LT Overseas North America, the wholly owned subsidiary of LT Overseas Ltd. the makers of Daawat, has acquired the US-based Kusha Inc which imports premium quality basmati rice from India Kusha Inc has a revenue of approx $ 40 million. At present LT Overseas Ltd. has a market share of just 7% in the US market but with this major acquirement, the marketplace for LT Overseas Limited (LTOL) will be increased to almost 51% in the US market which will further increase EPS of the company to the major extent moving on to a bigger platform to showcase the company?s various brands.
The US is one of the key focused markets of LTOL, with a high potential for growth in the rice industry. This is the largest overseas acquisition of its major worth in terms of market value in the rice industry. This strategic acquisition is a significant achievement in a market that is fast growing with high entry barriers in rice industry and will not only focus the growth in North America?s market but rather will reflect in the industry as a whole.
Commenting on the strategic investment Mr. Ashwani Arora joint Managing Director LT Overseas Limited, said, ?Rice has matured into the main course with the popularity of international dishes. This acquisition is the first major step of the inorganic growth strategy of the Company and a milestone towards building up a global agro product company & a strong market for the basmati rice? across the globe.
Abhinav Arora, Director of LTONA, said the completion of this acquisition will allow us to expand our distribution channels and diversify our operations leading to rice manufacturing. Our Company will continue to target and acquire other food industry corporations to remain competitive and bring more product experience compared to other companies in the industry & to make the name Daawat a known one in the food industry?.
Sam Nayyeri, Kusha Inc who will be continuing his association with Khusha, said, “With this acquisition, Kusha Inc. has a more diverse platform for its brands to be known in the market and to be available for its ultimate consumers?.