Could you please suggest best ways to convert a custom 3d model that is in .blend format to wikitude's .wt3 format.
I tried converting .blend to .fbx format, using the blender export utility. However, the texture and material details are lost.
Could you advice how to go about converting .blend files directly to .wt3?
As a first step, I would suggest you have a good look at our documentation here http://www.wikitude.com/external/doc/documentation/latest/android/assetsworkflow.html, where it explains how to work with 3D assets and some best practices / known issues with Blender.
If you still experience issues then please send over your 3d models.
I know this issue was a year ago but there is a video about texture and materials not being imported to Unity3D :
Maybe it will help others