Future Group inks deal with agri-processor
Gurgaon based LT Foods is a diversified agri and foods company dealing in varied businesses such as organic foods, grain storage, staple foods and healthy snacks market with sales of US$280m.
But is has mounting debt levels that has led it to selling 53.67% of its investment arm, Future Capital Holdings, to US-based private equity Warburg Pincus, according to the Times of India.
LT Foods, maker of Dawaat basmati rice, will utilise the integrated food park’s facilities that are being developed by Future Group subsidiary, Future Ventures.
LT Foods will set up milling, processing and storage facilities for sona masuri rice at the food park and both parties will develop and market private label healthy snacks to be manufactured at Daawat Foods’ facilities. Dawaat is a subsidiary of LT Foods.
Both parties also agreed to work on a wide range of organic staple foods being processed by Nature Bio Foods, another subsidiary of LT Foods, in its facilities in North India.
LT Foods was not available for comment at the time of publication.
“Food consumption in India is largely in commodities and there lies a huge opportunity to provide customers with branded, value-added products that offer superior quality and health benefits and benefit everyone in the ecosystem,” Kishore Biyani, founder and group CEO, Future Group said.
Future Group, which is also India’s largest retailer, announced in January this year that it will set up a food park spread over 100 acres. According to the company, construction on the park, land for which has already been acquired, will be completed within two years.