DS Group hits ₹10,000 crore milestone as food and beverage push powers FMCG leap

Diversified FMCG player Dharampal Satyapal (DS) Group has crossed the ₹10,000 crore revenue milestone in FY 2024-25, putting it in the ranks of India’s top 15 fast-moving consumer goods companies. The 95-year-old firm, known for brands like Catch, Pulse, Pass Pass and Rajnigandha, has seen consistent growth over the last few years, with its Food & Beverage (F&B) segment emerging as the key driver.

The group has charted a compound annual growth rate (CAGR) of 16% over the past three years, with the F&B segment alone growing at a higher CAGR of 19%. The segment now contributes 42% to the company’s total revenue, overtaking other legacy verticals such as mouth fresheners (38%) and hospitality (3%). Tobacco, once the group’s core business, now contributes less than 10%.

This shift has been years in the making. “At one time, tobacco was 100% of our revenue. Even till 2000, it was the bulk of it. But today, it’s less than 10% as we diversified into confectionery, beverages, spices and more,” shares Rajiv Kumar, vice chairman of DS Group.

Path to ₹20,000 crore

Looking ahead, DS Group has set a target to double its revenue and reach ₹20,000 crore by 2029, coinciding with its centenary year. This goal is underpinned by expansion in its F&B portfolio, distribution push and continued investment in modern retail and e-commerce.

The company is betting big on its wide distribution network. “We have 150 super stockists, 5000 distributors, and reach 15 lakh outlets directly and another 35 lakh indirectly. That makes us one of the most widely distributed FMCG players in India,” Kumar says.

“In the last few years, Indian consumers have changed significantly,” he adds “They are no longer just buying cheaper alternatives—they are consciously choosing better quality products across categories. And they are willing to pay for it.”

Although, the overall FMCG sector anticipates another subdued quarter due to persistent weak urban demand and higher input costs, the scale of their distribution, adds the vice chairman, has allowed the group to reach consumers across urban and rural India with both premium and mass-market products. While urban demand has held steady, it’s tier 2, tier 3 and rural markets that have shown strong traction. For example, the group has expanded aggressively in rural India with small-sized spice packs and products priced as low as ₹1 and ₹2, while also pushing aspirational lines like its Catch sprinklers and new chocolate offerings under the ‘LuvIt’ brand.

Post-COVID, a combination of rising disposable incomes, increased health awareness, and the shift toward convenience has reshaped spending habits. “People want the best in their category now,” Kumar notes. “This mindset shift—especially after COVID—has pushed even rural consumers toward branded, hygienic goods.”

The Catch sprinkler, for instance, which is positioned as a premium product has seen the highest growth among their product lines in the last five years. “Keeping it on the dining table is as much about quality as it is about aspiration,” he adds.

Furthermore, the acquisition of South India-based chocolate brand LuvIt nearly 2 years ago, originally backed by Mitsui and Goldman Sachs, marked DS Group’s foray into a traditionally MNC-dominated segment. “No Indian brand has truly succeeded in chocolates. If we can make it work, we’ll be the first Indian player to crack this category,” says Kumar, adding that it’s an “aspirational” bet for the group.

He acknowledges the challenges in chocolates — including consumer brand loyalty and the need for premium quality — but said the group is restructuring the brand and portfolio with a long-term view. “We’ve exited copycat products and are focused on differentiation. It’s a difficult category to innovate in, but we’ll try.”

Hospitality and sustainability push

While the hospitality segment accounts for just 3% of DS Group’s revenues, it’s also on the company’s expansion radar. With six operational hotels and 1,000 rooms, the group plans to double its capacity to around 2,000 rooms in the next three years, backed by an investment of ₹1,000 crore.

On the sustainability front, Kumar said DS Group has been ahead of regulatory curves in areas like packaging. “We were among the first to use recyclable plastic in our packaging. In spices, we largely use paper cartons. Wherever technology allows, we’re pushing for sustainable formats,” he adds. The group’s headquarters is a LEED-certified building with zero discharge, and all manufacturing units are being upgraded for energy and water efficiency.

Balancing legacy with new-age competition

Despite growing competition from D2C brands and digital-first companies in urban markets, Kumar says DS Group doesn’t see its legacy status as a disadvantage. “Each product we launch is differentiated. Pulse disrupted the candy market by targeting 7-70 age group. Similarly, our ethnic tastes and premium positioning have helped us retain consumer loyalty,” he adds.

While newer companies have backing from venture funds and deploy extensive technology, Kumar notes that DS Group has ramped up its digital capabilities too — including implementation of SAP, demand planning systems, and training via IIM professors. While AI is still a buzzword and often confused, the group is using machine learning and analytics in demand planning and supply chain.

DS Group is also strengthening its presence across general trade, modern retail, e-commerce and quick commerce channels. “Consumer journeys today are fragmented. We need to be wherever the customer is,” Kumar says.

With rising disposable incomes, changing consumption patterns post-COVID, and a shift toward branded and hygienic products, DS Group is betting that its transition from a tobacco-led company to a broad-based FMCG player will continue to pay off — both in the rural hinterlands and the new-age digital economy.