Allana Group acquires a minority stake in LT Foods with an investment of Rs 20 crore

The Allana Group — an exporter of processed food products and agro commodities — on Tuesday announced that it has acquired a minority stake of one percent in consumer products company LT Foods with an investment of Rs 20 crore.

With this partnership, both companies intend to utilize their synergies and technology transfer to grow LT Foods’ consumer products business to focus on value-added and impulse products, the group said in a statement.

Commenting on the development, 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 synergize our strengths to provide our products in the Indian market, and also explore export markets together to capitalize on our strengths while maintaining the highest standards of quality in procurement, manufacturing, and distribution.”

The Allana Group distributes premium brands such as Sunny Oil, London Dairy Ice Cream, and Pristine Bakery. It is India’s largest exporter of coffee, spices, frozen and chilled meat, processed and frozen fruit and vegetable products, and cereals to more than 85 countries. The group is making several strategic investments in many public and private companies.

Its integrated processing units and cold storages, coupled with state-of-the-art machinery, have helped the company grow into a multi-dimensional and multi-product conglomerate. It ensures that all its processes are properly approved by leading international organizations.

LT Foods is a leading player in the rice market with leading brands like Daawat, Royal, and Devayya and has a network in more than 65 countries. The company is planning to end FY21 with revenue of Rs 4,500 crore and an EBITDA of Rs 600 crore.

Last year, LT Foods secured a 30 percent stake in Leev.nu of The Netherlands via 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.