LT Foods Surges 4% On UK Expansion
With the expansion in the UK LT aims to tap the Euro 1 billion rice and rice-based food market
The stocks of LT Foods surged more than 4 per cent in the Friday trading session after its subsidiary opened a manufacturing facility to expand in the UK market.
LT Foods stock traded at Rs 291 with 3.96 per cent gain in the afternoon session on the National Stock Exchange (NSE).
“We wish to inform you that LT Foods UK, step down subsidiary of LT Foods, has inaugurated a new state-of-the-art facility in the United Kingdom (U.K.),” stated LT Foods in an exchange filing.
With the expansion in the UK LT aimed to tap the Euro 1 billion rice and rice-based food market. With this new facility, LT Foods is set to tap the rice market in the UK and meet the growing demand for premium rice and rice-based food products.
Located in Harlow, the new facility is spread over an area of 100,000 square feet offering strategic advantages and efficiency. To provide a diverse range of options to meet varying consumer demands, the facility will offer both branded and private-label products.
The rice and rice-based food market in the U.K. is worth around Euro 1 billion. To tap this opportunity, LT Foods has made an initial investment of Euro 7 million in this new facility with a commitment of further investment upto Euro 50 million in the coming years.
The company is expecting annual revenue to the tune of Euro 50 million over the next two years, with a targeted Euro 100 million within the next five years.
The company has already partnered with 4 leading retailers in the U.K. with plans to further scale this up. Moreover, the facility boasts a production capacity of 60,000 tonnes of rice per annum, setting the stage for substantial growth in the coming years.
