LT Foods, which owns the popular basmati rice brand Dawaat, expects to maintain a 10 per cent compounded annual growth rate for the next five years, taking the company’s turnover to Rs 11,500 crore.

Ritesh Arora, CEO of India and Far East business of LT Foods, said the company would benefit from expansion of the consumer base led by growing purchasing power in the country and a shift from non-branded to branded products.

LT Foods is also banking on value added products which come with higher margins to contribute more significantly by then.

“We started this initiative a couple of years ago. Today, ready-to-eat or ready-to-cook contribute around 2.5 per cent of our revenues. We are focusing on this segment and growing this,” Arora said,adding that he expects the revenue contribution from this segment to touch 10 per cent in five years.

The consolidated revenue of LT Foods, which earns about 60 per cent of it from exports, stood at Rs 6,979 crore in FY23. Arora said the company expects India business growth to outpace exports going forward.

According to an AC Nielsen report, LT Foods has close to a 30 per cent market share in the retail segment (pack size of 1-10 KG). This segment contributes 70 per cent of the revenue for LT Foods.

Arora said the company would look for acquisitions opportunities in both the domestic and international market. Recently it acquired a 51 per cent stake in a company with a jasmine rice portfolio.