D.S. Group churns up expansion plans for dairy biz

Meenakshi Verma Ambwani New Delhi | Updated on August 12, 2013

The D.S. Group, which entered the dairy business in 2011 with an acquisition of a plant in Rajasthan, plans to expand its presence in the segment.

The company, which has already launched its ghee and skimmed milk powder under the Dairymax brand for institutional buyers, is now set to launch a retail brand.

“We will be setting up a cold chain. So far, we focussed on products such as ghee and milk powders, which did not require a cold chain and were for institutional marketing. Now, we will make fresh products and initially focus on States, such as Rajasthan,” said Rajiv Kumar, Vice-Chairman, D.S. Group. The company acquired a dairy plant at Reengus, near Jaipur, which can handle about four lakh litres of milk a day.

For dairy products, too, the company will be leveraging on its distribution channel, which it believes is well-entrenched through sales of its packaged beverages, mouth fresheners and spices under various brands, such as Catch and Pass Pass.

The company finished fiscal 2012-13 with Rs 3,362.57 crore in revenues. Its food and beverages business, which includes packaged beverages, spices and confectionary brands, contributes nearly 26.86 per cent to overall business. “By venturing into dairy, confectionary and powdered beverages, we have already corroborated our intention to establish ourselves as a serious player in the F&B category. These businesses will be our new growth drivers,” he said.

The company’s biggest business at present is mouth fresheners, contributing nearly 39.72 per cent to its overall revenues. “Our Pass Pass brand today is worth Rs 100 crore,” Kumar said, adding that it was building on new blends in the spices segment.

Aggressive exports is also on the cards. “We will target (international markets) more seriously for our entire portfolio of brands. Initially, we will be targeting Asian countries, as the demand for Indian spices and blends is growing,” he said.

The company, which has also diversified into hotels, is investing in four new properties. While its hotel Manu Maharani in Nainital is operational, it plans to open a resort at Jim Corbett and another five-star hotel in Guwahati, which will be managed by Radisson. “We are also building a hotel in Jaipur as well as another near the Kolkata airport,” Kumar added.

Published on August 12, 2013

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