DS Group Aims to Double Turnover to Rs 20k Crore by 2029, Rs 3k Crore Investment on Anvil

Homegrown FMCG firm Dharampal Satyapal Group is looking to double its turnover to Rs 20,000 crore by 2029, when it completes 100 years, for which it will make a cumulative minimum investment of up to Rs 3,000 crore, according to its Vice-Chairman Rajiv Kumar.

Hospitality, and food and beverages (F&B) wherein acquisition opportunities are being explored, are the focus areas for expansion of the group as it looks to meet the 2029 target, Kumar told PTI in an interview.

Dharampal Satyapal (DS) group, earlier known for its chewing tobacco products, expects the segment's contribution, which was less than 10 per cent of its overall turnover of Rs 10,000 crore in 2024-25, to remain small but won't exit it totally, he added.

"We just closed 2024-25 with a turnover of Rs 10,000 crore plus. We are now among the top 10 to 15 FMCG companies in India. In the next five years, by 2029 when we complete 100 years, we are setting a target for ourselves to make it Rs 20,000 crore," he said.

In FY25, out of the Rs 10,000 crore turnover, 42 per cent is from food and beverages, 38 per cent from mouth fresheners with the tobacco segment accounting for less than 10 per cent, which was almost 100 per cent three decades back, Kumar said, adding the hospitality segment's contribution was at 3 per cent.

When asked about the key focus areas for expansion in the next four to five years, he said, "Our focus is hospitality. Today we have six hotels with around 1,000 rooms. In the next three years, we plan to double this room number and make it to 2,000 with around 10 to 12 hotels." The second area is food and beverages, which has a lot of scope, Kumar said, adding "we are coming out with multiple products in the spice and confectionery categories".

The group currently has brands such as Catch, Pulse, Pass Pass, Silver Pearls, Ksheer, Rajnigandha, Ovino, L'Opera, Le Marche, Society Of Salad, Birthright, LuvIt, Chingles, Golmol, Namah playing in different segments.

Asked how much investment DS Group is planning to make in the next four to five years to fulfil its 2029 ambition, Kumar said it is difficult to project an exact number but the group has already announced plans to invest Rs 1,000 crore in the hospitality segment in the next three years to double room capacity.

"We are also investing more into sales, marketing and distribution... around Rs 2,000 crore (investment) is expected on the marketing side," Kumar said.

The group currently has 50 manufacturing sites, including those of third party outsourcers, some of which exclusively make products for it, Kumar said, adding investment on manufacturing will not be that significant as compared to sales, marketing and distribution.

On whether the group will exit from the tobacco segment as it looks to establish itself as a leading full-fledged FMCG firm in the country, Kumar said, "We are not planning to exit but our focus is more on the F&B side and hence the contribution of tobacco will automatically come down in terms of percentage."