starts - .that tomorrow starts today not only for itself but for its entire stakeholder universe
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L T Food s L im i t ed Annua l R epo r t 2013 - 14
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Business Overview 02
Financial Highlights 08
Chairmans Message 10
Message from the CEO 12
Management Discussion & Analysis 22
Directors Report 29
Corporate Governance Report 37
Standalone Financial Statements 49
Consolidated Financial Statements 81
Forward-looking statementsIn this annual report, we have disclosed forward-looking information to enable investors to comprehend our prospects and take informed investment de-cisions. This report and other statements - written and oral - that we periodically make contain forward-looking statements that set out anticipated results based on the managements plans and assumptions. We have tried wherever possible to identify such statements by using words such as anticipate, estimate, expect, project, intend, plan, believe and words of similar substance in connection with any discussion of future performance. We cannot guarantee that these forward-looking statements will be realised, although we believe we have been prudent in assumptions. The achievement of results is subject to risks, uncertainties and even inaccurate assumptions. Should known or unknown risks or uncertainties materialise, or should under-lying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or projected. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
LT Foods story is that of Dreams
In a nutshell, LT Foods story is one that says
Tomorrow Starts Today!
dreams From a single rice-processing unit to a global branded food Company.envision From a promoter-driven to a professionally - managed Company.
growth From annual revenues of Rs.200 crores in the early 90s to a growth more than12 times today.
potential realized From one brand to many and from rice to newly piloted snacks and staplesand all that has made LT Foods a global success story today. It is basis this spirit to keep innovating, diversifying, exploring new possibilities and impacting lives that is driving LT to pursue that Tomorrow Starts Today not only for itself but for its entire stakeholder universe.
LT Foods at a glance
Incorporated in 1990, LT Foods is fast emerging as a global branded foods company with Annual Revenues
of ` 2493 crores (FY 14). Having built an unbeatable leadership in high quality basmati rice over the
last two and a half decades, Company drives more than 85% of its revenues from basmati rice segment.
Companys sharp focus and methodical shift towards branded basmati rice over the last 50 years has led
to a vibrant bouquet of six core brands and brand extensions which together contribute a dominant 70% to
companys revenues from the rice segment. Two of its basmati rice brands; Daawat and Royal are market
leaders in India and the USA respectively and are valued at over USD 100 million each. The other brands
are Devaaya, Heritage, Rozana and Chefs Secretz.
The Company, post developing a healthy name for it in rice has now started to develop a healthy non-rice
revenue through organic food, ready-to-eat snacks and staples. Its non-rice business portfolio comprises of
two brands MyMy, and Devaaya. The company has made pioneering foray, couple of years back into
grain storage business in partnership with Punjab government and operates a modern granary facility with
storage capacity of 50,000 MT in Amritsar, Punjab.
Vision Customer Delight through Value Added Agri-business
To deliver value to the customer, be profitable and establish leadership in core markets
To command top of mind recall with the customer by ensuring effective brand promotion strategies
Invest in research & development activities to deliver even better products and always stay ahead
Focus on increasing global footprint by venturing into newer markets and at the same time forge fruitful
alliances with entities operating within the same domain
Annual Report 2013-14
Corporate Overview Management Reports Financial Statements
LT Foods Values
Passion for ExcellenceInnovation
Revenue mix by BrandsRevenue mix by geography
Middle East 15%
With a total rice milling capacity of 67 TPH, LT Foods has 5 state of the art manufacturing facilities based out of Haryana
(Sonepat, Kamaspur), Punjab (Varpal, Amritsar) and Madhya Pradesh (Bhopal). In addition the Company has modern
packaging facilities in Houston and California in USA.
Farm-to-fork coverage ensures responsible sourcing, absolute control on product quality and direct engagement with customers
Distribution approach of forging long-term partnership has led to an enviable network of 450 distributors and 1,10,000
retail points and exports to over 60 countries
One of the most professional Indian food companies with an empowering internal culture and openness to external consulting
and training in niche areas
Uniquely positioned among peers with thought leadership in propagation of organic farming, modern granary and spread
of basmati cultivation to Madhya Pradesh
Egypt Algeria Morocco
Togo Ghana Uganda
Facility Capacity Area Specialization
Bahalgarh, Sonepat 33 TPH 42 acres Processing of raw rice
Kamaspur, Sonepat 5 TPH 9 acres Produces Organic rice
Mandideep, Bhopal, Madhya Pradesh 12.5 TPH 56 acresValue-added products like para-boiled rice, health snacks, grains, flour etc.
Varpal, Punjab 12 TPH 27 Acres Raw and par-boiled rice
Amritsar, Punjab 2 TPH 4 acres Raw and par-boiled rice
Annual Report 2013-14
Corporate Overview Management Reports Financial Statements
Quality & Food Safety Certifications:
LT Foods is committed to providing safe and superior quality products to its valued customers. In pursuance, the Company installed
robust quality and food safety systems at all of its plants duly certified by the well acclaimed international certification agencies.
The Company makes ardent efforts to maintaining and improving the food safety systems to measure upto the upgraded version of
international standards. The various accreditations on quality and food safety systems acquired for the plants under the Company,s
umbrella are featured hereafter:
All the Food Safety standards are based on HACCP, GHP and GMP formats.
LT Foods Ltd. Bahalgarh - Sonepat ISO 9001 : 2008 (Qualiy Management System) ISO 14000 : 2004 (Environment Management System) SQF (Safe Quality Foods version-7.1) BRC Global Standard for Food Safety version-6 Kosher Certification (OU)
Nature Bio-Foods Ltd. (Organic Division)
Daawat Foods Ltd. Kamaspur, Sonepat
ISO 22000 : 2005 (Food Safety Standard) NOP (National Organic Programme) of USFDA Organic Standard NPOP (National Programme for Organic Production) EEC 837:2007 (Europe Organic Standard) Kosher Certification from JK Kosher
Daawat Foods Ltd. Mandideep,
near Bhopal (MP)
Rice Plant FSSC 22000 : 2010 (Inclusive ISO:22000 & ISO/TS 22002-1) Food Plant FSSC 22000 : 2010 (Inclusive ISO:22000 & ISO/TS 22002-1) Grain Plant - BRC Global Standard for Food Safety version-6 Grain Plant - FSSC 22000 : 2010 (Inclusive ISO:22000 & ISO/TS 22002-1)
LT Foods Ltd. Varpal, Amritsar FSSC 22000 : 2010 (Inclusive ISO:22000 & ISO/TS 22002-1) BRC Global Standard for Food Safety version-6
LT Foods Laboratory, Bahalgarh - Sonepat National Accreditation Board For Laboratory (NABL) ISO/IEC 17025:2005 for Chemicals (Certificate No. T-2613)
Mr. V. K. Arora, CMD receiving the prestigious IFC award in Washington
Product OfferingsBasmati Rice: LT Foods basmati rice business accounts for 70% of its overall revenue today. Significant
digression from unbranded business to branded basmati has led to better realization and strong brand
visibility. The branded share in total revenues has gone up to 70% from 50% in the last year. Today, the
branded basmati rice commands a healthy 15% share in Indian market. Numerous variants and brands
of basmati rice are exported to over 60 countries across North America, Asia Pacific, Europe and the
Middle East regions.
Healthy Snacks: Company has successfully extended its branded food business into ready-to-eat
snacks with pilot launch of rice based chips, crisps and mixes in multiple flavour variants