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LT Foods, KRBL surge up to 10% after government removes MEP on basmati rice: Shares of LT Foods
Source: Business Standard
The MEP of basmati rice was first imposed last year at $1,200 per tonne, before it was lowered to $950 per tonne.
Shares of LT Foods hit a record high of Rs 446.30, as they rallied 10 per cent on the BSE in Monday’s intra-day trade, while shares of KRBL soared 7 per cent to Rs 324.30 on the back of a three-fold jump in average trading volumes.
LT Foods is primarily engaged in the specialty rice and rice-based foods business. The company’s flagship brands include DAAWAT, and Royal, one of the leading basmati rice player in North America, among others.
At 11:02 AM, LT Foods was trading 8 per cent higher at Rs 441.20, as compared to the 0.19 per cent rise in the BSE Sensex. The stock has surpassed its previous high of Rs 418.75 that it touched on September 6, 2024. The market price of LT Foods has more than doubled or zoomed 139 per cent from its June month low of Rs 186.75.
LT Foods’ flagship brand, Daawat commands a 30 per cent market share and leads in more than 80 countries. On the other hand, its another flagship brand, Royal continues to command a market share of more than 50 per cent in the US. Royal has also gained leadership position in other geographies.
The company said it is poised for a promising future, underpinned by its strategic focus on sustainable growth, innovation and market expansion. The company is set to capitalise on the increasing global demand for specialty and organic food products by deepening its presence in established markets, such as India, the US, and Europe, while expanding into high-growth regions such as the Middle East and Far East.
The company also stated that it will continue to grow its core Basmati rice business by investing more on brands and expanding its distribution reach with Revised Route-to-Market and product portfolio expansion by leveraging the brand equity and the existing distribution network.
It added that innovations in product development, such as ready-to-eat and ready-to-cook meal kits, can attract convenience-seeking consumers, particularly among millennials and Gen Z age groups.
The company produces both, basmati rice and non-basmati rice. It is also engaged in the manufacturing of by-products such as bran oil, furfural, de-oiled cakes, etc.
The company predominantly manufactures and markets branded rice products in India and across the globe.
‘India Gate’, the flagship brand of the company, commands a premium in both the Indian and international markets, contributing around 55 per cent of KRBL’s total income.
First Published: Sep 16 2024 | 11:41 AM IST
