The Dharampal Satyapal Group (DS Group) has forayed into chocolates to add to its portfolio of confectionaries, beverages, spices, mouth fresheners and hospitality.
According to Rajiv Kumar, vice-chairman of DS Group, the company has diversified from tobacco into other products and at present only 10% of the revenues come from tobacco products.
The DS group had been in talks with Swiss chocolate maker Läderach since 2019, but Covid disruptions delayed the process. Talks resumed post-Covid, resulting in an agreement in March 2023 to be the exclusive franchise partner of Läderach in India, Kumar said.
Läderach is already present in the direct-to-consumer category in India at prices ranging from Rs 1,050 to Rs 12,940 depending on variants, range and size.
“The ultra-rich grew by 11 times in the last decade. Tastes are changing, the market is moving to premium chocolates and they want the world’s best chocolates. They can now get fresh chocolates here instead of carrying them from outside,” Kumar said.
These chocolates would be available at the company-owned boutiques which would be located in premium locations. The first store will open in Delhi in two to three months. It would be a steady expansion, with 5-7 locations across the country opening within the next one to two years. It would be a gradual ramp up and in the next one to two years have 5-7 stores across the country. A shop-in-shop concept will also be added later.
DS Group is setting up cold chains to distribute chocolates across the country to maintain a temperature of 18-20 degrees. The company has already started selling online on the company’s own e-commerce platform which has started receiving bulk orders for corporate gifting, marriages and baby showers.
According to Kumar, India’s per capita consumption of chocolates was 140 grams while globally it was 900 grams per person while European consumption per person per annum was 8-12 Kg. He is confident that the brand will do well in India both in terms of top line and bottom line. The IMARC Group has estimated the Indian chocolate market was worth $2.4 billion in 2022 and was expected to reach $4.1 billion by 2028.