Dharampal Satyapal Group (DS Group) confirmed the acquisition of The Good Stuff, owner of chocolate and confectionary brand LuvIt.
According to media reports, with this acquisition, the DS Group aims to expand its packaged foods portfolio. It is also expected to strengthen the presence of the company in the chocolates and confectionary space.
Backed by Goldman Sachs and Mitsui Ventures, The Good Stuff was formerly known as Global CP Pvt Ltd.
The company could scale the LuvIt brand to Rs 500 crore, up from the current Rs 100 crore, said Rajiv Kumar, vice chairman, of DS Group.
He further added that over a five-year period, its chocolates and confectionery business could grow fivefold to touch Rs 5,000 crore, up from Rs 900 crore now.
DS Group forayed into the confectionary business back in 2012 and its portfolio comprises companies like Pass Pass, Pulse, Chingles, Rajnigandha Silver Pearls, and Maze.
The company also recently partnered with a Swiss luxury chocolate maker for its entry into India.
According to a Hindu BusinessLine report, Kumar said, “The group had been looking to enter the chocolate space for some time to tap into the fast-growing category.”
He further said that “India has low per capita consumption for chocolates compared to evolved markets, so there is huge headroom for growth. With this move, we have a complete portfolio with Laderach in the luxury chocolate space and LuvIt positioned in the mass segment. It is one of the few homegrown chocolate brands. It has a turnover of Rs 100 crore and an established presence in the Southern region.”
Reports suggest that LuvIt will offer a wide variety of rich milky chocolate, crunchy wafers wrapped in chocolate, fruit, and chocolate-flavoured lollipops, eclairs, sugar-panned chocolates, and choco snacks.
For the time being, the company is going to rely on third-party manufacturing for the LuvIt brand. However, for the luxury chocolate brand Laderach, the company is exploring options to open up offline stores.