LT Foods announces new rice facility in India
The plant will focus on processing popular South Indian rice varieties such as Sona Masoori and Kolam, with commercial production expected to begin in February 2026.
INDIA – LT Foods Ltd, a global leader in rice-based consumer foods, plans to invest ₹6 crore (US$665,316) in a new manufacturing facility in Raichur, Karnataka, to boost its supply chain for regional rice varieties like Sona Masoori and Kolam.
The plant, with an initial capacity of 30,000 metric tonnes per annum, targets South India’s booming non-basmati market, where demand is surging amid urbanization and formalization.
Commercial operations are slated to begin around February 2, 2026, pending regulatory approvals, and will be funded entirely through internal accruals.
This move aligns with LT Foods’ strategy to deepen penetration in premium regional rice, popular across Karnataka, Andhra Pradesh, Telangana, and export markets serving the Indian diaspora.
The facility enhances sourcing, processing, and distribution efficiency in a key consumption hub.
CEO Ritesh Arora, India Business & Far East, highlighted supply chain resilience: “This investment strengthens our capabilities for South India’s preferred varieties, supporting domestic growth and exports.”
LT Foods, known for its Daawat and Royal basmati brands, reported robust Q2 FY26 results, with 30% revenue growth to ₹27.72 billion (US$307.4M) and 24% EBITDA growth, fueling such expansions.
The company operates across basmati and non-basmati segments, with ongoing capacity builds to meet 10-12% annual market growth.
Industry experts believe the new facility will help LT Foods consolidate its leadership in the rice sector, where it already commands strong brand recognition through Daawat and other labels.
The investment also reflects a broader trend of formalization in India’s regional food markets, as companies move to standardize the quality and packaging of traditional staples.
With this expansion, LT Foods is not only reinforcing its domestic footprint but also preparing to meet growing international demand for South Indian rice varieties.
The Raichur plant is expected to serve as a key hub for regional rice production and exports, strengthening India’s role in the global rice trade.
In October, LT Foods agreed to acquire 100% of Global Green Europe, a Hungary-based producer of shelf-stable fruits and vegetables, to “further strengthen” its ready-to-heat and ready-to-eat business.
LT Foods’ new Karnataka facility represents a strategic investment in regional rice varieties, enhancing supply chains, meeting consumer demand, and positioning the company for growth in both domestic and international markets.
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