Gurugram, India – May 26, 2025 – In a strategic move to solidify its dominance in the global specialty rice market, LT Foods Limited (NSE: LTFOODS), renowned for its flagship brand Daawat, has announced the complete acquisition of California-based Golden Star Trading, Inc. The company’s wholly-owned subsidiary, LT Foods Americas Inc., acquired the remaining 49% equity stake in Golden Star for $15 million in cash, elevating its ownership to 100%.
A Strategic Move to Capture the US Market
Golden Star Trading, established in 1989, is a key player in the US market, specializing in Jasmine Rice and processed fruit products. The acquisition aligns with LT Foods’ goal to deepen its foothold in North America, where demand for premium and ethnic foods is on the rise. By securing full control of Golden Star, LT Foods can streamline operations, enhance its product offerings, and better serve a diverse consumer base.
The $15 million deal, funded entirely in cash, was classified as a related-party transaction but does not involve promoter interests beyond the disclosed terms. No regulatory approvals were needed, allowing for a swift completion. Golden Star has shown impressive growth, with its revenue climbing from $65 million in FY23 to $117.8 million in FY25, reflecting its strong market demand and operational success. This acquisition strengthens LT Foods’ ability to leverage Golden Star’s established distribution channels and market presence to grow its US portfolio, which includes the popular Royal brand, a leading Basmati rice brand in North America.
LT Foods: A Global Powerhouse in Specialty Foods
Based in New Delhi, LT Foods has built a reputation as a global leader in the specialty rice industry over its seven-decade history. The company operates in over 65 countries, offering premium brands like Daawat, a household name in India, and Royal, a top choice in the US. LT Foods is also expanding into organic products through its Ecolife brand and supplies organic ingredients to major global markets. With a focus on quality, sustainability, and innovation, LT Foods has become a trusted name in the food industry.
The company boasts a robust operational network, including seven certified manufacturing units and 23 distribution centers as of FY23. It has also prioritized innovation, securing 23 patents and trademarks in FY23 and introducing seven new products to meet evolving consumer tastes. Through its subsidiary Nature Bio Foods Limited, LT Foods leads in organic staples, serving markets in the US and Europe. Its European arm, LT Foods Europe BV, established in 2017 near Rotterdam, supplies nearly a third of the EU’s Basmati rice demand.
Financial Snapshot: Strong Growth and Profitability
LT Foods has delivered consistent financial growth, underscoring its operational strength and market leadership. In FY23, the company recorded consolidated revenue of ₹6,936 crore, a 28% jump from ₹5,427 crore in FY22. Net profit for FY23 rose to ₹423 crore from ₹309 crore the previous year, driven by strong demand and efficient cost management. The company’s EBITDA reached ₹744 crore in FY23, up from ₹620 crore in FY22, while earnings per share (EPS) increased to ₹12.50 from ₹9.13.
In FY25, LT Foods achieved a milestone by surpassing $1 billion in consolidated revenue. Its Q4 FY25 results, released on May 15, 2025, reported a 7% rise in net profit to ₹161 crore, fueled by growth in both domestic and export markets. Operating cash flow for FY25 was ₹462.5 crore, roughly 0.76 times the net profit of ₹605.34 crore, reflecting solid cash generation. The company increased its investment spending by 24% to ₹250.39 crore in FY25, signaling its commitment to growth initiatives like the Golden Star acquisition.
LT Foods maintains a disciplined financial structure, with interest costs at just 1% of operating revenue and employee expenses at 5.65% in FY25. As of May 23, 2025, the company’s market capitalization stood at ₹13,968.25 crore, with its share price at ₹408.85 on the NSE, up 90.6% over the past year. The stock reached a 52-week high of ₹451.60 and a low of ₹186.30, reflecting strong investor confidence.
Market Opportunities and Investor Outlook
The acquisition of Golden Star positions LT Foods to capitalize on the growing US demand for specialty rice and ethnic foods. With Golden Star’s expertise in Jasmine Rice and processed fruits, LT Foods can diversify its offerings and strengthen its competitive edge. The US market, with its diverse consumer base, presents significant growth potential, and LT Foods’ established brands and distribution network make it well-equipped to seize this opportunity.
Analysts view the acquisition as a smart move to enhance LT Foods’ market share and product diversity. The company’s focus on branded products, which accounted for 65% of its revenue in FY23, supports its long-term goal of reaching ₹100 billion in revenue. Stable Basmati production in India, resilient to weather challenges due to advanced irrigation, and growing export demand in regions like the US and the Middle East further bolster the company’s outlook.
Investors remain optimistic, as evidenced by LT Foods’ strong stock performance. The company’s promoter holding is 51%, though it has slightly decreased over the past three years. On May 15, 2025, LT Foods’ board approved a ₹1 per share dividend and the acquisition of Global Greens, alongside launching the Employee Stock Ownership Scheme (ESOS) 2025, signaling confidence in its future growth.
Challenges and Growth Potential
Despite its strong position, LT Foods faces competition in the specialty rice market and potential fluctuations in raw material costs. Its emphasis on premium, branded products and organic offerings helps mitigate these risks by ensuring higher margins and customer loyalty. The company’s investments in innovation, including new product development and intellectual property, position it to meet the preferences of health-conscious consumers, particularly younger demographics.
Moving forward, LT Foods aims to expand its product categories and shift further toward branded offerings. Strategic acquisitions like Golden Star and Global Greens highlight its commitment to global growth and market leadership. With a solid financial foundation, a diverse portfolio, and a growing presence in key markets, LT Foods is well-positioned to thrive in the global specialty food industry.
Conclusion
LT Foods Limited’s acquisition of Golden Star Trading, Inc. marks a significant milestone in its global expansion strategy. By gaining full ownership, LT Foods strengthens its position in the US specialty rice market, enhances its product portfolio, and sets the stage for sustained growth. With robust financials, a focus on innovation, and a clear vision for the future, LT Foods remains a compelling player in the specialty food sector, delivering value to consumers and investors alike.
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