Lt foods (daawat)

When I look this number in past, I thought so. But again when you look into the product range LT Foods offers, You will find the difference.

Incase of KRBL, It is pure play basmati rice[as of one year ago]. They buy basmati paddy age it, sell it. Even for KRBL, not all rice are aged for 2 years. That’s why you will see inventory days near to 1 year and not 2 years. Be their local sales or export their, rice remains same, process remains same.

Whereas when it comes to LT Foods, The business model of brand Daawat alone is comparable with IndiaGate. Which is equally aged, equal quality

And sub brands like Tibar, Dubar, Rozana, Devaaya are either rice length is short which you will not get premium anyway and these are not necessarily aged less. Some of these brands are sorted out rice which are less in length from 2 year aged rice.

Now when it comes to why LT foods inventory days are less, The Brand Royal does not deal only in basmati but also other rices like Jasmine rice, for which they import from the sellers in thailand. So ageing is done by millers in thailand and not by LT foods, so there is no inventory days, other business like organic and convenience also needs much less inventory days.

In short, Other segments of LT foods except brand Daawat pulls down the Inventory days. I agree to the point IndiaGate commands a premium but that is because brand perception not because of quality/ageing [To validate this, I am from Tier 3 town in tamilnadu, till 2 years back i have no idea that a brand called Daawat exists, on other hand we buy indiagate regularly] In comparison done by you, compare indiagate rozana with Daawat Rozana Gold, you will find MRP matching

Disc: Bullish on both KRBL and Daawat, Invested in Daawat