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Dharampal Satyapal Group

Indian conglomerate From Wikipedia, the free encyclopedia

Dharampal Satyapal Group
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The DS Group (Dharampal Satyapal Group) is an Indian multinational corporation and fast-moving consumer goods (FMCG) conglomerate.[2][3]

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The group was founded in 1929 its headquarters are based in Noida, India. The group operates in various industries, including breath mints, food and beverages, confectioneries, agriculture, and luxury retail.[4][5][6]

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History

Dharampal Sugandhi founded the DS Group in 1929 in Chandni Chowk, Delhi. Started as a perfumery business, it produced items such as incense sticks, rose water, and tobacco.[7] In 1958, Satyapal Sugandhi[8] launched the BABA tobacco brand, marking the company's expansion.[9]

The group diversified into food and beverages with brands like 'Catch Salt & Pepper' (1987) and 'Catch Natural Spring Water' (1999).[10] Confectionery brands such as Rajnigandha, Pass Pass, and Pulse Candy are also part of the DS Group.[11]

In 2019, the group entered the luxury sector by acquiring a stake in the Lalique Group. In 2023, it introduced the Swiss chocolate brand Läderach to India and also acquired LuvIt chocolates.[12][13] The DS Group has a presence across diverse sectors, including food, beverages, agriculture, and luxury.[14]

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Controversies

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Plastic ban violation

In 2011, the Supreme Court of India issued a contempt notice to DS Group for violating its order against using plastic sachets to sell products. The company had attempted to bypass the Supreme Court's ban on selling products in plastic pouches by falsely labeling them as 'only for export', while they were actually sold domestically at a price of ₹6.[15]

Tax evasion

In 2015, officials from the Directorate General of Central Excise Intelligence conducted searches at 25 locations of DS Group's companies across several states, based on gathered intelligence. The investigation revealed that fake invoices for declared goods, labeled as "sandalwood compound or oil", were issued to Messrs Dharampal Satyapal Limited through dummy factories in the HaridwarRoorkee area, Kanpur, and Lucknow. Owners of these dummy supplier firms admitted to generating bills for DSL on a commission basis without manufacturing or obtaining clearance for declared goods. Allegedly, DS Group evaded taxes by claiming inadmissible Cenvat credit, totaling 90 crore (US$11 million).[16]

In 2019, the company was involved in a 900 crore (US$110 million) scam, which revolved around the avoidance of value-added tax (VAT) on tobacco products. As per the state Criminal Investigation Department, the directors of Dharmpal Satyapal Limited and the Gujarat trade were implicated in importing gutka and other tobacco products into the state without proper documentation, selling them in the market, and thereby avoiding the payment of VAT.[17]

Sealing of Guwahati factory

In 2022, the Mumbai Crime Branch closed down the company's Guwahati facility after discovering that a Pan masala product produced by the company in Guwahati was discovered in the possession of a dealer in Solapur (Maharashtra), where the manufacturing, selling, and storage of Pan masala are prohibited.[18] However, within a fortnight, the factory was de-sealed following a Guwahati High Court order.[19]

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Litigations

In 2016, the Supreme Court imposed a fine of 4 crore (US$470,000) on Dharampal Satyapal Limited for breaching commitments and causing delays in resolving a 2009 tax dispute. DSL contested a 244 crore (US$29 million) tax demand related to Central Excise Duty, briefly applied to the Settlement Commission without reaching an agreement, faced dismissal of its petition by the Delhi High Court, and sought relief from the Supreme Court in 2013, securing a stay order against the tax demand.[20]

References

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