LT Foods shines after forming JV with Kameda

LT Foods is entering a joint venture with Kameda Seika of Japan to manufacture and market, rice based snacks in India.  The share price of LT Foods has increased by 3.95 per cent on bourses in early trades; and is trading at Rs 262.85 on an intraday basis.

LT Foods has presence in more than 65 countries around the world with revenue of Rs. 3000 crore in FY16. Kameda is the global leader in rice based snacks and it commands about 30 per cent market share in Japan and has a prominent presence in the gluten free cracker market in the US.

The JV is based on the belief that the large and expanding urban middle-class in India are ripe for a healthy and tasty alternative to fried potatoes and wheat based snacks. It will introduce rice based snacks with proprietary Japanese technologies developed over 30 years. These products have been highly successful in South East Asia and the US. The JV plans to launch four different flavours customised for taste of Indian consumers.

Once JV has cultivated then it will look at exporting the product to regional markets in South Asia. LT Foods' existing strong distribution network and supply chain was a key attraction for its partner Kameda. The JV will start manufacturing the snack range in Sonepat later in the next financial year.