Dharampal Satyapal Group Explained

Dharampal Satyapal Group
Type:Private
Industry:Conglomerate company
Hq Location:Noida, Uttar Pradesh, India
Hq Location Country:India
Area Served:Worldwide
Key People:Ravinder Kumar (Chairman)
Rajiv Kumar (Vice-chairman)
Products:Mouth freshener, food & beverages, confectionery, dairy, premium flavored tobacco, luxury retail, hotels, restaurants
Brands:Catch, 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)
Revenue: (2023)[1]

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

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

History

1920-1930

Dharampal Sugandhi, the founder of DS Group, established a small perfumery store in 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

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]

Diversification and expansion

‘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

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. Additionally, the Group has also invested in the Agri sector, which includes an agroforestry division, hydroponics using greenhouses to cultivate crops.[24] [25] [26] [27] November 2023.

2021-present

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

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.

Corporate museum

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

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

Water Conservation

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.

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

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

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

Plastic ban violation

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

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 .[44]

In 2019, the company was again found itself involved in a 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

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

In 2016, the Supreme Court fined Dharampal Satyapal Limited for breaching commitments and causing delays in a 2009 tax dispute. DSL contested a 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]

Notes and References

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