LT Foods, which specialises in packaged staples and ready-to-cook foods, will step up investments in new product development, innovation, and packaged value added products as it looks to leverage fast-growing categories such as in-home signature cuisines, ready-to-heat products, and organic foods.
New product development, which previously contributed 2% of the company’s total revenue, is expected to increase to 10% of its overall revenue in the next five years.
The maker of Daawat rice, Kari Kari snacks and Royal ready-to-heat rice products is extending its Daawat brand to ready-to-cook biryani packs, which it said it will place on e-commerce platforms, organised retail and general trade.
According to LT Foods’ managing director, Ashwani Arora, this is a step to expand their product portfolio on the convenience and health platforms using innovation and consumer insights.
The company foresees the new launch bringing in revenues of Rs 250-300 crore over the next three-five years.
Sufficient investments would be made for growth and in the supply chain to scale the business. These are in line with top consumer trends which have been continuously evolving, including health and wellness, food safety, and convenience, “Arora said.
LT Foods expects to spend 4% of branded sales on marketing, which is 75% of its total revenue.