Dharampal Satyapal Group (DS Group), a privately held diversified enterprise, has acquired 50 per cent stake in Sweden-based Winnington AB for an undisclosed amount, The Hindu Business Line reported citing a top company executive.
“We are working on some interesting blends. Initially, these products are aimed at the European market. We may come up with new products in the future for the Indian market,” Rajiv Kumar, vice-chairman, DS Group, said to the newspaper.
Founded in 1929 as a tobacco products maker, DS Group has diversified into spices, dairy, food & beverages, hospitality, infrastructure, agro forestry, etc. The company has strengthened its presence in F&B category by entering the dairy and confectionery segment.
However, it is still known largely for its tobacco brands Baba and Tulsi.
The company earns over 40 per cent of its total revenue from chewing tobacco and mouth freshner products. It aims to grow company's turnover to a billion dollar by the end of current financial year.
The acquisition is aimed at coming out with next generation tobacco products which are healthier and safer because of the processing quality, the report added.
Hokerum-based Winnington operates in the field of snus, through umbrella brands Kickup and Loonic. Both the brands make and sell energy stimulants made with various ingredients such as ginseng and caffeine.
Meanwhile, Noida-headquartered DS Group hived off its spices unit into an independent company last year and it is planning to separate various other businesses from group into a small independent companies.
Kumar told BL that the group may rope in strategic partners for various businesses.
DS Group has more than 24 manufacturing units spread across Delhi, Noida, Himachal Pradesh, Assam and Tripura.
(Edited by Joby Puthuparampil Johnson)