The confectionery division of DS Group has grown at over 20% CAGR over the past three years, outpacing the industry growth rate of 9%. The company plans to accelerate its business with an estimated CAGR of 30% over the next five years through both organic and inorganic growth.

With one of the largest distribution networks in the country, DS Group’s confectionery products are available in over 26 lakh retail outlets, both directly and indirectly. The company holds a close dominant market share in the Hard-Boiled Candy (HBC) and Indian Ethnic Confectionery (IEC) segments as compared to its competitors. This growth is driven by innovation and a route-to-market omnichannel strategy, including modern retail, e-commerce, and quick commerce channels.

Aligned with its sustainability goals, DS Group has deployed a robust fleet of over 800 electric vehicles for the distribution of its confectionery products, contributing to a cleaner environment. Additionally, DSFL has successfully transformed the Indian Ethnic Confectionery category into a branded and organized market, providing consumers with unique options that cater to their preferences.

Leveraging its deep understanding of the flavors and tastes of modern India, DS Group is strategically modernizing its ethnic product portfolio. The company focuses on Gen Z habits, strengthens modern trade channels, capitalizes on influencer marketing, and harnesses new-age technologies to amplify product reach, embodying its corporate ideology of ‘Create What is Worth Creating’.

Commenting on the milestone, Rajiv Kumar, Vice Chairman, DS Group, said, “We are thrilled to announce the ₹1,000 crore sales turnover of our confectionery arm in FY 2023-24. This achievement results from our strategic focus on enhancing indigenization, expanding our product portfolio, and maintaining one of the largest distribution networks in the country. Looking ahead, we aim to grow our presence in the chocolate segment while strategically expanding our leadership position in the Indian ethnic confectionery category with innovative products.”

Currently, DS Group holds a strong position in North and East India and is strategically expanding its presence in South and West India. The company aims to achieve a sales turnover of Rs 5,000 crore over the next five years.

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Devendra Shah, Chairman of Parag Milk Foods Ltd, expressed his pleasure at the company’s performance, highlighting the milestone of crossing INR 3,000 crore in consolidated revenues. The profit after tax stood at INR 91 crore, complemented by healthy operating cash flows. Shah noted that while milk procurement prices have been favorable, the company is prepared to maintain and improve its margin profile despite potential price increases.

The company’s growth has been bolstered by its strategic investments in modern trade and e-commerce channels, which have significantly contributed to overall revenue. The expansion of the value-added product portfolio and premiumization efforts have also enhanced the gross margin profile. Advertising and promotion expenses increased to 4.2% of revenue in FY24 from 2.5% in FY23, reflecting the company’s commitment to brand building.

In terms of core categories, Ghee and Cheese have seen continuous traction throughout the year and have posted a growth of 3.5 % YoY. The company’s in-house consumer brand ‘Avvatar’ is consistently growing at 100% CAGR for two years in a row. 

In addition to it, the General Trade, Modern trade & e-commerce posted a growth of 3% YoY, and 6% YoY, respectively for FY 24. Moreover, the average milk procurement of the company stood at 16 lakh liters per day; the average milk price stood at INR 33.8 per liter.

Parag Milk Foods’ premium brand ‘Pride of Cows’ continues to perform well, expanding its product portfolio and distribution footprint across seven cities. The Company is also expanding its Bhagyalakshmi Dairy Farm, a 100% subsidiary dairy farm that supplies exclusively to the Pride of Cows brand.

The Company has strengthened its brand equity reach by adopting impact marketing campaigns like participation in ‘Kaun Banega Crorepati’ (KBC), which enables the company to widen its reach in tier 2 and tier 3 towns and cities through brand messaging ‘Garv Se Gowardhan.’ The company’s brand ‘Go Cheese’ has also participated in shows like India’s Got Talent and has undertaken very focused print marketing.

Apart from this, some of the new developments in the company are: 

Entered into the Sweets category under the brand Gowardhan: The Company has forayed into the traditional sweet segment under the brand ‘Gowardhan’. Currently, the brand has seven delectable sweet ranges namely Kaju Katli, Malai Pedha, Kesar Pedha, Kaju Pista Roll, Mawa Gujiya, Mysore Pak, and Malai Modak. With an estimated branded market size of INR 7000-8000 crore, the Indian sweets market presents vast opportunities for growth and innovation.

Expansion in the International market: The company plans to incorporate a n wholly-owned subsidiary in Dubai, UAE. This strategic move aims to enhance the company’s global reach and streamline its supply chain operations

‘‘We would continue to enhance our industry-leading R&D capabilities and infrastructure to drive innovation and delight our consumers across the globe. With strong foundation in place, we are confident of posting industry leading growth and profitability ahead.” says Shah.

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In the March quarter, LT Foods posted revenue of Rs 2,092, crore, which is 14% higher than what it recorded in the corresponding period last year. Gross Profit stood at Rs 689 crore, up 13% YoY. Profit after tax at Rs 150 crore showed a 14% YoY growth.

The company’s three key segments – Basmati & Other Speciality Rice, Organic Food & Ingredients, and Ready-to-Eat (RTE) & Ready-to-Cook (RTC) –  collectively delivered an impressive 12% year-on-year growth. “Specifically, Basmati & Other Speciality Rice segments have continued to outperform, showing a remarkable 17% YoY growth. Our RTE & RTC offerings, tailored for modern consumers, gained considerable traction, and the segment contributed to our overall revenue with a 23% YoY growth. This consistent performance underscores our strategic focus on continuous investment on brands across geographies and innovation, which has significantly bolstered our domestic and international market position,” said Ashwani Arora, Managing Director & CEO, LT Foods.

He added that the market share of flagship brand, Daawat in India stands at 30% (MAT March’24; AC Nielsen Retail Survey Audit). At the same time, the number of households consuming LT Foods products grew by 10.2% (vs. branded package rice growth of 2.8%) to reach 50.22 Lakh households (Kantar Households Panel Branded Basmati Rice MAT March‘24).

Commenting on the company’s performance in its major overseas markets, Arora said that flagship brand Royal continues to command more than 50% market share in the United States. In the Middle East, the brand reported a growth of 42% whereas in Europe it is growing at 11%. “Globally, our premium segment grew by 9.7% during FY’24. This growth is a testament to our strong brand equity, well-entrenched distribution network, innovative product portfolio, and targeted marketing strategies,” said Arora.

Looking ahead, LT Foods aims at solidifying its position further in the core Basmati and Specialty Rice segment while continuing to strengthen its presence in the Organic Food and ingredients and the RTE & RTC segment as well.

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During the first phase of expansion, Hectar Global will focus on catering to the market demand in 2 categories: spices and pulse. These categories encompass a range of products including dry red chilies, turmeric, red lentils, chickpeas, and yellow peas.

Commenting on the expansion, Srinath Srinivasan, CEO, Hectar Global, said “We are excited about our new expansions in the Bangladesh market. As a nation, Bangladesh relies heavily on food imports, purchasing agricultural commodities worth US$15 billion every year. We are eager to introduce our services that will enable local food businesses and manufacturers to source their raw materials directly from global vendors. With our platform, coupled with our direct presence in Bangladesh, we offer our customers a unique advantage: the cost benefits of cross-border purchasing with the convenience of local transactions.” 

Describing his new pulse processing factory in Bangladesh, he says, ‘‘Our processing factory allows us to contribute more than just importing pulses into the market. The new facility enables us to add value and move a step further in the downstream supply chain. We have also introduced our brand of red lentils into the Bangladesh market, and have more commodities in the pipeline to strengthen our presence. By the end  of this year, we will expand our product portfolio to include non-basmati rice, maize, oilseeds, and sugar.” 

Presently, Hectar Global has a seven-member team in Bangladesh and actively seeks to expand its workforce by hiring individuals for sales, finance, and operations roles to support the ongoing expansion efforts.

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Prabhu Gandhikumar, the driving force behind the company, shared insights through media platforms highlighting innovative strategies that have propelled TABP’s success in a fiercely competitive market. Prabhu emphasized on the increased demand for beverages, particularly during the extended summer period in the country. He noted the success of recent product launches, such as the lemon salt beverage, which has garnered widespread popularity and led to repeat purchases nationwide.

In addition to the lemon salt beverage, another TABP offering gaining momentum is an energy drink priced at Rs 10. This beverage appeals to individuals seeking a caffeine boost in hot weather, providing a convenient alternative to traditional tea or coffee.

Prabhu also underscored the success of TABP’s veg biryani, which has become a top performer, accounting for nearly 40% of their sales. He also mentioned the upcoming projects for TABP including the introduction of Rs 5 ‘Podi Idli’, ready-to-eat noodles, and packaged bhel, catering to consumer demand for convenience and flavor.

Talking about the snack category, Prabhu said, “Our focus in snacks lies in replicating the emotion of staple foods like bhel, podi idlis, and biryanis, which are beloved by people at the bottom of the socioeconomic pyramid. Through extensive R&D, we aim to transform these traditionally unpackaged and labor-intensive dishes into affordable, packaged snacks priced at INR 5 and INR 10.”

Prabhu highlighted TABP’s commitment to affordability and accessibility, with a key focus on selling products at a price point of Rs 10 that resonates with price-sensitive consumers. This approach has helped TABP carve out a niche for itself in the market.

He also discussed the successful establishment of a plant in Odisha, made possible by government subsidies that have enabled TABP to expand its presence in the eastern market while creating employment opportunities for local communities.

Building on the success of the Odisha plant, TABP is now expanding into Gujarat, and West Bengal, and establishing a third-party unit in Assam, with a plant in Guwahati expected to commence operations by the end of the month.

Looking ahead, Prabhu outlined TABP’s growth targets, aiming to surpass the Rs 500 crore sales mark within the next two years. The company plans to deepen its presence in southern markets and expand into regions like Madhya Pradesh, Bihar, and Jharkhand.

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The strong performance can be attributed to Dabur India’s strong execution of brand strategy, increased premiumization efforts, and expansion of distribution footprint, coupled with the benefits derived from stringent cost reduction measures implemented throughout the fourth quarter and the entire fiscal year of 2023-24. 

The company’s operating profit exhibited an improvement of 13.9% during the quarter, with quarterly net profit surging by 16.2% to Rs 350 crore, compared to Rs 301 crore recorded a year ago. Q4 Consolidated Net Profit, on a like-to-like basis, witnessed a substantial upsurge of 22.7% to Rs 370 crore.

During the quarter, consolidated revenue experienced a robust 7.3% growth on a constant currency basis, reaching Rs 2,815 crore, representing a 5.1% increase on an INR basis compared to Rs 2,678 crore reported a year earlier.

Mohit Malhotra, CEO, Dabur India Limited, expressed satisfaction with the company’s performance, emphasizing the efficacy of Dabur’s brands.  He says, ‘‘We have been investing heavily in our brands, which have increased by 33%, to drive demand and also sustain the growth momentum. This has helped us deliver steady sales and profit growth in the fourth quarter despite multiple headwinds. We continued to execute our strategic playbook by driving operational excellence, delivering innovative and premium products, and expanding our retail footprint to build the foundation for long-term profitable, sustainable growth.”

Premium products account for 18% of Dabur’s portfolio, contributing to the overall growth trajectory. The FMCG business witnessed a volume growth of 5.5% for the full year, with key brands posting category-leading growth and gaining market share across 95% of the portfolio. Notably, Odomos, Chyawanprash, Hair Oil, and Honitus reported significant market share gains, reflecting the strength of Dabur’s brands.

Dabur’s investment in expanding its rural footprint has yielded substantial dividends, with rural demand outpacing urban demand. The company’s rural distribution network, which expanded by 22,000 villages to 122,000 villages during the fiscal year 23-24, has played a pivotal role in driving rural growth, resulting in a 400 bps increase compared to urban growth.

In terms of category growth, Dabur’s Oral Care penetration stands at  52%, with the toothpaste business reporting a notable 23% jump. The Digestives, Home Care, Shampoo, and Foods segments also demonstrated strong growth during the quarter.

Dabur also delivered a solid performance in the overseas markets, with the International Business reporting a Constant Currency growth of 12% in the fourth quarter and 16.4% for the full year 2023-24. During the quarter, the Egypt business grew by 63%, while Turkey business was up 39% and the Middle East & North Africa (MENA) markets posted a growth of 6.3%. The Sub-Saharan Africa business rose 23.8%.

The Board of Directors has recommended a Final Dividend of 275%, totaling 550% for the fiscal year 2023-24, in line with the company’s payout policy. This reflects Dabur’s commitment to delivering value to its shareholders while maintaining a strong financial performance.

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