As part of its diversification strategy, LT Foods Ltd, which owns the Daawat brand of basmati rice, is entering the packaged wheat atta (flour) segment. Recently, the company launched packaged atta under the Royal brand in the US market.
“We expect to launch packaged atta under the Devaaya brand soon,” said Ashwani Arora, Joint Managing Director, LT Foods. However, he did not quantify the investment plans and the expected timeline for the company’s entry in the domestic market.
LT Foods has set up a 40,000 tonne flour mill in Bhopal, from where it is exporting to the US market.
TO OUTSOURCE MILLING
“We are looking to outsource milling both in the North and South as part our diversification strategy,” Arora said. The company expects to leverage its 450-dealer network to enter the atta market.
Brands such as Ashirwaad from ITC and Pillsbury from the Minneapolis-based General Mills dominate the packaged atta market in India, which is growing at 10-15 per cent annually and is estimated at over Rs 3,000 crore.
Recently, Cargill re-entered the atta market with its Nature Fresh brand. Arora said the company’s branded business of basmati rice was doing pretty well both in the domestic and international markets. LT Foods is among the top three basmati exporters from India.
The company expects its 2012-13 earnings to be around Rs 2,200 crore, some 40 per cent growth over the previous year, said Anil Khandelwal, Director-Finance and Strategy.