Dharampal Satyapal Group

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Dharampal Satyapal Group
Company typePrivate
IndustryConglomerate company
Founders
  • Dharampal Sugandhi
  • Satyapal Sugandhi
HeadquartersNoida, Uttar Pradesh, India,
India
Area served
Worldwide
Key people
Ravinder Kumar (Chairman)
Rajiv Kumar (Vice-chairman)
ProductsMouth freshener, food & beverages, confectionery, dairy, premium flavored tobacco, luxury retail, hotels, restaurants
BrandsCatch, Pass Pass, Pulse, Rajnigandha Pearls, Rajnigandha, Ksheer, Chingles, FRU, Pulse Natkaare, Kewal, BABA, Tulsi, The Manu Maharani, Namah, Birthright, Uncafe, Le Marche, L’ Opera, Snack Factory, Nature’s Miracle and Not Just Nuts (NJN)
Revenue5,500 crore (US$690 million) (2023)[1]
Subsidiaries
List
  • Dharampal Satyapal Limited
  • Dharampal Premchand Limited
  • Dharampal Satyapal Sons Private Limited
  • DS Foods Ltd
  • DS Spiceco Private Limited
  • DS Chewing Products LLP
  • DS (Assam) Hospitality Limited
  • Kolkatta Hotels Limited
  • Manu Maharani Hotels Limited
  • DS Namah Hospitality Private Limited
  • DS Jaipur Hospitality Private Limited
  • DS Green Agrotech Private Limited
  • DS Global PTE Ltd
  • Nature’s Miracle LLP
  • DS Drinks & Beverages Private Limited
Websitewww.dsgroup.com

The DS Group (Dharampal Satyapal Group) is an Indian multinational corporation and an FMCG conglomerate with an Indian and international presence.[2][3] Founded in 1929 and headquartered in Noida, the group has diversified into mouth freshener, food and beverage, confectionery, dairy, hospitality, agri, and luxury retail, premium flavoured tobacco & other businesses.[4][5][6]

Leadership[edit]

The group is currently owned and managed by third-generation entrepreneurs Ravinder Kumar and Rajiv Kumar.[7][8][9]

History[edit]

1920-1930[edit]

Dharampal Sugandhi, the founder of DS Group, established a small perfumery store in Kothi kanhaiya lal, Chandni Chowk, Delhi in 1929. He created products using essential oils such as Agarbattis, Flavoured supari, Gulabjal, and Tobacco. Over time, his blended tobacco gained popularity.[10]

1931-1980[edit]

By the late 1940s Lala Dharampal Sugandhi’s son Satyapal Sugandhi, the founder of DS Group joined the business. The company introduced its inaugural tobacco brand called 'BABA' in India in 1958.[11] The company went on to launch a range of other brands, including 'Tulsi'.[12][13]

1981-2000[edit]

Diversification and expansion[edit]

‘Rajnigandha’ the Mouth Freshener and ‘Pass Pass’, the confectionery brand established new categories.[14][15]

The Group diversified in foods and beverages in the year 1987 with Catch Salt & Pepper sprinklers.[16][17][18] The beverage range was launched with ‘Catch Natural Spring Water’ in 1999, followed by mixers, clear flavored water, soft drinks, and juice beverages. [19][20]

2001-2020[edit]

The Group further added Rajnigandha Silver Pearls, Maze, Chingles, and Pass Pass Pulse to its confectionery vertical.[21][22][23]

The Group made its entry into the hospitality industry by acquiring properties in both the business and leisure segments.[16] Additionally, the Group has also invested in the Agri sector, which includes an agroforestry division, hydroponics using greenhouses to cultivate crops.[24][25][26][11][27][excessive citations]

2021-present[edit]

In 2023, DS Group collaborated with the luxury Swiss chocolate brand Läderach to introduce it to the Indian market for the first time.[28][29] Furthermore, in the same year, the group acquired The Good Stuff Pvt Ltd, which owns the chocolate and confectionery brand LuvIt.[30][31]

Presence[edit]

The corporate headquarters of DS Group is situated in Noida, Uttar Pradesh. The DS Group Headquarters (DSHQ), located in the National Capital Region (NCR), contains the company's main office, a research and development center, and manufacturing facilities for producing candies, flavors, fragrances, as well as edible gold and silver decorations.[32]

In 2022, the group's headquarters was awarded Leadership in Energy and Environmental Design (LEED) Platinum certification, under the US Green Building Council (USGBC) for being a green building.[33][34][35]

In 2023, the company attained net zero carbon status by achieving LEED Zero Carbon Certification of USGBC.[citation needed]

Corporate museum[edit]

DS Group Headquarters has a Corporate Museum called 'The Journey' that showcases its legacy and honors the founders. It is divided into five sections and offers an experiential museum experience.[36][37][38]

CSR[edit]

The Group’s CSR initiatives include a focus on water conservation, livelihood enhancement and education.

Water Conservation[edit]

In 2018, the DS Group started the Water Economic Zone (WEZ) project in Udaipur, Rajasthan. The project aimed to manage natural resources such as water and soil, with the main goals being to replenish groundwater and enhance irrigation capabilities in specific areas for the benefit of the local people.[39]

For their efforts in water conservation through the WEZ project, the DS Group received an award from Union Tribal Affairs Minister, Arjun Munda in the category of Environment Sustainability at the 20th FICCI CSR Awards.[39]

In this project, approximately 11,000 hectares of land in the Alsigarh and Kurabad areas of Udaipur district in Rajasthan were improved. Over 900 structures for rainwater collection were erected by DS Group, providing a total storage capacity of around 80 lakh liters. This allowed irrigation on 2,300 hectares of land. Presently, the group is engaged in water initiatives in six Indian states: Rajasthan, Madhya Pradesh, Uttar Pradesh, Himachal Pradesh, Uttarakhand, and Gujarat.[40]

Education[edit]

The Group launched a project called Creativity Adda in partnership with Shikshantar Andolan to promote skill-based education for students in an all-boys government-aided school (grades 6-12) in Darya Ganj, Old Delhi. This project was developed in collaboration with Commercial School and DS Group, based on the pedagogy of self-designed learning. It drew inspiration from various educational movements, including Gandhi's nai taleem, the democratic free school movement, unschooling/homeschooling, and Swaraj University in Udaipur, Rajasthan, which supports young people in crafting their learning journeys.[41]

SaluteTheFarmHER[edit]

In 2023, DS Group started the #SaluteTheFarmHER campaign to highlight the role of female farmers in agriculture. The initiative was conceived by Grapes and officially launched on International Women’s Day in March 2023. It aided more than 24,000 women farmers in 12 farming states.[42]

Controversies[edit]

Plastic ban violation[edit]

In 2011, the Supreme Court of India issued a contempt notice to DS Group for violating its order against using plastic sachets to sell products. The company attempted to bypass the Supreme Court's ban on selling products in plastic pouches by falsely labeling them as "only for export," despite being sold domestically at a price of ₹6.[43]

Tax Evasion[edit]

In 2015, officials from the Directorate General of Central Excise Intelligence conducted searches at 25 locations of the group's companies across several states, based on gathered intelligence. The investigation revealed a scheme where fake invoices for declared goods, labeled as "sandalwood compound or oil," were issued to M/s Dharampal Satyapal Limited through dummy factories in Haridwar-Roorkee, Kanpur, and Lucknow. Owners of these dummy supplier firms admitted to generating bills for M/s DSL on a commission basis, without manufacturing or obtaining clearance for declared goods. Allegedly, the group evaded taxes by claiming inadmissible cenvat credit, totaling 90 crore (US$11 million).[44]

In 2019, the company was again found itself involved in a 900 crore (US$110 million) scam, which revolved around the avoidance of value-added tax (VAT) on tobacco products. As per the state Criminal Investigation Department, the directors of Dharmpal Satyapal Limited and the Gujarat trade were implicated in importing gutka and other tobacco products into the state without proper documentation, selling them in the market, and thereby avoiding the payment of VAT.[45]

Sealing of Guwahati factory[edit]

In 2022, the Mumbai Crime Branch closed down the company's Guwahati facility after discovering that the Panmasala produced by the company in Guwahati was discovered in the possession of a dealer in Solapur (Maharashtra), where the manufacturing, selling, and storage of Panmasala are prohibited.[46] But, within a fortnight, the factory was de-sealed as per the Guwahati High Court order.[47]

Litigations[edit]

In 2016, the Supreme Court fined Dharampal Satyapal Limited 4 crore (US$500,000) for breaching commitments and causing delays in a 2009 tax dispute. DSL contested a 244 crore (US$31 million) crore tax demand related to Central Excise Duty, briefly applied to the Settlement Commission without reaching an agreement, faced a dismissal of its petition by the Delhi High Court, and sought relief from the Supreme Court in 2013, securing a stay order against the tax demand.[48]

References[edit]

  1. ^ "Milk, Pan Masala & Catch-22: DS Group & Its Sugar-coated FMCG Gambit". Forbes India. Retrieved 30 July 2023.
  2. ^ "DS Group partners with Swiss luxury chocolate brand Läderach". Afaqs.
  3. ^ Roy, Sidhartha (30 August 2009). "'Catch'-ing the right solutions". HindustanTimes.
  4. ^ "DS Group eyes 20-24% revenue growth this fiscal". Business Standard. 4 December 2016.
  5. ^ Matharu, Sonal (12 March 2022). "Inside story of how billionaires of big-brand pan masala industry got around an ad ban". ThePrint.
  6. ^ "DS Group to expand cold chain channel". The Tribune. October 19, 2015.
  7. ^ "The Pashas Of Luxury". BusinessWorld. 8 November 2014.
  8. ^ THOMAS, PRINCE MATHEWS (April 29, 2014). "Can DS Group Diversify Beyond Tobacco Like ITC Did?". Forbes India.
  9. ^ "Candy Rush: How Pulse Got It Right". Forbes India.
  10. ^ दीक्षित, मनीष (12 December 2017). "स्वाद और सुगंध का साम्राज्य". आज तक (in Hindi).
  11. ^ a b Roy, Sidhartha (30 August 2009). "'Catch'-ing the right solutions". HindustanTimes.
  12. ^ "BBA Industrial cum Educational Tour" (PDF). Tecnia Institute of Advanced Studies.
  13. ^ "Candy Rush: How Pulse Got It Right". Forbes India.
  14. ^ Tyagi, Neha (15 February 2016). "Pass Pass Pulse launches new guava flavour". The Economic Times.
  15. ^ "DS Group unveils new TVC for Rajnigandha - Exchange4media". Indian Advertising Media & Marketing News – exchange4media.
  16. ^ a b THOMAS, PRINCE MATHEWS (April 29, 2014). "Can DS Group Diversify Beyond Tobacco Like ITC Did?". Forbes India.
  17. ^ "DS Group's Entry Into Food and Beverages Sector". ICMRINDIA.
  18. ^ "DS Group hopes to 'Catch' up on growth with strategic plan". TheHinduBusinessLine.
  19. ^ Mohan, Ashwin (21 October 2016). "DS Group planning IPO for "Catch" brand postinternal rejig". The Economic Times.
  20. ^ "Can DS Group Diversify Beyond Tobacco Like ITC Did?". Forbes India.
  21. ^ Sarkar, John (19 April 2016). "DS Group's Pulse candy hits Rs 100 crore in 8 months, equals Coke Zero's record". The Economic Times.
  22. ^ "Pass Pass 'Chingles' in West Bengal market". Times Of India. July 30, 2005.
  23. ^ "DS Group's Pulse Candy: The sweet that has set the candy market's pulse racing - ET BrandEquity". ETBrandEquity.com.
  24. ^ "DS Group's dairy arm eyes new markets, targets Rs 350 cr turnover". www.thehindubusinessline.com. 30 March 2015.
  25. ^ Talwar, Bhuvnesh (31 May 2012). "May tie-up with local dairy farmers, says DS Group". The Economic Times.
  26. ^ Bureau, BW Online. "Rajni Gandha Pan Masala Makers Get Relief In Trademark Infringement Case". BusinessWorld.
  27. ^ "Tom Ford Women, Versace Collection to dress up India". Hindustan Times. 20 July 2016.
  28. ^ Khosla, Varuni (2023-02-28). "DS Group brings Swiss luxury chocolate brand Läderach to India". mint.
  29. ^ "ds group: DS Group partners with Swiss luxury chocolate brand Laderach". The Economic Times. Retrieved 2023-10-28.
  30. ^ "DS Group acquires LuvIt chocolate maker The Good Stuff". mint. 2023-06-06.
  31. ^ "DS Group acquires confectionery firm The Good Stuff". The Hindu. 2023-06-06. ISSN 0971-751X.
  32. ^ "Dharampal Satyapal group's headquarters gets LEED award for green building". India Today.
  33. ^ "FMCG firm DS Group awarded with LEED certification for green building". cnbctv18.com. 12 April 2022.
  34. ^ "Dharampal Satyapal group's headquarters gets LEED award for green building". India Today.
  35. ^ "Green initiatives: FMCG firm DS Group awarded with LEED certification for sustainable biz practices". TimesNow. 25 March 2022.
  36. ^ "'The Journey' corporate museum in Noida brings 88 year old legacy to life". NYOOOZ.
  37. ^ Surana, Shashank (2 September 2016). "Corporate museums showcase history of brands". The Asian Age.
  38. ^ "DS Group – Corporate Museum". mgsarchitecture.in.
  39. ^ a b "DS Group wins FICCI CSR Award in environment sustainability". India Today. Retrieved 2023-11-02.
  40. ^ "DS Group's Water Conservation Projects in Rajasthan improves Ground Water level phenomenally". udaipurtimes.com (in Hindi). 2020-03-21.
  41. ^ Jain, Manish. "Welcome To The Creativity Adda". BW Businessworld.
  42. ^ "DS Group launches #SaluteTheFarmHER initiative to recognize contributions of female farmers". The Times of India. 2023-04-04. ISSN 0971-8257.
  43. ^ "SC fury hits Rajnigandha pan masala co". The Indian Express. 2011-05-11. Retrieved 2023-11-10.
  44. ^ "Rajnigandha pan masala maker face alleged tax evasion probe". India Today. Retrieved 2023-11-10.
  45. ^ "Gujarat: Three held for Rs 900 crore VAT evasion scam". The Times of India. 2019-05-01. ISSN 0971-8257. Retrieved 2023-11-10.
  46. ^ "গুৱাহাটীস্থ DS গ্ৰুপৰ কাৰ্যালয়ত মুম্বাই আৰক্ষীৰ তলা". ETV Bharat News (in Assamese). Retrieved 2023-11-10.
  47. ^ "Assam: Dharampal Satyapal factory at Guwahati to be de-sealed- GHC directs". 2022-03-30. Retrieved 2023-11-10.
  48. ^ "SC imposes Rs 4 crore fine on makers of Rajnigandha paan masala". Hindustan Times. 2016-11-21. Retrieved 2023-11-11.