Companies
DS Group acquires LuvIt chocolate maker The Good Stuff
Summary
This acquisition is in line with the Noida-based group’s plans to grow its confectionary portfolio, while widening distribution across grocery and other retail outletsNew Delhi: Dharampal Satyapal Group (DS Group) on Tuesday announced the acquisition of The Good Stuff Pvt Ltd, backed by Goldman Sachs and Mitsui Ventures. Formerly known as Global CP Pvt Ltd, the company sells chocolates and confectionary under the LuvIt brand.
DS Group declined to share the deal value.
Rajiv Kumar, vice chairman, DS Group, said the company could scale the LuvIt brand to ₹500 crore, up from the current ₹100 crore. Over a five-year period, its chocolates and confectionery business could grow five fold to touch ₹5,000 crore, up from ₹900 crore now, Kumar added.
DS Group entered into confectionary business in 2012. Its portfolio comprises brands such as Pass Pass, Pulse, Chingles, Rajnigandha Silver Pearls, Maze. It recently partnered Swiss luxury chocolate brand Läderach for its India entry. The group also has interests including a large pan masala business apart from a presence in other consumer goods categories such as spices and bottled water under the Catch brand.
The Good Stuff was started by Arumugham Mahendran, a former executive with Godrej Consumer Products, in 2014. Goldman Sachs and Japanese conglomerate Mitsui, through associated entities, came on board as investors having put in more than ₹500 crore in the company. Mahendran stepped down from the company in 2018.
This acquisition is in line with the Noida-based group’s plans to grow its confectionary portfolio, while widening distribution across grocery and other retail outlets. This deal will strengthen the group’s presence in southern India. LuvIt sells chocolate, crunchy wafers, fruit and chocolate flavoured lollipops, eclairs, sugar panned chocolates and choco snacks.
“DS Group has been focusing on increasing its presence in the confectionary segment for the last many years. Acquisition of LuvIt was a strategic decision to enhance our confectionary basket and enter the chocolate segment with an impressionable footprint. This would enable us to expand our product portfolio thereby reaching new consumers and markets too," Kumar said.
The Good Stuff reported a turnover of over ₹100 crore last fiscal, with nearly 90% of sales driven by brand LuvIt.
The Indian confectionary market is valued at approximately ₹23,000 crore.
DS Group was founded in 1929. It sells mouth fresheners, food and beverages, confectionery products; it also has interests in the hospitality, agri, and luxury retail businesses. Its portfolio of packaged consumer good brands includes Rajnigandha, Catch, Pulse, FRU, Maze, Ksheer, Pass Pass, Baba, Tulsi.
