DS Group eyes Rs 5,000 crore sales from confectionery business in 5 years
He further said the group plans to accelerate the confectionary business with a CAGR of approximately 30 per cent over the next 5 years through organic and inorganic growth.
Homegrown FMCG firm Dharampal Satyapal Group is eyeing Rs 5,000 crore revenue in the next five years from its confectionery business having crossed the Rs 1,000-crore mark in 2023-24, according to a senior company official.
The group which has popular brands such as Pulse, Pass Pass, Rajnigandha Pearls, Chingles, Pulse Natkaare and LuvIt in its confectionery category, is looking to increase sales outlets to around 50 lakh in India in the next five years, up from 26 lakh at present.
"Our confectionery division has grown by over 20 per cent in the last three years while the industry has grown at 9 per cent. We have crossed the Rs 1,000-crore sales turnover mark in 2023-24. We are aiming at Rs 5,000 crore in the next five years," Dharampal Satyapal (DS) Group Vice Chairman Rajiv Kumar told PTI.
He further said the group plans to accelerate the confectionary business with a CAGR of approximately 30 per cent over the next 5 years through organic and inorganic growth.
When asked about investments, he said for manufacturing there won't be much as it is outsourced to third parties across India.
He, however, said the spends on advertising and promotions would be increased depending on requirements. The group had spent Rs 100 crore in FY24 on advertising for the confectionery category.
"We will be increasing our presence in South India. In the next year we will double our outlets to at least 50 lakh outlets from the current 26 lakh and the focus areas will be the tier II and III cities and rural markets," Kumar said.
Currently, the company has a dominant position in North and East India, he said adding, "we are expanding presence in South and West India".
In terms of growth drivers going ahead, he said the company will continue to maintain its leadership position in the Hard-boiled Candy (HBC) and Indian ethnic confectionery (IEC) segments, besides driving up new segments such as chocolate.
"Looking ahead, we aim to grow our presence in the chocolate segment while strategically expanding our leadership position in the Indian ethnic confectionery category with innovative products," Kumar said.
As part of the group's sustainability initiative, he said DS Group is using over 800 electric vehicles in the distribution of confectionery products and will look to increase it further going forward.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Top Gold ETF vs Top Large Cap Mutual Fund 10-year Return Calculator: Which has given higher return on Rs 11 lakh investment; see calculations
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
05:43 PM IST