DS Group's Entry into Food and Beverages Sector
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Case Details:
Case Code : BSTR024
Case Length : 10 Pages
Period : 1998 - 2002
Organization : DS Foods
Pub Date : 2002
Teaching Note : Available
Countries : India
Industry : Foods, Beverage and Tobacco
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Background Note Contd...
Getting cooking salt out of a 1-kg bag, and putting a portion into a shaker, was an inconvenience for the workingwomen.
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By the early 1990s, Catch, as a brand, had achieved the distinction of having made it to the up market Indian dining tables. In 1991, 100 gms shaker packs of Catch black salt, garlic salt, chat masala,5 garam masala,6 and turmeric powder were introduced. In 1998, Hi Tech launched sambhar powder.7
The costlier commodities such as pepper, garlic salt and chat masala were launched in 50-gm shaker packs (See Table I for price). In the same year, white pepper was also launched at Rs 93 per 100gm shaker pack. However, of the total Catch brand sales of Rs.250 million in 1998-99, Catch salt alone accounted for Rs
100 million (See Exhibit II).
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In late 1998, with the launch of DS Foods, the Catch brand was transferred to it
from Hi Tech. In October 1999, DS Foods launched Catch mineral water.
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Within a year, the product generated sales of Rs 100 million in volume, of which Rs 50 million was accounted for by exports.
Exports were mainly to the US, Europe and West Asian countries. Catch was the only Indian 'natural spring water' and was positioned in the premium segment (See Table II for various brands in the segment).
It was the only brand in India to get National Sanitation Foundation (NSF) certification for meeting the quality and safety standards set by the US Food and Drug Administration (USFDA). |
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