings.
Our 'DAAWAT ?' Quick Cooking Red Rice,' rich in phytonutrients and
fibre, offers multiple health benefits, has received an overwhelming response from
consumers. This product is part of our broader RTE and RTC offerings, which also include
DAAWAT? Quick Cooking Brown Rice, DAAWAT? Quick Cooking Black Rice, DAAWAT?
Cuppa Rice and DAAWAT? Biryani Kit. Additionally, our Kari Kari (Japanese Rice Snacks)
has continued to delight consumers with its unique flavor and quality.
In the US market, our Royal Ready-to-Heat range has also seen
significant growth. Collectively, our RTE and RTC offerings contributed to a 23% Y-o-Y
increase in revenue for FY 2024, amounting to RS 202 Crore.
Leveraging our expansive distribution network
We are witnessing positive trends across the world that are proving to
be beneficial for categorical growth. The increasing immigration of South Asians, Middle
Eastern Arabs and Iranians to regions like the West and Australia is steadily increasing
the demand of basmati across the world. As immigrants are introducing their food to the
mainstream local population, basmati rice is increasingly becoming a staple in mainstream
homes and local cuisines of the host country.
LT Foods has established its foothold in more than 80 countries through
a well- entrenched Distribution Network and Global Supply Chain Hubs, backed by
state-of-the-art, automated and strategically located processing units in India the U.S.,
the UK, Europe and Africa. With the increase in demand for basmati rice across the world,
we believe our robust global network of 1,850+ distributors across the globe will ensure a
consistent supply of our brands across geographies.
Striding towards a digital future
Our digital transformation efforts are a key enabler of future growth,
connecting our global operations and providing real-time in-sight, improved governance,
controls and enhanced operational efficiency.
Our expertise in adopting advanced technologies enables us to assess
market trends and respond more efficiently, ensuring we remain ahead of the curve.
LT Foods takes pride in having a digitally enabled Real-Time Marketing
(RTM) and unique consumer and distributor servicing model through user-friendly digital
interfaces. This distribution model helps us to further accelerate growth and facilitate
newer consumer acquisitions.
Mapping our stepping stones to success
We will continue to strengthen our beloved brands through well-crafted
marketing campaigns designed to engage consumers globally. We believe that this will help
in improving our market share, expanding our geographical footprint and increasing our
market share across geographies. As we continue to grow from strength-to- strength, we
will continue to evolve and adapt to the changing market dynamics and consumer trends.
Our strategic focus will remain on further nurturing our beloved
brands, building a robust supply chain network, expanding global distribution networks,
embracing digitisation and incorporating sustainable practices while investing in global
talent pool; we will continue to strengthen our position as a global FMCG Company in the
consumer food space.
A token of our appreciation
Food is more than sustenance—it is an expression of love, care and
creativity. We recognise the power of food to bring people together. We, therefore,
relentlessly strive to deliver products that synergise rich flavours and culinary
craftsmanship.
We remain resolute in our commitment to going beyond, embracing change,
seizing opportunities, navigating the dynamic landscape and providing exceptional consumer
experience.
Lastly, we would like to extend our heartfelt gratitude to our team
members, shareholders, business partners and key advisors for their unwavering support and
trust in the vision of LT Foods.
Thanks and Regards,
Vijay Kumar Arora
Chairman and Managing Director