DS Group to Focus on Non-Tobacco Business

Source from:  Finacial Express 08/08/2011

New Delhi: Shifting gears and moving away from its tobacco business, the R1,860 crore diversified Dharampal Satyapal (DS) Group, promoter of Rajnigandha pan masala, now aims to double its turnover riding on the high-growth rate clocked by its non-tobacco business. The company is all set to explore the expansion of its Catch brand in ready-to-cook and ready-to-eat segments including cooking pastes market besides focussing on hotels, cement, thermal power and steel manufacturing in the coming years. Currently, nearly 35% of group's revenue come from its tobacco business (Baba, Tulsi, Rajni brands) while the rest comes from non-tobacco business. In future, the revenue contribution from DS Group's non-tobacco business is set to rise further as it changes gear to open more hotels and offer diversified fast moving consumer goods. But it is the Catch brand which will continue to show high growth, said Rajiv Kumar, vice chairman, DS Group. "We should grow at 25-35% of average annual growth rate over next five years. We will continue to focus on our core areas but will also be open to any new business opportunities," Kumar told FE. In the past five year, the Catch brand of DS Group has grown nearly four-fold to cross R220 crore revenue-mark along with its popular mouth freshner Rajnigandha and Pass-Pass. Next is betting big on hospitality (five hotels in the pipeline), agro-forestery and steel manufacturing among others which would help the group cross R4,000 crore turnover in next 60 months. In the last five-years, the DS Group's turnover jumped over 60% mainly led by over 110% growth of its Catch range of spices, club soda, spring water and thirst quenchers. On its hospitality business side, the DS Group is in the final stages of roping in the Radisson brand for its 5-star hotel coming up in Kolkata. The company also plans to add a second hotel in Kolkata which will be in the budget segment. For its five-star hotel in Kolkata, the DS Group is in the final stages of roping in Radisson, company sources said. The company also plans to add the second hotel in Kolkata which will be in the budget segment. The company is also focussing on sandalwood production in Madhya Pradesh, which will be used to diversify their product portfolio. Enditem