LT Overseas North America Inc, California a wholly owned subsidiary of LT Overseas Limited has acquired stake in a US-base rice firm Kusha Inc. LT Overseas is owner of popular Daawat brand of basmati rice.

Kusha Inc. imports premium quality Basmati rice from India. The firm has revenues of approximate USD 40 million. However, the company did not disclose the financial details regarding the deal.

VK Arora, Chairman and Managing director of LT Overseas said, “With a growing demand for basmati rice in the US, this is the perfect time to tap the market. The acquisition is a milestone towards building up a global agro-product company. ”

He further added, “With the acquisition of Kusha Inc, LT Overseas will get to leverage the distribution network of the company to expand its operation in the US and sell Daawat brands there. ”

Presently, LT Overseas has a market share of 7% in the US, but with the acquisition, it will increase to about 51%, estimated at 80,000-90,000 tonnes.

The firm presently holds market cap worth Rs. 178 crore, PE Ratio of 6.82; EPS of 11.73 and BV of 53.88. The firm had registered a net profit of Rs 6 crore for the quarter ended September 2007 as against Rs. 4 crore in same quarter of last year. At 12:07 PM, the share was trading at Rs 80.25 on NSE, up by 4 % compared to previous close of Rs. 77.20. The stock has touched an intraday high of Rs. 83 and low of Rs. 79.