Rice is the second largest produced cereal in the world and is cultivated in over

100 countries . In world paddy production, Asias share is more than 90 percent.
Paddy is a primary foodgrain crop of India and occupies about 37 percent of the
area under foodgrains and contributed more than 40 percent of foodgrains
production in the country during 2000-01. More than 50 percent of countrys
population depends fully or partially on rice as it constitutes the main cereal food
crop of the diet.
In India, rice accounts for nearly one third of its agricultural production, 13% of
overall agricultural exports and 1.6% of total exports from India. The rice
industry in India is is broadly divided into two segments i.e. basmati and nonbasmati with the non-basmati constituting over 95% production by volume.
Basmati rice is a premium rice variant grown in India and Pakistan. With
production share of 53%, India is the largest producer and exporter of basmati
rice and commands premium over its traditional rivals in terms of prices and
quality
Basmati rice and its export 5.1 Basmati rice is also known as Queen of Rice and
Pearl of Rice. All aromatic rice is not basmati. In addition to aroma, the basmati
rice has a combination of specific kernel elongation with minimum breadth wise
swelling, fluffiness, palatability, easy digestibility and longer shelflife. In order to
maintain its status as specially rice, the Ministry of Agriculture, Government of
India, has provided a set of minimum standards for rice varieties to quality as a
Basmati variety. In India Basmati rice is characterized by extra long, superfine
slender grains having a length to breadth ratio of more than 3.5, sweet taste,
soft texture, delicate curvature and an extra elongation with least breadth-wise
swelling on cooking. Basmati Rice gives pleasant flavour after cooking. These
superfine best quality of Basmati rice are most preferred specially for Biryani and
Pulao preparation on special occasion and also meant for high premium value in
the national and international market.
In 2009,

With rapid urbanisation, improving per capita income and lifestyle and evolution
of organised retail, the Indian rice industry is witnessing a gradual shift towards
branded rice. While the branded rice constitutes ~10% of the Indian rice market,

its demand has been growing at around 15% in the domestic market and is likely
to catch up with the international trend of ~25% annually. In FY 09, the basmati
rice exports from India recorded an impressive growth of 118% and reached Rs.
9,477 crore in value terms. In contrast, following the restrictions imposed by the
government, export of non-basmati rice shrunk to Rs. 1,687 crore in value terms
in FY 09 in comparison to Rs. 7,409 crore in FY 08. Of the total basmati exports,
branded basmati constitutes less than 15% in volume terms. The leading export
destinations include Saudi Arabia, Kuwait, the UAE and the US. The growth in
exports of basmati from India is expected to have sustained in FY 10, despite the
overall agricultural growth slipping to 0.2%.
LT Foods, with its strong franchisee network and a significant export market
share is poised to reap the benefits of growing penetration of branded basmati.
Production of basmati has recorded a 3% CAGR in the last three years whereas
domestic consumption has been increasing at over 10% for the same period.
In 2010,
LT Foods featured amongst the top 3 players in the sector and made right
investments to further strengthen its leadership. The Company further
strengthened its distribution capabilities, which was already enjoying the
support of vast distribution network and presence in all major cities and towns of
the country. The Company further intensified its efforts to make Daawat a
household brand synonymous with authentic basmati. It deployed a 360 degree
brand promotion exercise including advertising campaigns in print and television
and an effective in-themarketplace/in-store consumer engagement programme.
Introduction of usage based variance of Daawat impacted in good growth for the
brand.
In 2011,
LT Foods was ranked no. 2 in the Indian market (AC Nielsen report) and enjoyed
more than 40% market share in US, Australia and Mauritius. The flagship Daawat
brand continued to lead the Companys growth impetus in its segments. The
company focused on positioning Daawat as specialty rice in both, the domestic
and the international markets. It regularly introduced new rice blends and
variants so as to sustain as well as keep a strong hold of the rice market.
In 2012,
LT Foods remains the second largest Basmati rice producer in the country, with
a global presence that extended beyond this core business into a host of
valueadded business streams, including Organic Foods, Value-Added Staple
Foods, Healthy Snacks and Grain Storage (Agri-Infrastructure).
The basmati rice segment enjoyed a ~14% share in India (A.C. Nielson report
2010-11). The flagship brand, Daawat, continued to expand and grow its
leadership strength across Indian and International markets, with #2 ranking in
the Indian market share. Royal had the enviable position of #1 Basmati rice
brand in USA, where it was a market leader with more than 40% share. Basmati

Rice was and is exported to over 60 countries, with significant presence in USA
and Middle East.
In 2013,
LT Foods basmati rice business accounted for 70% of its overall revenue . The
branded share in total revenues has gone up to 70% from 50% in the last year.
The branded basmati rice commanded a healthy 15% share in Indian market
which was a 1% rise from the previous share.