LT Foods Limited, a prominent player in the Indian food industry, has made a strategic move to diversify its portfolio by acquiring three European food processing companies for a total consideration of €7.8 million. This acquisition marks LT Foods' entry into the shelf-stable fruits and vegetables business, signaling a significant expansion of its product offerings and geographical reach.

Acquisition Details

LT Foods has executed a Share Purchase Agreement to acquire 100% shareholding in three companies:

1. Global Green Europe Kft.
2. Greenhouse AGRAR Kft.
3. Global Green International (UK) Limited

The acquisition will be carried out through LT Foods Europe Holdings Limited, a subsidiary of LT Foods Limited. The financial structure of the deal is as follows:

The earn-out portion is contingent upon future earnings, demonstrating a performance-based approach to the acquisition.

About the Acquired Entities

The acquired companies specialize in the production and distribution of shelf-stable fruits and vegetables, with operations primarily based in Hungary. Key highlights of their business include:

• Serving over 30 countries across Europe
• Two manufacturing sites spread across 45 hectares in Hungary
• Annual production capacity of 117 million jars and cans
• Workforce of over 170 employees

Their product range includes:

• Sweet corn in cans
• Gherkins in jars
• Silver skin onions in jars
• Sour cherries in jars

Financial Performance

The acquired entities have demonstrated consistent financial performance over the past three years:

Strategic Implications

This acquisition aligns with LT Foods' long-term vision of becoming a more diversified and resilient food company. By entering the processed ambient fruits and vegetables business, LT Foods is expanding its product portfolio and gaining a foothold in the European market.

Regulatory Aspects and Timeline

The completion of the acquisition is subject to FDI clearance in Hungary and is expected to conclude in Q3 FY2025-26. LT Foods has confirmed that this transaction does not fall under related party transactions, and neither the promoter nor the promoter group has any interest in the entities being acquired.

Market Impact

This strategic move by LT Foods is likely to enhance its global presence and diversify its revenue streams. The acquisition provides LT Foods with established manufacturing facilities, a skilled workforce, and access to a wide European customer base, potentially accelerating its growth in the international processed foods market.

As LT Foods integrates these new entities into its operations, investors and industry observers will be keen to see how this expansion impacts the company's overall performance and market position in the coming years.

LT Foods , a leading Indian-origin global FMCG company, has announced the expansion of its meal kit portfolio with the launch of the Daawat Thai Green Curry Rice Kit. This strategic move aims to strengthen the company's presence in the rapidly growing Ready-to-Cook (RTC) and Ready-to-Eat (RTE) segments, catering to the evolving tastes of global consumers.

A Taste of Thailand at Home

The new Daawat Thai Green Curry Rice Kit is designed to bring authentic Thai cuisine to consumers' homes with ease and convenience. This all-in-one solution combines the finest quality Jasmine Rice sourced from Thailand with a pre-mixed blend of coconut milk, quality ingredients, and spices curated by culinary experts to create an authentic green curry paste. The kit also includes whole spices to add the perfect balance of fresh aroma and flavor, all without artificial colors or preservatives.

Strategic Expansion in the RTC Segment

This launch follows the success of LT Foods' Daawat Biryani Kit, which has achieved over 1 million units in annual consumption since its introduction. The company's expansion into the meal kit segment aligns with its consumer insight-driven innovation strategy, addressing the growing demand for convenient, high-quality, and globally-inspired meal solutions.

Availability and Market Reach

The Daawat Thai Green Curry Rice Kit is now available across leading e-commerce and quick commerce platforms, making it easily accessible to consumers looking for gourmet cooking experiences at home.

Executive Insights

Ritesh Arora, CEO of India and Far East Business at LT Foods, commented on the launch:

"We are excited to announce the launch of the Daawat Thai Green Curry Rice Kit in India, another significant step based on our consumer insight-driven Innovation Strategy. As part of our strategy, we follow ever-evolving consumer needs to develop the right solutions. We acknowledge consumers' growing interest in authentic global cuisines and their taste preferences."

Company Overview

LT Foods Ltd. has been a prominent player in the specialty rice and rice-based foods business for over 70 years. The company's flagship brands include Daawat, one of India's most beloved Basmati brands, and Royal, North America's leading rice brand.

With a consolidated revenue of approximately ₹8,770.00 crore, LT Foods maintains an integrated "Farm to Fork" approach. The company boasts a robust global supply chain with processing units in India, the U.S., and Europe, supported by a distribution network of over 1,400 distributors worldwide.

Future Outlook

As LT Foods continues to expand its product range and global reach, the launch of the Daawat Thai Green Curry Rice Kit represents a significant step in the company's strategy to capture the growing market for convenient, international cuisine options. This move not only diversifies LT Foods' portfolio but also positions the company to meet the changing preferences of modern consumers seeking quality, convenience, and global flavors in their everyday meals.