INDIA: LT Foods eyes further tie-ups with PepsiCo

By Michelle Russell | 17 August 2012

LT Foods will produce, process and pack PepsiCo’s Kurkure rice snack brand in India

LT Foods will produce, process and pack PepsiCo’s Kurkure rice snack brand in India

Delhi-based LT Foods has said it will explore the possibility of further tie-ups with PepsiCo, following a deal this week for the manufacture and packaging of the food giant's Kurkure rice snack brand in India.

The Indian food manufacturer yesterday (16 August) announced a deal that will see the company produce, process and pack PepsiCo's Kurkure rice snack brand for the local market.

LT Foods, known for its Daawat Basmati rice brand, said the venture will allow the company to "embark on a new venture of engaging [our] manufacturing, processing and packaging facilities for a brand other than [our] own".

"The company is also exploring production of other products with PepsiCo, such as oats," a spokesperson told just-food.

A new facility has been opened as part of the deal, under Daawat Foods, a majority-owned subsidiary of LT Foods, the spokesperson confirmed. Located at Kamaspur, Haryana on the outskirts of Delhi, the plant has a capacity of 796 tonnes per month.

Vijay Arora, chairman and managing director of LT Foods, said of the partnership deal: "During the stabilisation period of 90 days, PepsiCo would be training our workforce. The commercial run at the plant has already begun. This is mainly to fill the gap between demand and supply for the brand."

The tie-up will entail LT Foods being paid conversion charges - a combination of return on investment and operating cost.

Sectors: Commodities & ingredients, Emerging markets, Snacks

Companies: PepsiCo

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