LT Foods Limited has announced the incorporation of a new wholly owned subsidiary in Dubai, UAE, as part of its strategy to strengthen global operations and enhance international business synergies. The company informed stock exchanges BSE and NSE about this corporate development under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

New Subsidiary Details

The new entity, named LTF Global Investments L.L.C., will be established in Dubai with specific focus on providing strategic services to the company's international operations. The subsidiary represents LT Foods' commitment to expanding its global footprint and operational efficiency.

Strategic Objectives and Business Purpose

The wholly owned subsidiary has been designed with clear strategic objectives to support LT Foods' international expansion. The primary purpose of LTF Global Investments L.L.C. is to provide global strategic services to LT Foods group's international businesses across multiple regions including USA, UK, Europe, and other international markets.

The establishment of this subsidiary aims to achieve:

• Better operating efficiencies across international operations
• Enhanced synergies between different regional businesses
• Streamlined strategic services for global markets
• Improved coordination of international business activities

Transaction Structure and Compliance

The investment structure has been carefully planned to ensure regulatory compliance and proper corporate governance. LT Foods will subscribe to 100% of the equity in the new subsidiary through cash consideration, making it a completely owned entity.

The company has confirmed that this investment will be treated as a related party transaction and will be conducted on an arm's length basis, ensuring transparency and compliance with regulatory requirements. No specific governmental or regulatory approvals are required for this acquisition.

Corporate Disclosure and Timeline

LT Foods has fulfilled its disclosure obligations by informing both BSE Limited and National Stock Exchange of India about this corporate development. The company's communication, signed by Company Secretary Monika Chawla Jaggia, included comprehensive details about the subsidiary incorporation as required under SEBI regulations.

Since the entity is yet to be incorporated, historical financial information such as turnover for the last three years is not applicable. The subsidiary will focus specifically on providing global strategic services to support LT Foods' established international presence and operations across key markets.

Shares of prominent basmati rice exporters faced selling pressure on Monday following Trump's announcement of a 25% tariff on countries maintaining commercial ties with Iran. The move has created uncertainty for Indian rice exporters despite the country's limited direct trade exposure to Iran.

Stock Performance Impact

The tariff announcement had an immediate impact on rice exporter stocks during Monday's trading session:

LT Foods and other major exporters saw investor concerns mount over potential indirect impacts on their overseas operations, particularly in key markets where they have established presence.

Market Exposure and Revenue Streams

KRBL's financial performance highlights the significance of international markets for Indian basmati rice exporters. The company reported substantial export revenue in FY25:

Key markets for KRBL in the Middle East include Saudi Arabia, the UAE, Kuwait, and Qatar. The Middle East region represents a critical revenue source, with the company deriving around 61% of its basmati export revenue from this geography.

Industry Growth Prospects

Despite current concerns, LT Foods has previously emphasized India's dominant position in global rice markets. The company highlighted that India serves as the world's largest rice exporter, with rising global demand for basmati and specialty rice varieties creating substantial growth opportunities.

Demand drivers across key regions include:

• North America and Europe: Growing consumption among mainstream consumers and diverse ethnic communities
• Gulf Region: Strong demand for aromatic rice varieties
• Product Innovation: Increasing preference for convenient food products, including pre-cooked rice and Daawat biryani kits

Tariff Details and Implementation

Trump announced the tariff measures through a post on Truth Social, stating that any country conducting business with Iran would face a 25% tariff on all trade with the United States. The tariff became effective immediately, though specific details about what constitutes "doing business" with Iran remain unclear.

China leads Iran's trading partners, followed by Iraq, the United Arab Emirates, Turkey, and India. The White House has not yet provided comprehensive details regarding the scope of the tariffs or identified which countries or sectors might face the most significant impact.

Market Outlook

While India's overall trade exposure to Iran remains limited and largely concentrated in products such as basmati rice, the development has created uncertainty among investors regarding potential indirect effects on exporters with meaningful presence in overseas markets. The rice export industry continues to monitor developments as companies assess potential implications for their international operations.