Luby Transform (LT) code plays a vital role in binary erasure channel. This paper portrays the design techniques for implementation of LT codec using application specific instruction set processor (ASIP) design tools. In ASIP design, a common approach to increase the performance of processors is to boost the number of concurrent operations. Therefore, optimizations like strategy of input design, processor and compiler architecture are very useful phenomenon to enhance the performance of the application specific processor. Using Tensilica and OpenRISC processor design tools, this paper shows the response of LT codec architectures in terms of cycle counts and simulating time. Result shows that, the simulation speed of Tensilica is very high compared to the OpenRisc tool. Among different configurations of Tensilica tool, proposed ConnXD2 design took 1 M cycles per second and 135.66 ms to execute LT codec processor and XRC_D2MR configuration consumed only 9 iterations for successful decoding of LT encoded signal. Besides this, OpenRisc tool took 142K cycles and 6ms for executing LT encoder.