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Kameda Seika forms joint venture with LT Foods to enter Indian snack market

FBR Staff Writer Published 25 November 2016

Japanese snack company Kameda Seika has formed a joint venture with rice specialist firm LT Foods to foray into the Indian market to manufacture and sell its rice-based snacks.

Kameda Seika and the Indian based LT Foods will be jointly investing $10m to sell the snacks, reported the Economic Times.

In a statement to the Bombay Stock Exchange, LT Foods said that its joint venture will begin manufacturing the snack range at a production plant in Sonepat in Haryana state in the next financial year.

The partnership will be a 51:49 venture between the Indian company and the Japanese company.

LT Foods managing director Ashwani Arora told the publication that as competing with PepsiCo and other brands is difficult in the snacking category, the company decided to come up with a new category altogether in association with Kameda Seika.

Arora added that the joint venture will utilize the distribution and logistics network of LT Foods and combine it with the proprietary manufacturing capabilities of Kameda in the rice-based snacking segment.

Arora has been further quoted by the publication to have said: “We intend to grow our business across value-added categories. Since our core competence is rice and Kameda is the global leader in rice-based snacks, the opportunity to scale up the business is huge.

“Consumers are looking for healthier snacking options and there are limited options in that space.”

LT Foods, the maker of the Daawat and Royal rice brands has its presence in over 65 countries. Last week, the rice specialist company opened a branch in Rotterdam in The Netherlands and has plans of establishing a plant in the city.