DS Group targets Rs 5,000-cr revenue from confectionery business in 5 years

The maker of Rajnigandha Silver Pearls and Pass Pass plans to continue its focus on Indian ethnic flavours to drive this growth

This report has been updated

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FMCG firm Dharampal Satyapal (DS) Group -- the makers of popular brands like Pulse, Pass Pass and Rajnigandha Silver Pearls -- has claimed to have surpassed Rs 1,000 crore revenue mark from its confectionery business in financial year 2023-24, and the firm has now set Rs 5,000 crore revenue target in the next five years.

The home-grown company plans to continue its focus on Indian ethnic flavours to drive its growth.

“We aim to transform the traditional unorganised Indian ethnic confectionary market into an organised market, being leading players with products like Pass Pass, Rajnigandha Silver Pearls, Pulse etc. That is where we want to continue to focus,” Rajiv Kumar, vice-chairman, DS Group told Business Standard.

 

While the market has grown at a CAGR of 9 per cent, the group’s confectionary business was ahead with a CAGR of 20 per cent in the last three years.

The company’s hard-boiled candy product Pulse is the largest contributor to the confectionary segment at 45 per cent. The candy brand has been a market leader for the last eight years.

“Going forward, we plan to leverage our existing distribution network and grow at a CAGR of 30 per cent over the next five years,” Kumar added.

The group, which has a distribution network spanning 26 lakh retail outlets, plans to expand it in the western and southern markets to enhance reach.

The company, which has outsourced manufacturing to third-party players, has no significant capital investment outlay.

“We would rather leverage on third party manufacturers with good quality control parameters. So instead of putting up a plant ourselves, we would rather invest in marketing, brand building, and innovation for the product,” Kumar added.

ALSO READ: DS Group to spend Rs 125 crore in FY25 to expand Catch Spices brand

The company also has new product offerings in the pipeline to drive growth.

“Innovation has always been our strength and we will keep working on that. We have some innovations in the pipeline, which also play on nostalgia, which is a big factor when it comes to the Indian ethnic confectioneries,” he further said.

The company is currently testing Pulse gol mol – an imli flavoured soft candy – which is currently in a testing phase in the eastern markets. The company also has in line coffee flavoured hard boiled candy and expansion of the LuvIt chocolate brand it acquired in June last year.

The company is also focused on sustainability, with a fleet of 800 electric vehicles to aid distribution and plans to grow it further. The group’s spice brand Catch had also crossed the Rs 1,000 crore revenue mark last month.

ALSO READ: DS Group to spend Rs 125 crore in FY25 to expand Catch Spices brand