NEW DELHI: India-based exporter of meat, frozen fruits and vegetable products, coffee, spices and cereals, Allana Group, on Tuesday announced an investment of Rs20 crore for a 1% stake in LT Foods that sells Daawat and Royal branded rice.
The two companies plan to work together to expand the packaged rice company’s consumer products business to focus on value-added as well as impulse food products.
Also Read | Six wrong calls on post-covid economy
“Both companies have underlying strengths in distribution, production and marketing of food products. This will give the alliance a superior edge in the market. We look forward to working with LT Foods and synergise our strengths to provide our products in the Indian market and also explore export markets together to capitalise on our strengths while maintaining the highest standards of quality in procurement, manufacturing and distribution," Fauzan Alavi, director of Allanasons.
Allana Group has a large export business that sells ships its products to over 85 countries. It also distributes brands such as London Dairy Ice Cream, Sunny Oil, and Pristine Bakery.
LT Foods sells its packaged rice brands such as Daawat, Heritage, Royal, across the US, India, the UK, Europe, Middle East and Far East. It also has a range of organic food products, apart from rice-based sauces and snacks. For FY20, it reported revenue of Rs2,350.07 crore, according to data available with the BSE.
In January, LT Foods had announced the acquisition of a 30% stake in Leev.nu, a Netherlands-based packaged foods company through its subsidiary Nature Bio Foods BV.
Click here to read the Mint ePaperMint is now on Telegram. Join Mint channel in your Telegram and stay updated with the latest business news.