LT Foods: Making of a billion-dollar outfit
Food is often considered a brisk business, but not everything sells like hot buns. Post-pandemic, consumer behaviour in the food space has undergone a remarkable transformation, with a growing focus on healthier options. The rise of start-ups and delivery platforms like Zomato and Swiggy has further spotlighted this sector, reshaping it into a thriving and dynamic industry.
Amid this evolution, LT Foods, an Indian-origin global, fast-moving consumer goods (FMCG) company in the consumer food space, stands as a beacon of innovation and legacy. Known for its flagship brands like DAAWAT and Royal, the company has spent over 70 years earning its reputation for quality and excellence. With offerings ranging from basmati and other speciality rice, to organic foods and ingredients, to ready-to-heat (RTH) and ready-to-cook (RTC) offerings, LT Foods appeals to diverse demographics worldwide.
What might appear at first glance as a traditional rice business is, in reality, a modern-day story of strategic foresight and innovative execution. Chairman and Managing Director, Vijay Arora aptly describes the company’s journey with the phrase “puraane-chawal hain” – a nod to LT Foods’ deep experience and expertise. Yet, it is this legacy that the company has wielded, blending tradition with transformation to set new benchmarks in the global food industry.
The global basmati rice market is projected to reach $14.7 billion in 2025, with a projected CAGR of 8-12 per cent. India is the largest producer and exporter of basmati rice, with exports reaching 4.6 million tonnes in
FY20-21. The Indian basmati rice market was valued at Rs49,500 crore in 2024 and is expected to reach Rs53,700 crore by 2033. The leading players are KRBL, LT Foods, Kohinoor Foods, Adani Wilmar, and Amira Nature Foods.
LT Foods has achieved many milestones. In July 2024, it unveiled a state-of-the-art facility in Harlow (UK), which marks a major leap in its global expansion strategy. Additionally, the opening of the company’s office in Saudi Arabia in November 2024 solidifies its international footprint. “These advancements reflect LT Foods’ ambitious drive to capture billion-dollar markets while introducing rice and rice-based food offerings to consumers worldwide”, says Vijay, whose LT Foods’ flagship brand, DAAWAT, has become synonymous with quality and is a staple in over 52 lakh households across the nation.
From its humble beginnings as a rice milling enterprise to its position today as a global FMCG company, LT Foods exemplifies relentless ambition and resilience. With consistent year-on-year growth and consolidated revenues reaching Rs8,770 crore in FY25, it is reshaping the future of the food industry. The journey of LT Foods began in the quiet village of Amin Shah, Punjab, bordering India and Pakistan. It was a remote hamlet where the Arora family ran a small grocery store, popularly known as Tek Chand Ji Ki Dukaan. As the years passed, the family’s enterprising spirit only grew stronger. When Lal Chand Arora’s health began to falter, it was his teenage son, Raghunath Arora, who stepped up to shoulder the responsibility. Under his watchful eye, the trade started to evolve – transitioning from a neighborhood store to a larger trading venture that dealt in seeds, dried fruits, and agricultural commodities across borders.
“While we started on a very humble level as a dukaan, there was no dearth of vision or purpose,” says Vijay. “It was this vision, for a life beyond basics, that drove my father into trading commodities. They used their store’s prime location to trade almonds from Afghanistan with other goods.”
By the late 1940s, this small store had become a bustling centre of commerce, attracting farmers from nearby villages. Reflecting on those formative years, Vijay adds: “Our goal was never just to sell food; we aimed to create products that people could trust, offering comfort and quality.” His younger brother Ashwani Kumar Arora, Managing Director and CEO, says: “It was about more than growing a business – it was about building a legacy that would stand the test of time.”
The family’s collective vision soon transformed their small venture into a national brand with global reach. In the 1980s, LT Foods leaped with the establishment of its first rice mill in Bhikhiwind, Punjab. The Green Revolution of the 1970s provided the momentum needed to expand beyond Punjab. “My father started the business, and my brother introduced it globally. We carried forward the values he instilled – ensuring consistent quality and innovating with changing times,” Ashwani recalls.
A cornerstone in this journey was the launch of DAAWAT, a brand synonymous with premium quality basmati rice. It marked a turning point for LT Foods, positioning it as a household name and a respected player globally. “The success of DAAWAT was a turning point for us,” says Vijay. “It gave us the confidence to venture into other segments of the specialty food market.” This inspired a wave of innovation within the company, leading to explorations in specialty foods like organic food and ingredients, RTH, and RTC meals.
Surinder Arora, Managing Director, reflects: “At LT Foods, our focus on quality and sustainability drives every phase of our production. From the initial grain intake to the final packaged product, we employ advanced machinery, such as automated sorting systems, high-efficiency milling machines, and precision grading equipment. These technologies enable us to maintain strict quality control, ensuring that only the finest grains make it through to the production line. Additionally, our investment in energy-efficient processes and real-time monitoring systems allows for optimal resource management, reducing waste and improving overall operational efficiency. With this seamless integration of technology and innovation, we continue to meet the growing demand for high-quality, reliable products that our consumers trust.”
Brothers bonding
The Arora brothers’ bond and determination steered LT Foods through challenges. “The evolution from a small store into a global FMCG powerhouse is nothing short of inspirational,” says Ashok Arora, who oversees the company’s plant operations in Punjab. “The values we imbibed from our roots continue to drive us forward, ensuring our legacy thrives.”
He credits LT Foods' success to a deep commitment to quality, innovation, and strong relationships with farmers and consumers. The lessons learned early on – such as sourcing the finest grains and maintaining consistent quality – have been key to the company’s growth. He adds that staying grounded in their origins gives LT Foods a distinct advantage. “The dedication and entrepreneurial spirit that shaped our beginnings continue to guide us, ensuring that our journey remains sustainable and impactful for future generations.”
The growth of the ‘specialty food market’ has been nothing short of explosive, thanks to a confluence of factors such as rising disposable incomes, evolving consumer tastes, and a growing emphasis on health and wellness. According to Vantage Research, the specialty food ingredients market size is estimated to grow at a CAGR of 5.2 per cent to touch $230 billion by 2030.
A seasoned employee who has been an integral part of the business, Monika C Jaggia, Chief Corporate Development Officer, says: “Over the years, LT Foods has evolved and expanded its presence to over 80 countries through a well-entrenched distribution network and global supply chain hubs, backed by automated state-of-the-art and strategically located processing units in India, the US and Europe, and a robust network of 1,400-plus distributors across the globe. This ensures a consistent supply of our brands across geographies and helps keep our leadership position intact in export markets. Geography-wise, our Route-to-Market (RTM) strategy focuses on increasing the outlets across the globe.”
While solidifying its position further in the core basmati and specialty rice segment, the company continued making inroads in the organic food and RTH & RTC segment. It entered the RTH & RTC segment more than a decade ago by launching DAAWAT Quick Cooking Brown Rice, which has maintained its leadership position to date. “Subsequently, LT Foods introduced several innovative offerings such as DAAWAT Biryani Kit, DAAWAT Cuppa Rice, and in the US Royal Ready to Heat Rice (Microwave Rice), each tailored to meet the unique requirements of our global consumers in the convenience food segment. Adding to the superfood portfolio, it launched DAAWAT Quick Cooking Black Rice and DAAWAT Quick Cooking Red Rice for health enthusiasts. Very recently, it brought global gourmet rice to India with the launch of DAAWAT Jasmine Thai Rice,” adds Monika.
‘Farm to fork’
Ashwani Kumar Arora, CEO, LT Foods, affirms: “Innovation is at the heart of everything we do. We are constantly looking for ways to enhance our products and offer something unique to our consumers.” This commitment to product innovation is matched by the company’s operational excellence, embodied in its integrated ‘Farm to Fork’ model.
Ashwani adds: “We have an integrated ‘Farm to Fork’ model and have a presence across all aspects of the value chain. To establish an integrated business model and stay relevant to consumers, we have made investments across the value chain, including sustainable farming. This enables us to stay competitive in the market by providing the right product at the right place and at the right time.”
LT Foods is transforming its supply chain through advanced digital solutions, ensuring efficiency and precision at every step. With real-time analytics and an artificial intelligence (AI)-powered control tower, the company gains full visibility, enabling quick, data-driven decisions. AI-driven demand forecasting and simulation modelling optimise production and distribution, aligning with market trends. The AI-enabled Distributor Management System (DMS) enhances inventory accuracy, reducing stock-outs and improving collaboration. These innovations have led to a 40 per cent reduction in inventory cover days and a 15-20 per cent improvement in forecast accuracy, reinforcing LT Foods’s commitment to digital excellence and operational growth.
As part of its efforts to stay ahead in an increasingly digital world, LT Foods has embraced digital transformation. This has allowed the company to streamline its operations, enhance supply chain efficiency, and improve consumer engagement. Surinder Kumar Arora, Managing Director of LT Foods, said: “This shift in the digital age has opened up new avenues for growth. Our focus is on improving both machine and people productivity through training and accountability, while better understanding our consumers’ needs.”
“Every challenge presented an opportunity to innovate, refine our processes, and align more closely with the needs of our consumers,” reflects Ashwani. This forward-thinking approach has enabled the company to strengthen its global presence while continuing to deliver value without compromising on quality.
In recent years, LT Foods has also undergone a corporate rebranding to better reflect its evolving identity and long-term goals. The updated brand identity is designed to align more closely with the company’s values of innovation, integrity, and responsibility, fostering a culture of consumer centricity while upholding respect for people.
“Our new identity is not just about a fresh logo; it’s about enhancing and standardising how we communicate our values and connect with our stakeholders,” explains Ashwani.
As LT Foods entered a new phase of growth, the next generation of the Arora family brought their unique perspectives and fresh energy, propelling the company further into the future. With each new addition, the company’s strategic vision expanded, blending time-tested values with modern approaches that embraced innovation, technology, and global outreach.
Ritesh Arora, Chief Executive Officer – India and Far East, LT Foods, has been instrumental in transforming the company’s Indian operations to align with the evolving consumer mindset. Recognising the shifting dynamics of the consumer food market, he has led efforts to capitalise on growth opportunities as Indian households increasingly transition from loose to packaged and branded basmati rice, driven by greater awareness of quality and hygiene. “This trend presents opportunities for us to expand our market share and strengthen our leadership position,” he explains.
Under his stewardship, LT Foods has embraced a digital-first approach, reimagining its marketing strategies to connect with India’s tech-savvy consumers. “With the rapid rise in internet penetration and smartphone usage, we have adopted a digital-first approach, leveraging data-driven insights and targeted campaigns to engage meaningfully with our audience,” says Ritesh, who has also prioritised diversification within the Indian market by expanding LT Foods’ value-added product portfolio. “A few years ago, we began investing in Ready-to-Heat and Ready-to-Cook offerings tailored to Indian consumers. Today, these contribute approximately 2.5 per cent of our revenues and hold significant potential for future growth,” he notes.
Through offerings like packaged basmati rice and innovative RTH and RTC products, LT Foods has catered to evolving consumer preferences. “In the past 12 months, this segment, through new launches and a focused strategy, has grown to a portfolio valued at approximately Rs200 crore. We are confident in its continued growth and acceleration, as we see strong potential for expansion moving forward,” he adds.
Gursajan Arora, CEO – Middle East Business – at LT Foods, has always seen the Middle East as a region full of untapped potential. “The Middle East offers tremendous opportunities, and our focus is not just on expansion, but on establishing LT Foods as a trusted leader here,” Gursajan says.
LT Foods brands – DAAWAT, Hadeel, and Mufaddal – have been an integral part of the Kingdom of Saudi Arabia (KSA) for years. With a strong foothold across the Middle East, the company has expanded its operations in key markets, including the UAE, Kuwait, and Oman. Its flagship brands, DAAWAT and Royal, continue to cater to the region’s growing demand for premium rice and food products.
This year, LT Foods made a strategic move into Saudi Arabia, one of the largest rice-importing nations in the world. The company opened a regional office in Riyadh, marking its official entry into the $2 billion rice and rice-based food market. Gursajan sees Saudi Arabia as a key market with substantial growth opportunities. “By setting up an office in Riyadh, we aim to connect deeply with local consumers, customise our offerings, and solidify our position,” he says. This expansion is part of a broader vision to not only grow the business but also build lasting relationships with the community.
As the company looks to strengthen its presence in the Middle East, it has committed SAR 185 million over the next 5 years to build a strong foothold in the region. This investment will cover warehousing, stock, and manpower, with a targeted revenue of SAR 435 million during this period.
Acquisition to drive growth
Similarly, LT Foods’ expansion into the US market was enabled by the acquisition of the Royal brand in 2007. Today, Royal holds a dominant 55 per cent market share in North America and has quickly become the best-selling basmati rice in the country. By acquiring Royal, the company accelerated its growth and strengthened its position in one of the world’s largest and most competitive markets.
“When we brought Royal into the LT Foods family in 2007, it was not just an acquisition – it was the beginning of a new journey rooted in heritage and driven by purpose. At the time, Royal had a turnover of $35 million, and now, it stands proudly at $400 million. Today, Royal is not just the No 1 basmati brand in North America – it’s a part of countless dinner tables, family traditions, and everyday celebrations across America. This past fiscal year, our growth in North America has been nothing short of extraordinary. We have deepened our reach, introduced innovations that excite a new generation of consumers, and invested in telling our story more meaningfully,” says Abhinav Arora, President – LT Foods America.
“Royal has evolved into more than a product: it’s a bridge between cultures, a tribute to quality, and a beacon of trust. But what makes me most proud is not just the numbers. It’s the people behind this: the teams, the farmers, the families who believe in our purpose. It’s our commitment to sustainability, to doing right by the planet while delivering excellence in every pack. For us at LT Foods Americas, Royal is not just about leading the basmati category – it’s about leading with heart. And the journey ahead is even more exciting,” adds Abhinav.
Separately, to widen its market presence across diverse economies, LT Foods, via its subsidiary, LT Foods Americas Inc (LTFA), acquired a 51 per cent stake in Golden Star Trading Inc, which sells jasmine rice in the US, in 2022. Following this, in May 2025, LT Foods completed the acquisition of the remaining 49 per cent stake in Golden Star Trading Inc.
In 2024, LT Foods inaugurated a facility in the UK. This facility will offer both branded and private-label products to provide diverse options to meet varying consumer demands. The rice and rice-based food market in the UK is worth around £1 billion. To tap into this opportunity, LT Foods has made an initial investment of £8 million in the new facility, with a commitment of further investment of up to £50 million in the coming years.
Speaking about the LT Foods UK facility, Anmol Arora, Director – LT Foods UK, says: “The opening of this new state-of-the-art facility in the UK is a testament to our commitment to meeting the rising demand for high-quality rice products among consumers in the UK. This strategic expansion aligns perfectly with our vision to bring our quality offerings closer to our consumers. The UK market presents a tremendous opportunity for LT Foods to grow and innovate. Our investment here reflects our belief in the UK market’s potential and our dedication to contributing positively to the local economy.”
In 2023, as part of its global expansion strategy, LT Foods inaugurated a new facility for its organic business arm, Nature Bio Foods, in Uganda, Africa. This new facility is part of the company’s broader risk mitigation and diversification strategy aimed at ensuring sustainability and fostering growth. By replicating the India model across various geographies, LT Foods aims to scale its organic business, meeting the surging global demand for healthier, sustainable food options. The Uganda facility plays a key role in procuring and processing soya meal and will also help expand the product portfolio by adding items such as chia seeds, sesame seeds, and sorghum.
Rohan Grover, CEO of Nature Bio Foods, has long been a driving force behind, and pivotal in, the collaboration between LT Foods and Nature Bio Foods Ltd. (NBFL). What began as a strategic business move soon evolved into a partnership that shaped LT Foods’ presence in key global markets, including Europe and the US.
Grover’s vision for NBFL was clear: to meet the growing demand for organic rice and food products in Western markets. By sourcing ingredients directly from Indian farmers, NBFL quickly established itself as a trusted name in the organic food industry, known for its commitment to high quality, sustainability, and authenticity.
With a turnover of Rs933 crore, NBFL is helping LT Foods tap into the booming demand for organic products globally. Rohan says: “The partnership with NBFL BV gave us a foothold in markets that were otherwise difficult to penetrate. It allowed us to not only strengthen our presence in Europe and the US, but also align ourselves with a growing demand for organic products.”
He continues: “At LT Foods, sustainability has always been at the heart of what we do, and NBFL shares this vision. Together, we have built a powerful synergy that has proven essential for our success in competitive international markets. This collaboration is a testament to how global partnerships can create lasting, meaningful impact.”
Building on this global momentum, LT Foods has been making focused investments to deepen its presence in high-potential markets like Europe. Aditya Arora, Director – LT Foods Europe BV, says: “The European market has always been known for its rigorous standards and complex regulatory environment, making entry and scale a significant challenge for any food brand. For us at LT Foods, this was a strategic frontier, one that required a long-term vision and disciplined execution. Our $20 million investment in the Rotterdam facility marked a critical milestone in establishing local credibility, ensuring compliance, and building supply chain efficiencies tailored to the region. More importantly, it reinforced our commitment to the European consumer and our confidence in the growing appetite for premium, authentic basmati rice. We are steadily strengthening our distribution network, enhancing brand visibility, and working towards capturing a meaningful share of the branded segment in Europe. It’s a market that demands consistency, quality, and trust – and we are here to deliver on all three.”
Together, the next generation of the Arora family continues to carry forward the legacy of innovation and leadership set by their predecessors. Their strategic insights and ability to navigate new business landscapes have ensured that LT Foods remains at the forefront of the FMCG sector – poised for even greater success on the global stage.
People-centric growth
At the heart of LT Foods is a blend of visionary leadership from the Arora family and the expertise of key professionals across departments. This collaboration has enabled the company to maintain its global competitiveness while nurturing an agile, people-centric, and innovation-driven culture.
From digital transformation to adopting new marketing techniques, LT Foods has continuously embraced change to stay ahead of the curve and remain relevant to consumers. In today’s fast-paced market, digital transformation is not a choice but a necessity. Varun Sharma, Chief Digital Officer at LT Foods, says: “Our digital initiatives are not just about efficiency; they are about creating an agile, consumer-centric business that can quickly adapt to market changes. From streamlining supply chains with AI-driven systems to enhancing consumer engagement through data analytics, our focus on innovation is enabling us to stay ahead of industry trends and meet evolving consumer demands more effectively.”
Collaborating with EY, the company implemented the AI-powered Asterisk platform, leading to substantial improvements in efficiency and growth. This transformation resulted in nearly doubling revenue, reducing finished goods inventory from 45 days to 20 days, and expanding the distribution network from six to 12 depots, achieving approximately 95 per cent service levels.
The company’s commitment to fostering a diverse, supportive, and growth-oriented environment is key to retaining top talent. Palash Aggarwal, CHRO, explains: “We strive to create a culture where diversity is celebrated and employee well-being is a top priority. Our initiatives like flexible work arrangements, mentorship programmes, and leadership training help ensure that every employee has the opportunity to grow and thrive within the organisation. This focus on holistic employee development has not only built a loyal workforce but has also fuelled innovation, creativity, and productivity.”
He adds: “The company’s approach is not just about maintaining a strong workforce, but about creating a space where professionals can grow, learn, and contribute their unique skills. By doing so, LT Foods has nurtured an environment that encourages collaboration across levels, empowering employees to share knowledge, take risks, and continuously improve.”
This culture of growth and development has been pivotal for leaders like Monika Chawla Jaggia, Chief Corporate Development Officer, whose journey at this global FMCG company in the consumer food space exemplifies its commitment to nurturing talent. Jaggia’s rise from a management trainee to a key member of the leadership team underscores how LT Foods’ dedication to its people has driven its evolution. Monika says: “Having grown with LT Foods from a trainee to a C-suite leader, I have seen firsthand how the company’s commitment to employee development and well-being has been fundamental to our success. LT Foods has always fostered a culture of continuous learning, where individuals are empowered to evolve alongside the company. This focus on personal and professional growth has been crucial to our transformation, enabling us to remain innovative and agile in an ever-changing global market.”
Finance speaks
LT Foods has maintained robust financial health. Sachin Gupta, Chief Financial Officer, explains: “Our focus on building a strong financial foundation allows us to navigate economic fluctuations and geopolitical challenges while continuing to invest in growth. This approach not only helps us weather external pressures but also positions us to capitalise on emerging opportunities. By staying agile and responsive to market shifts, we have been able to prioritise high-return areas that fuel our continued success.”
In the quarter ending March 2025, LT Foods reported consolidated net sales of Rs2,260 crore, marking an 8 per cent year-on-year increase. This growth was driven by increased brand investments and an expanding distribution network, particularly within the basmati and specialty rice segment. Additionally, EBITDA rose by 11 per cent to Rs290 crore.
Ashwani adds: “Our continued investment in strengthening sales and distribution infrastructure, powered by digitisation, has been crucial in driving efficiencies across processes such as paddy procurement, automation, and financial management services. Looking ahead, we remain committed to executing our strategic priorities – transforming our portfolio, maintaining healthy EBITDA margins, and cash flow. This consistent growth in both market reach and operational excellence underscores LT Foods’ dedication to its long-term vision of sustainable expansion.”
K Ganapathy Subramaniam, Chief Marketing Officer, highlights the transformative role of data and AI in marketing. “We have preserved our position as a leading FMCG brand by embracing innovative, consumer-driven initiatives. A strong focus on digital transformation has boosted the impact of our marketing strategies. Furthermore, leveraging data analytics and AI has provided us with deep insights into consumer behaviour, enabling us to craft highly targeted campaigns. These efforts have not only resonated with our audience but also strengthened brand loyalty and consumer engagement on a larger scale. This proactive marketing approach is mirrored in LT Foods’ constant evolution to meet the dynamic needs of today’s consumers. With the rapidly changing landscape, the company remains deeply committed to staying ahead of trends and anticipating consumer demands. The focus is not just on marketing products but on offering solutions that align with the fast-paced lifestyle of today’s world. By understanding what consumers desire at this moment – whether it’s convenience, authenticity, or health-conscious options – LT Foods ensures that it provides products that truly resonate with its audience.”
“The future of food is being defined by the evolving and varied convenience needs of consumers, and it is being fulfilled through various innovative solutions under RTH, RTC, and new snacking categories. We, at LT Foods, are building a portfolio under two platforms – ‘Recipe Solutions’ and ‘Anytime Anywhere’ snacks. With the Recipe Solutions platform, we are developing a product range to help consumers create authentic tastes for special recipes with simple cooking steps, without fear of recipe or scratch cooking. For ‘Anytime Anywhere’ snacks, we are pivoting on the goodness of rice, which is an exciting and healthy ingredient with benefits like being gluten-free. Also, it has not been leveraged fully to its potential in snacking,” says Amit Mehta, Vice President – Food Business, LT Foods and Managing Director – Kameda LT Foods Joint Venture, who has been instrumental in expanding and growing the RTH, RTC and emerging snacking businesses.
Authentic biryani experience
Mehta notes: “Our DAAWAT Biryani Kit is a simplified and complete solution to create an authentic biryani experience at home, without worrying about ingredients, recipe or scratch cooking. It helps consumers to cook biryani at home, without any hassle, using the finest DAAWAT basmati and curated biryani ingredients along with fresh ingredients of choice. We are witnessing strong double-digit growth since launch and have been expanding our distribution within India and key international markets.”
LT Foods formed a joint venture with Kameda Seika, the market leader in rice crackers in Japan, to set up a manufacturing facility with about Rs60 crore in combined investments in December 2019. The JV launched rice crackers under the brand ‘Kari Kari’ in early 2020. More recently, it launched a new product, ‘Krispy Hopu’, with the cheerful flavour ‘Sweet and Salty’. “We will be making more investments. We will expand that portfolio around Japanese rice crackers and even Japanese condiments, etc,” adds Mehta.
Elaborating on further expansion plans in the meal-kit category, Ashwani Arora comments: “We firmly believe in the potential of both platforms and their future. We are planning to introduce new products under both platforms this year and in the years to come. We believe the combined potential of the market size is in excess of Rs2,000 crore.”
Manoj Chugh, Chief Procurement Officer, sheds light on the company’s meticulous procurement process: “At LT Foods, our commitment to quality begins with our industry-leading ‘Fourteen Steps’ process for cultivating and processing Basmati rice. This rigorous approach involves selecting the ideal farmland, evaluating seeds, inspecting produce before and after harvest, and performing in-depth analysis at our procurement centres. Once the raw material reaches our manufacturing facility, it undergoes a series of stringent tests, including psycho-chemical scanning, microbiology, and pesticide residue and heavy metal testing.”
The Arora family’s next-generation entrepreneurs have seamlessly stepped into leadership roles, carrying forward the legacy built by their predecessors. The harmony between familial stewardship and professional management ensures the legacy of LT Foods continues to thrive – ready to shape the future of the FMCG sector for generations to come.