Synopsis:
KRBL’s governance issues and non-core expansions have weakened its market position, allowing LT Foods’ focused strategy on rice and value-added products to drive higher revenue and investor confidence.
Leadership positions are never guaranteed in today’s fast-paced business environment. Companies that fail to adapt, maintain transparency, or implement effective strategies risk losing their competitive advantage, whereas more agile competitors seize the opportunity to strengthen their position. This shift not only alters market dynamics, but also serves as a reminder that long-term growth requires resilience, governance, and timely decision-making.
Industry Overview
The packaged food and staple industry, particularly the rice segment, has experienced consistent growth, owing to rising global demand, expanded export opportunities, and an increasing preference for branded products.
As consumers become more health-conscious and brand-oriented, companies in this space are focusing on quality, innovation, and global reach to remain competitive. However, the industry is also characterized by intense competition, narrow margins, and the need for strong governance, as even minor errors can shift market leadership and allow competitors to gain ground.
KRBL Ltd
With more than 130 years of experience, KRBL Limited is the world’s leading producer of basmati rice. Its fully integrated operations span the entire basmati value chain, from contract farming and seed development to processing, packaging, branding, and marketing. Being the first integrated rice company in India, it uses cutting-edge technologies, provides a wide range of products, and has a strong presence in both local and international markets.
KRBL, best known for its flagship brand India Gate, specializes in the production and sale of a wide range of basmati rice varieties. Its portfolio includes premium India Gate Basmati along with other rice types such as Sella, Mogra, Dubar, and various regional and specialty rice products.
Shift in Market Leadership
For years, KRBL, the company behind the iconic India Gate rice brand, was the undisputed leader in the basmati market. Back in FY20, its revenue of Rs. 4,499 crore was ahead of LT Foods’ Rs. 4,135 crore.
But in just five years, the tables have turned. Today, LT Foods, owner of Daawat and Royal brands, has surged ahead with Rs. 8,681 crore in FY25 revenue, leaving KRBL behind at Rs. 5,594 crore.
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Reason for KRBL’s decline
KRBL has been experiencing boardroom turbulence. The latest blow came when Anil Kumar Chaudhary, an independent director, resigned, citing a lack of transparency, incomplete board meeting records, and unjust write-offs.
This comes after previous issues, including the Enforcement Directorate’s 2021 arrest of KRBL’s joint managing director in the AgustaWestland case. Unsurprisingly, such governance lapses have eroded investor confidence.
At the same time, KRBL has been aggressively expanding into non-core markets such as edible oils, spices, and atta. India Gate Uplife oils FY25 sales were Rs. 50 crore, with a target of Rs. 200-300 crore in three years. However, building a new supply chain is resource-intensive and distracting. Instead of consolidating its dominance in rice, KRBL appears to be spreading itself too thin.
LT Foods Strategic Move
LT Foods Limited, founded in 1980 and headquartered in Gurugram, India, is an FMCG company engaged in the specialty rice and rice-based foods business. Its product portfolio includes basmati and other premium rice varieties, organic foods and ingredients, as well as ready-to-eat and convenience cooking products.
The company markets its offerings under well-known brands such as DAAWAT and Royal, and has a strong presence across nearly 80 countries, including India, the United States, Europe, the United Kingdom, the Middle East, and the Far East.
LT Foods, on the other hand, chose a more disciplined path. While keeping rice at the core, it has steadily added value with ready-to-cook meals, organic rice, and health-focused variants. Its ready-to-eat and ready-to-cook business rose 21 percent last year to Rs. 188 crore, while organic grew 41 percent. LT Foods plans to cross Rs. 10,000 crore in revenue in four years, versus Rs. 7,000 crore in FY23.
Written by Akshay Sanghavi
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