In a strategic move to tap into evolving consumer preferences, LT Foods Ltd, the owner of renowned basmati rice brands Daawat and Royal, is setting its sights on the ‘Convenience & Health’ segment as a catalyst for company growth. CEO Ashwani Kumar Arora has announced plans to target a revenue contribution of 8 to 10 percent from this segment over the next five years.
Leveraging its well-established brands and robust distribution network, LT Foods is poised to introduce an array of ready-to-cook and ready-to-eat products in the Convenience & Health category. This category has witnessed a surge in demand within Indian households, notably following the COVID-19 pandemic.
Mr. Arora stated, “Our objective is to capture 8-10 percent of our total revenue from the third vertical, Convenience & Health, within the next five years.” This strategic move reflects LT Foods’ commitment to diversification and innovation in response to changing consumer preferences.
Approximately four years ago, the Delhi-based company ventured into the Convenience & Health segment by extending its Daawat brand to the US market. Since then, LT Foods has successfully expanded its presence in this segment within the Indian market as well.
The COVID-19 pandemic brought about significant shifts in consumer behavior, with health and convenience becoming paramount factors in purchasing decisions. Consumers increasingly sought convenient and healthy food options, leading to a surge in the demand for ready-to-cook and ready-to-eat products.
LT Foods is strategically positioned to capitalize on this evolving trend, primarily due to its well-established brands and distribution prowess. Daawat and Royal, with their legacy of quality and trust, provide a strong foundation for the company’s foray into the Convenience & Health segment.
Brand extension, exemplified by the expansion of Daawat into the US market, has proven to be a successful strategy for LT Foods. This approach allows the company to leverage the recognition and trust already associated with its flagship products to introduce new offerings that cater to changing consumer preferences.
By setting a target of 8 to 10 percent revenue contribution from the Convenience & Health segment, LT Foods aims to ensure sustained growth and profitability in an evolving market. This move aligns with the company’s commitment to meeting consumer demands for healthier and more convenient food choices.
The food industry is witnessing dynamic changes as consumer tastes and preferences evolve. LT Foods recognizes the importance of adapting to these shifts and remaining competitive by offering products that align with current trends.
As LT Foods continues to innovate and expand its presence in the Convenience & Health segment, the company is well-positioned to not only cater to changing consumer preferences but also strengthen its market leadership. The coming years will be crucial as LT Foods works towards achieving its revenue targets in this dynamic and promising sector.
LT Foods’ focus on offering healthier and more convenient food options also aligns with India’s broader goals of promoting a sustainable and health-conscious food industry. By introducing products that cater to these objectives, the company contributes to the nation’s efforts to create a healthier and more resilient food ecosystem.
In conclusion, LT Foods’ strategic move to target 8 to 10 percent revenue from the Convenience & Health segment over the next five years underscores its commitment to adapt to changing consumer preferences and foster sustained growth. Leveraging its established brands and distribution strength, the company is well-poised to make a significant impact in this evolving market landscape. As consumers increasingly seek convenient and healthier food choices, LT Foods’ expansion into the Convenience & Health segment reflects a proactive approach to meet these demands and maintain its position as a leader in the food industry.
