The Hindu Business Line : DS Group plans to invest Rs 250 cr in non-tobacco business

THE Rs 750 crore Dharampal Satyapal Group is in expansion mode. Known for brands such as BABA chewing tobacco, Rajnigandha pan masala, Pass Pass mouth freshner and Catch spices, the group is now keen to develop its non-tobacco business.

Thus, on the horizon is a foray into areas, including packaged fruit juices under brand name Catch, end-to-end production of rubber thread for the readymade garment industry, a new packaging unit and even a condom brand of its own!

"Not only will we consolidate our position in each product segment, the group is also keen to diversify into several new areas. In all, about Rs 250 crore investment will be made in the first phase of expansion," President, Mr Ashok Aggarwal told Business Line here.

He said the Group is putting up a Rs 75 crore project in the north-eastern State of Tripura - the second largest rubber producer - for manufacturing rubber thread. With technological collaboration from Italy, this project is expected to go on-stream soon and will enable the Group to establish backward linkages for effective quality and price control.

"While the first phase will see Rs 75 crore investment in the rubber project, this will be scaled up to Rs 250 crore eventually," Mr Aggarwal said.

In yet another collaboration with the Tripura Government, the Group is planning to launch its own brand of condoms to cater to both, the export as well as domestic market and project details are still being worked out.

Also, the Group has decided to invest Rs 75 crore in setting up a packaging unit in Guwahati, of about 3,000-4,000 tonne per annum installed capacity, to fulfil in-house needs for packaging material. In the F&B segment, the company plans to extend the Catch brand to snacks and even to packaged fruit juices. "Catch is a Rs 75-crore brand at present and our aim is to make it a Rs 500-crore brand over the next three years. To begin with, we are gearing up for a foray into packaged juices with a Rs 100-crore project which is expected to commence next fiscal."