LT Foods Limited to set up 5MW “rice husk” biomass plant in Punjab; Invest Rs. 1billion in Power

LT Foods Limited, formerly known as LT Overseas is the leading processor and exporter of packaged rice under the flagship brand “Daawat”. Launched in 1965, LT Foods today has a turnover of 10bn and has more than 6 subsidiaries which are vertically integrated. It. has worldwide presence with well known brands such as Daawat (one of the top 3 brands in India), Royal, Devaaya and Heritage. The company’s product portfolio extends to include brown rice, white rice, steamed rice, parboiled rice and organic rice with a very strong distribution network of more than a 100 in each state across India.

There is increasing demand for power. By producing our own power we will not only become self sufficient in meeting our power demands but we will also see this reflect in healthier bottomlines for LT Foods’ in the coming years. Moreover, we are happy that our venture into renewable energy will help in reduction of carbon foot prints.

According to this report, the company is planning to set up 5MW biomass power plant in Hoshiarpur district in Punjab and is planning to increase capacity with a total  investment of about Rs. 1bn planned. The company expects the first biomass plant to be operational by the second quarter of 2012.

The company has four manufacturing plants located across Northern India; two in Haryana (Bahalgarh and Kamaspur} with a capacity of 35MT/hour and 7MT/hour respectively, one in MP (Mandideep in Bhopal) with the capacity of 9MT/hour & one in Punjab (Khalra, Amritsar) with a capacity of 4MT/hour.

Given that they would be able to provide rice husk for feedstock from their own consumption, it would make a lot of sense for them to foray into biomass power production for their captive consumption and feed the excess power to  grid.

Just a couple of days back, Panchabuta had reported that Lakshmi Energy & Foods to augment biomass (Rice Husk) capacity from 30MW to 105MW. This will be an increasing trend to see user with feedstock available from their business foray in biomass power production as this eliminates the biggest risk the the project today.

As Panchabuta has often opined, the most important factor in the success of biomass projects in India has been the availability and price of feedstock. Further we believe that the availability of feedstock in certain cases varies even within the state and within a particular district and hence this has to be analyzed at a micro market level for the success of the project.


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