[Funding alert] Processed food exporter Allana Group picks minority stake in LT Foods; invests Rs 20Cr
The Allana Group — an exporter of processed food products and agro commodities — on Tuesday said it has picked a minority stake of one percent in consumer products company LT Foods with an investment of Rs 20 crore.
With this partnership, both companies plan to use their synergies and technology transfer to expand LT Foods' consumer products business to focus on value-added and impulse products, the group said in a statement.
Speaking on the investment, Fauzan Alavi, Director of Allana Sons, said,
“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.”
The Allana Group distributes premium brands such as London Dairy Ice Cream, Sunny Oil, and Pristine Bakery. It is India’s largest exporter of frozen and chilled meat, processed and frozen fruit and vegetable products, coffee, spices, and cereals to over 85 countries. The group is making several strategic investments in many public and private companies.
Its integrated processing units and cold storages, along with state-of-the-art machinery, have helped the company evolve into a multi-dimensional and multi-product conglomerate. It ensures that all its processes are duly accredited by leading international organisations.
LT Foods is a leading player in the rice market with leading brands like Daawat, Royal, and Devayya and has a network in over 65 countries. The company is looking to end FY21 with revenue of Rs 4,500 crore and an EBITDA of Rs 600 crore.
Last year, LT Foods acquired a 30 percent stake in Leev.nu of The Netherlands through its subsidiary Nature Bio Foods BV (NBF B.V.), with an option to acquire a further 21 percent stake at the end of five years.