DS Group’s FMCG push to reshape its brand DNA, tobacco share set to decline

New Delhi: As the Dharampal Satyapal Group continues to pivot toward becoming a leading full-fledged FMCG conglomerate, it is also gradually redefining its relationship with its legacy tobacco business. 

Once synonymous with chewing tobacco and pan masala, products that dominated its revenue streams for decades, the group has now repositioned itself, with tobacco contributing less than 10% to its turnover as of FY25. Its strategic priorities are beginning to take sharper shape. 

On whether the group plans to exit the tobacco business altogether, Rajiv Kumar, Vice Chairman of DS Group, clarified:

"We are not planning to exit, but our focus is more on the F&B side, and hence the contribution of tobacco will automatically come down in terms of percentage."

This measured response highlights a larger shift underway at the company: a clear intent to double down on food and beverage categories, brand building, and consumer engagement, moving away from a manufacturing-heavy identity to one built on marketing excellence and retail strategy.

DS Group’s transformation into a consumer-centric FMCG player is not just about portfolio expansion—it’s about realigning its operating model. The company has invested heavily in strengthening its marketing, sales, and distribution arms over the past few years. 

Its acquisitions of premium F&B brands and consistent rollout of non-tobacco product lines are part of a broader roadmap that positions DS as a lifestyle-forward, modern Indian conglomerate.

From its origins in chewing tobacco and pan masala, the company is now pouring more resources into packaged foods, beverages, confectionery, and wellness products. This evolution reflects broader industry trends where legacy businesses are reshaping themselves in line with health-conscious, millennial-driven consumption patterns.

"We are also investing more into sales, marketing and distribution... around Rs 2,000 crore (investment) is expected on the marketing side," Kumar said.

Homegrown FMCG firm is looking to double its turnover to Rs 20,000 crore by 2029, when it completes 100 years. To achieve this, the group is planning a cumulative minimum investment of up to Rs 3,000 crore, according to Rajiv Kumar.

Hospitality, and food and beverages (F&B), wherein acquisition opportunities are being explored, are the focus areas for expansion of the group as it looks to meet the 2029 target. 

The group, earlier known for its chewing tobacco products, expects that segment’s contribution, less than 10% of its overall turnover of Rs 10,000 crore in 2024–25, to remain small, though it won’t exit it completely.

"We just closed 2024–25 with a turnover of Rs 10,000 crore plus. We are now among the top 10 to 15 FMCG companies in India. In the next five years, by 2029, when we complete 100 years, we are setting a target for ourselves to make it Rs 20,000 crore," said Kumar.

In FY25, 42% of the turnover came from food and beverages, 38% from mouth fresheners, with the tobacco segment contributing less than 10%—a far cry from its near-total share three decades ago. Hospitality accounted for around 3% of revenue.

When asked about the key focus areas for expansion in the next four to five years, Kumar said, "Our focus is hospitality. Today we have six hotels with around 1,000 rooms. In the next three years, we plan to double this room number and reach 2,000 with around 10 to 12 hotels."

The second area is food and beverages, which, Kumar said, has significant growth potential. "We are coming out with multiple products in the spice and confectionery categories," he added.

DS Group’s portfolio currently includes brands such as Catch, Pulse, Pass Pass, Silver Pearls, Ksheer, Rajnigandha, Ovino, L'Opera, Le Marche, Society Of Salad, Birthright, LuvIt, Chingles, Golmol, and Namah, playing in different consumer segments.

Asked how much investment DS Group is planning to make in the next four to five years to fulfill its 2029 ambition, Kumar said it is difficult to project an exact figure, but the group has already announced plans to invest Rs 1,000 crore in the hospitality segment in the next three years to double room capacity.

The group currently has 50 manufacturing sites, including those of third-party outsourcers, some of which exclusively manufacture for it. Kumar noted that investment in manufacturing will be minimal compared to what’s planned for sales, marketing, and distribution.