LT Foods Deepens Multi-category Play To Sustain Double-digit Growth: Ashwani Aro ...
LT Foods is expanding beyond its core basmati and other specialty rice business and sharpening its premium and value-added food portfolio to sustain double-digit growth, as changing consumer habits drive demand for convenience-led and higher-value offerings. Ashwani Arora, Managing Director and Chief Executive Officer, LT Foods said that the company is scaling categories with products such as biryani kits, ready-to-consume rice, organic products and snacks alongside its core products.In an interaction with BW Businessworld, Arora said that the company is growing at 14% Revenue CAGR for the past 10 years, ahead of the global basmati category growth of 7–8 per cent, supported by premiumisation, wider distribution and stronger digital adoption. The company currently reaches over 2,00,000 general trade outlets in India and expects value-added products, which contribute around 2 per cent of revenue today, to rise to 4 to 5 per cent over time.
Scaling Daawat And Value-added Segments
Arora said that the company is increasingly widening Daawat beyond core basmati rice as it looks to sustain its double-digit growth momentum through distribution gains and new product additions. Arora noted that the flagship brand, which has penetrated around 6.4 million households, continues to grow at nearly 15 per cent year-on-year.
“The growth levers are to increase the distribution and invest behind the brand and launching more product in Daawat,” he said, adding that the company is strengthening the portfolio through Daawat Regional Rice, Daawat Biryani Kit and Daawat Cuppa Rice.
The strategy comes as basmati and other speciality rice contributed 88 per cent to company’s revenue in FY26 and clocked Rs 9,742 crore in revenue.The category saw 12 per cent volume growth in FY26, with gross margins of 33.9 per cent.
Beyond branded rice, LT Foods is also scaling its organic foods and ingredients business, which has already crossed the Rs 1,000 crore revenue mark with 12 per cent revenue CAGR over last five years. “We are in this business for more than 30 years,” Arora said, adding that the company has expanded globally not only in its core basmati and other specialty rice segment, but also in Organic Foods & Ingredients segment through Nature Bio Foods in Europe and the US to stay “more closer to the customer and more fast service level.”
At the same time, LT Foods is looking to materially increase the contribution of its value-added portfolio, including ready-to-cook (RTC), ready-to-eat (RTE), organics and convenience-led offerings, from the current 2 per cent of revenue to 4 to 5 per cent over time. “The goal is to make it 4 to 5 per cent of our total revenue,” Arora said, signalling a sharper focus on higher-value categories to supplement the core rice business.
Global Priorities, Revenue Ambitions Amid Challenges
Arora added that the company is sharpening its focus on key international markets even as India remains a major growth engine. Arora added the company, which is present in over 85 countries, continues to see strong momentum in the US, where it commands over 50 per cent market share in basmati rice, alongside India, the UK, Europe and the Middle East.
“For us the focus market are of course India, USA, UK, Europe and the Middle East,” he said, adding that LT Foods has strengthened its overseas footprint through manufacturing facilities in the UK and the Netherlands to improve market access and servicing.
The global diversification has helped LT Foods balance market cycles and maintain growth despite volatility in input costs. Addressing concerns around raw material inflation flagged earlier, Arora said the company’s four-decade operating history has helped it navigate commodity swings while protecting profitability.“Whenever the price increase happen… historically, we have been able to pass on to the consumer and protect our margin,” he said.
In FY26, LT Foods continued its strong growth trajectory, with consolidated total revenue crossing Rs 11,023 crore, supported by robust momentum across both India and international markets. The company maintained healthy profitability with Ebitda exceeding Rs 1,200 crore.
At the same time, LT Foods is increasingly leaning on digital channels to support brand building and premiumisation. Arora said over 60 per cent of the company’s marketing spends are now digital, reflecting changing consumer discovery patterns and the growing importance of ecommerce-led demand generation.“Marketing mix is more digital,” he said. Looking ahead, LT Foods plans to sustain its outperformance versus the broader market while steadily improving profitability.
Arora said while the global rice category is growing at around high-single digits, LT Foods is currently expanding at nearly 11 to 12 per cent per cent and intends to maintain that pace.“We want to keep growing the pace we have been growing and improve our margin year on year,” he said, signalling continued focus on premiumisation, value-added categories and operating efficiencies.
Focus On Omnichannel As Ecommerce Gains Pace
LT Foods is deepening its omnichannel play as premium rice consumption increasingly shifts towards urban and convenience-led channels. Arora said the company today reaches around 2,00,000 general trade outlets across India and has built a full presence across modern retail and digital platforms.
“We are 100 per cent present on ecommerce, 100 per cent on modern trade and the A-class outlet,” he said, noting the company’s push to widen access for premium staples beyond traditional kirana channels.
The shift is becoming particularly visible in ecommerce and quick commerce, where basmati rice is seeing stronger adoption among urban consumers. Arora said LT Foods commands around 45 to 47 per cent market share in ecommerce, including quick commerce, helped by Daawat’s strong premium positioning.
“Quick commerce is growing very fast in urban,” he said, adding that the distinction between ecommerce and quick commerce is increasingly blurring as platforms offer fulfilment “in 15 minutes and 2 days.” The channel is emerging as an important growth lever for LT Foods, especially as premium food purchases become more convenience-driven.
Premiumisation Broadens Beyond Metro India
As consumers increasingly trade up for quality and branded staples, Arora said that the company is seeing faster growth in premium rice even as it continues to serve mass price points. He explained that premium products are outpacing the broader portfolio, supported by rising disposable incomes and stronger demand in emerging markets.
“The premium segment is growing faster,” he said, adding that the company continues to cater “across all the price points,” while keeping a sharper focus on premiumisation. The trend aligns with LT Foods’ broader branded strategy, with premium basmati continuing to drive growth across India and international markets.
At the same time, changing consumption patterns among younger consumers and nuclear households are reshaping product innovation beyond core rice. Arora said while “Daawat being the centre of plate, it will remain on the centre of plate,” the company is building convenience-led formats around it. Products such as Daawat Biryani Kit, Cuppa Rice and rice crackers developed through a Japanese collaboration are gaining traction, while newer launches such as Daawat Organic Basmati Rice are expanding the premium proposition. The shift also reflects a wider consumer move towards convenience, on-the-go consumption and healthier premium offerings, categories LT Foods is increasingly building into its portfolio.
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