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DS Group plans to milk dairy retail biz
Financial Chronicle, Kolkata, June 18, 2015

The Rs 6,500 crore diversified Dharmapal Satyapal Group (DS Group) is planning to enter the retail kiosk format to expand its dairy business.

The group, which recently forayed into the fast growing dairy business, has already notched up a turnover of nearly Rs 205 crore from this vertical, which is nearly 3 per cent of its overall group turnover. At present, DS Group’s dairy range includes ghee, skimmed milk powder, whole milk powder, pasteurised cream, white butter, UHT milk, cow’s ghee, fresh milk, chaach, dahi, flavoured milk and dairy whitener.

The company has also put up a state-of-the-art manufacturing facility at Reengus, Rajasthan with a capacity of 4 lakh litre per day. “Being in the dairy business, we will eventually have to adopt the retail kiosk model or the booth sales format, particularly when we reach critical mass in the fresh products segment. It’s not very easy to put in place the right kind of cold chain. Besides, they have to be close to the manufacturing base,” Bhavna Sood, senior vice president and official spokesperson of the company, told Financial Chronicle.

Significantly, almost 20 per cent of Mother Dairy’s business comes from booth sales.