DS Group's Entry into Food and Beverages Sector

Based on the findings of this survey, the company targeted Catch at two segments - upper class Indian households in the metros, hotel, and restaurants, which would use the product in large volumes. The company built a national distribution network covering 1,600 premium outlets in India's A and B class cities. Catch Salt was launched with a price of Rs.6 for a 200 gm pack. At that time, Tata iodized salt, the market leader, was priced at Re1 per 1 kg pack and loose salt was priced at less that Re1. Analysts felt that there were bigger risks than what the price ratio would suggest at first glance. In India salt had always been a low-priced commodity, and many analysts felt that not many people would be willing to pay higher prices for it...

Explained Aggarwal, "Results showed that there was a need for a non-toxic, natural, herbal mouth freshener, since there was a vacuum in the market for that kind of product." DS Foods saw an opportunity in this segment and came up with Pass Pass, which they claimed did not have the health hazards of gutka (considered to be carcinogenic) or candy (bad for teeth). The ingredients included dried dates, dried-and-shredded coconut, saffron, silver-coated cardamom seeds, saunff and a herbal sweetener. The sweetener was imported and did not contain sugar or saccharine. Pass Pass was conceived as a product that would appeal to both adults and young people. The USP of Pass Pass was the health aspect and absence of synthetic essences or flavoring...