DS Group to spend Rs 125 crore in FY25 to expand Catch Spices brand

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Homegrown FMCG firm Dharampal Satyapal Group is planning to spend about Rs 125 crore this fiscal on advertising, marketing, stepping up distribution network in tier II and III cities and in quick commerce for its core brand Catch Spices, which has entered the Rs 1,000 crore club, a top company official said.

The group plans to introduce new products such as rasam powder and others to suit tastes in south India under its Catch Spices brand as it seeks to penetrate in the region as part of an overall strategy to grow at a CAGR of 30 per cent in the next five years.

"We are on the path of growth. In 2023-24 we crossed Rs 1,000 crore mark in salt and spices (under the Catch Spices brand) and we are optimistic about the category," Dharampal Satyapal (DS) Group Vice Chairman Rajiv Kumar told PTI.

However, he said it is a very tough category for any new entrant to get into.

"We have grown around 22 per cent CAGR over the years. In the last two years we have grown at a CAGR of 24 per cent. We plan to grow at a CAGR of 30 per cent in the coming years," he added.

Asked about investments to meet its growth target, Kumar said, "We have already invested quite a good amount in our manufacturing facility in the last couple of years. Now most of our expenditure will go into distribution and advertising and marketing."

DS Group spent Rs 100 crore on advertising and marketing in FY24.

This will further go up, depending on market and distribution needs, he said, adding, "it could be around Rs 125 crore for this financial year on advertising, marketing, distribution and quick commerce".

The group has a strong footprint in north India, and is penetrating through large distribution structures in other parts as well, he said.

"We were in metros and mini metros earlier. Now our focus is on second and third tier cities," he said.

Even in villages, the company's small sachets of Rs 5 and Rs 10 are finding traction, he said, adding, "that is giving us good response because of the advertising and marketing".

At present, he said the group has "7 lakh touchpoints and is present in 2 crore households in India".

On market expansion, he said it is an ongoing process as of now with a "big middle class" coming up.

"Our reach is going to increase further", and the growth will be fuelled from tier II and III cities and the rural population, he said.

"We are not very strong in south India but we are present there. We are coming out with new products such as rasam powder and other varieties that suit the southern palate," Kumar said.

On quick commerce, he said the group is witnessing a growth at a very fast pace on the channel.

"In the coming years, quick commerce will continue to grow fast and we think we will get a good mileage out of it. We are one of the best who are doing well in quick commerce because of the first mover advantage and the brand trust the consumer has," he added.

The Catch brand was introduced by DS Group in 1987 with the launch of a table-top salt sprinkler. Since then it has grown into a range of spices, blends and pastes across nine categories with more than 125 variants and 300 SKUs, the company said.