DS Group targets Rs. 5,000 crore confectionery sales in five years

Mumbai: Dharampal Satyapal Foods (DSFL), the confectionery division of DS Group, has achieved an impressive milestone, surpassing Rs. 1,000 crores in annual sales turnover for FY 2023-24. DS Group proudly positions itself as the second largest player in the non-chocolate confectionery market. The company has established a strong presence in the Hard Boiled Candy (HBC) and Indian ethnic confectionery (IEC) segments. Over the past three years, DSFL has experienced remarkable growth, boasting a compound annual growth rate (CAGR) of over 20 percent, significantly outpacing the industry average of 9 percent. Looking ahead, the company aims to accelerate its growth to approximately 30 percent CAGR over the next five years through both organic and inorganic expansion.

DS Group’s confectionery products are available in over 26 lakh retail outlets, both directly and indirectly, dominating the market and outpacing its closest competitors in the HBC and IEC segments. The company attributes its success to innovation and a comprehensive route-to-market strategy, which includes an omni-channel presence in modern retail, e-commerce, and quick commerce. Leveraging its deep understanding of flavors, fragrances, and consumer preferences, DS Group’s confectionery division is poised to achieve a sales turnover of Rs. 5,000 crores over the next five years through strategic growth initiatives.

Currently, DS Group has a strong foothold in North and East India and is actively expanding its presence in South and West India. Rajiv Kumar, Vice Chairman of DS Group, expressed his enthusiasm about the company’s achievements, stating, “We are thrilled to announce the ₹1,000 crore sales turnover of the confectionery arm of DS Group in the financial year 2023-24. This achievement is a result of our strategic focus on enhancing indigenization, expanding our product portfolio, and having one of the largest distribution networks in the country. 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.”

In line with its commitment to sustainability, DS Group has deployed a robust fleet of over 800 electric vehicles for the distribution of its confectionery products, contributing to a cleaner environment. The Group is dedicated to responsible expansion and has planned significant investments in the ESG (Environmental, Social, and Governance) space. DS Group aims to operate with the highest professional and ethical standards, leading with integrity and delivering impact responsibly while maintaining the trust of its partners, colleagues, and society.

DS Group’s culture of innovation and commitment to quality is evident across all segments of DSFL’s business. The company has crafted compelling brand narratives and distinct consumer propositions for its key brands like Pulse, Pass Pass, Rajnigandha Pearls, Chingles, Pulse Natkaare, and the recently acquired LuvIt. Despite the competitive nature of the hard-boiled candy market, DSFL’s brand “Pulse” has maintained its position as the market leader for the past eight years. In the competitive Indian Ethnic Confectionery segment, DSFL stands out with its diverse offerings. The “Pass Pass” blend caters to those who enjoy a mix of flavors, while “Rajnigandha Pearls” offers a unique, single-ingredient experience.

Through continuous innovation, DSFL aims to transform the Indian Ethnic Confectionery category into a branded and organized market, providing consumers with a wide array of options to suit their preferences. Leveraging its deep understanding of modern India’s flavors and tastes, the company is contemporizing its ethnic product portfolio while focusing on Gen Z habits. DSFL is strengthening its modern trade channels, capitalizing on influencer marketing, and harnessing new-age technologies to amplify product reach. This approach highlights the corporate ideology of ‘Create What is Worth Creating.’

In summary, DS Group’s confectionery arm is poised for significant growth, driven by innovation, a deep understanding of consumer preferences, and a commitment to sustainability and ethical business practices. The company's strategic initiatives and robust distribution network position it well for continued success in the confectionery market.