The Hindu Business Line : LT Overseas to hike milling capacity

LT Overseas Ltd, which makes "Daawat" brand of basmati rice, expects to come out with an IPO by the "second or third week of October". The company plans to raise Rs 60 crore from the IPO, of which Rs 36 crore will be invested towards capacity expansion and the remaining Rs 25 crore will be utilised for working capital.

"LT Overseas Ltd plans to increase the company's milling capacity from 25 tonnes of paddy per hour to 31 tonnes per hour. It will also purchase silos for the storage of rice, a par-boiling facility and a power turbine," the Managing Director of LT Overseas, Mr V.K. Arora told presspersons on Monday.

The company exports 45 per cent of its turnover. Last year, the company's exports totalled Rs 180 crore on a turnover of Rs 400 crore. "This year, we expect to export Rs 240 crore out of total turnover of Rs 480 crore," Mr Arora added.

RICE SILO

Speaking at the inauguration of its silos warehousing facility for the storage of rice, Mr Arora said the present silos would be able to store up to 10,000 tonnes of milled rice. "In the second phase, we will be increasing the capacity to 13,000 tonnes", he said. The present silo capacity would meet 10-15 per cent of the company's requirement.

LT Overseas is also looking to expand its presence in countries in Europe, the US, West Asia and Australia with its different flavours of basmati rice. In India, the market for unbranded rice is estimated at Rs 1500 crore and for branded rice, it is Rs 800 crore of which the company has 21 per cent market share.

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