We are still working on finalizing the plans, but the focus is going to be on the spices in the segment, says Managing Director Rajeev Kumar
Expecting a robust growth potential in the Indian food and beverages market, homegrown business house, D S Group, owner of chewing tobacco and mouth freshener brands like Rajnigandha, Baba and Paas-Paas, is looking to expand its presence in the F&B segment.
The Rs. 1,200 crore group, already present in the F&B segment through its Catch brand of salt, spices and mineral water, is planning to launch a number of new products under the same brand – which would mark a shift in the Group’s core focus away from the tobacco and premium pan masala products.
While the company is yet to finalise its investment plans for expansion in the F&B segment, it is aiming to focus on the spices segment, where its “Catch” brand has already established a strong foothold.
“We are still working on finalizing the plans, but the focus is going to be on the spices in F&B segment, “DS Group Managing Director Rajeev Kumar said.
The group produces mineral water under the ‘Catch Natural Spring Water’ which is bottled at its plants in Himalayas, while other brands include – Catch Club Soda, Tonic water and Catch spring range.
Currently, tobacco accounts for about 50 percent of the total revenues of the group while the rest comes from F&B, packaging and hospitality business among others.
The 80 year old group is a leader in the chewing tobacco segment and premium pan masala, with popular brands like Baba Tulsi and Rajnigandha and Paas-Paas in the mouth freshener category.
“However, going forward, the group would concentrate more on the F&B segment and was not planning to launch any new brands of tobacco,” a company spokesperson said.
The company has already diversified its presence over the past five years into sectors like FMCG, packaging, hospitality, rubber and education.
Asked about the overall plans for the group in the next 2-3 years, Rajeev Kumar said: “Our plans involve expanding in areas that we have already diversified into and looking for projects in infrastructure segment.
“The Indian economy is booming with opportunities and the environment is certainly productive, though bureaucratic hurdles slow down the productivity, but the overall outlook is promising,” he added.
The Group has also ventured into the hospitality sector and has extensive plans of launching five star properties in larger cities and heritage properties at tourist destinations.