LT Foods, owners of Daawat, has entered into an agreement to acquire the Branded Rice Business of Hindustan Unilever (HUL). The acquisition includes 2 Iconic Brands - Gold Seal Indus Valley and Rozana which have been in business for some decades. The total cost of the acquisition is approximately Rs 25 crore which is subject to closing adjustments and CCI approval. The acquisition will be funded by debt and internal accruals.
The acquisition will strengthen the company’s position in the Middle Eastern Market, as it gives an entry in the markets of Qatar, Oman, and Bahrain in addition to strengthening its existing presence in Saudi Arabia, UAE and Kuwait. Apart from GCC markets, the brand also enjoys latent equity across India, North America, some of the European Union and Asian countries.
LT Foods is one of the country’s leading processor and exporter of packaged rice foods under the flagship brand ‘Daawat’. The brand is among the top players in the domestic branded Basmati Rice markets.
