New Delhi: FMCG major DS Group, popularly known for making Rajnigandha pan masala, on Tuesday announced the acquisition of The Good Stuff Pvt Ltd, which owns the LuvIt Chocolate and Confectionery brand.

"This acquisition is a strategic move to grow and strengthen the Group’s Confectionary portfolio, whilst widening its distribution reach across grocery and other retail outlets," the company said in a statement.

The Good Stuff Pvt Ltd (formerly known as Global CP Pvt Ltd) was earlier owned by Goldman Sachs and Mitsui Ventures, according to the media release.

DS Group entered into the confectionery business in 2012 and has a strong assemblage of popular non-chocolate brands like Pass Pass, Pulse, Chingles, Rajnigandha Silver Pearls, Maze, and the recent partnership with luxury Swiss chocolate brand Läderach for its maiden launch in India.

“DS Group has been focusing on increasing its presence in the confectionary segment for the last many years. Acquisition of LuvIt was a strategic decision to enhance our confectionary basket and enter the Chocolate segment with an impressionable footprint. This would enable us to expand our product portfolio thereby reaching new consumers and markets too," said Rajiv Kumar, Vice Chairman, DS Group.

The Good Stuff Pvt Ltd was founded in 2014 and the company had a turnover of more than Rs 100 crores (F/Y 21-22) with nearly 90% contribution from the brand LuvIt.

"The Indian confectionery market is valued at approximately Rs 23,000 crores, out of which, chocolates as a category dominates with almost 60% share at Rs 13,800 crore. The Indian chocolate market is expected to grow at a CAGR of 6.69% till 2028," said DS Group quoting an industry report.

(With UNI inputs)