LT Foods, the India-based rice producer, plans to consolidate its international operations to create a “leaner” business structure.
The board of directors reached an agreement yesterday (19 August) to consolidate the overseas operations through the transfer of shares from its wholly-owned subsidiary LT Foods International UK to LT Overseas North America, another wholly-owned subsidiary, the company said in an announcement to the local stock exchange.
The transfer will be conducted at “fair value as determined by an independent merchant bank”, the firm added. LT Foods, based in Gurgaon, Haryana, owns the rice brands Daawat, Royal and Heritage.
LT Overseas North America houses the US operations of LT Foods and accounted for 36% of the group’s revenues in the year ended in March. LT Foods International serves the European market and generated 6.4% of annual revenues.
“The transfer is a first step towards the long-term goal of the company to consolidate its global businesses under one entity, thereby making its overseas business structure leaner,” the company said.