diff --git a/src/python/dm/common/utility/ldapLinuxPlatformUtility.py b/src/python/dm/common/utility/ldapLinuxPlatformUtility.py
index 4db4845577f4b25d4d44ae666ed51701a4b01f98..0b5a06ae18d00a768f553b7876cd516c2b6f7542 100755
--- a/src/python/dm/common/utility/ldapLinuxPlatformUtility.py
+++ b/src/python/dm/common/utility/ldapLinuxPlatformUtility.py
@@ -165,10 +165,25 @@ class LdapLinuxPlatformUtility:
             logger.error('Could not add user %s to group %s: %s' % (username, groupName, ex))
             raise InternalError(exception=ex)
 
+    @classmethod
+    def createLocalGroup(cls, name):
+        """ Create local group if it does not exist. """
+        logger = cls.getLogger()
+        try:
+            group = grp.getgrnam(name)
+            logger.debug('Group %s already exists' % name)
+            return
+        except KeyError, ex:
+            # ok, we need to create group
+            pass
+        logger.debug('Creating group %s' % name)
+        cmd = '%s %s' % (cls.GROUPADD_CMD, name)
+        cls.executeSudoCommand(cmd)
 
     @classmethod
     def addLocalUserToGroup(cls, username, groupName):
         """ Add local user to group. """
+        createLocalGroup(groupName)
         logger = cls.getLogger()
         logger.debug('Adding local user %s to group %s' % (username, groupName))
         cmd = '%s -a %s %s' % (cls.GPASSWD_CMD, username, groupName)