Page 34 - DHC-new 25 sept[53209]

Deccan Priorities The five imperatives

Healthcare

for our ensuing commercial model.
• Continue to invest in strengthening innovative, Consolidating Digital consumer sales channel launched
leading-edge FMCH product pipeline in 2017
Having launched Stay Young, our key focus is digital
• Continue to nurture the existing 5 customer marketing and social media marketing. This opens a
acquisition and income channels whole new aspect to our future consumers, mainly aiming Investing in extending geographic
at young adults. The internet savvy generation is one of footprint, with sharper market focus.
• Increase geographic foot print the fastest growing markets. A rapidly increasing market
which is expected to reach $45 billion by 2021. In high opportunity emerging markets, we have steadily
• Balance equipment and upgrade automate to remain established our geographic footprint over 16 states in India.
cost competitive Building on preparatory work done on export DHC We will continue establishing relationships in the existing
-UsA; DHC -UK; DHC-Kenya; DHC-Tanzania and expand geographies. One of the key initiatives that is driving our growth
• Increase transparency at all levels direct export sales income. is a strategic choice of geographies we footprint, especially
Currently we are exporting and collaborating with venturing into geographies of Kenya, Tanzania, Mozambique,
• Strengthen corporate governance businesses internationally. The previous year has been DHC North America and South America.The geographic spread,
fruitful for our growth and development, having signed this strength, gives us tremendous optionality to continue
• Imbibe new technology new prospects and going through the registration of to grow and remain profitable in the geopolitical and
more new products. The growth of this channel will economic volatility.
• Continuously skill and upgrade manpower augment future expansion in many countries. FUTURE
• Introduce “self-care” range of FMCH products Balancing, automating, and upgrading the existing We will prioritise investment in A&P and CAPEX in
these geographies, along with acceleration of our capabilities
in segment of pain relief; burns; constipation; manufacturing and packing lines and systems to and talent.
gas; acidity; cough; cold; dandruff; genital increase output and lower cost of manufacture.
hygiene; fungal skin care With the ongoing production, we are determined These new geographies will contribute to nearly half of
to depicting higher output as the capacity of our growth.
• Strengthen our digital presence. In this digital machinery in production is meeting with production
age, the consumers have been more interested demands. We need to focus on balancing the
or more informed with information on healthcare bottle necking of the systems, this helps
10% of google searches are healthcare related in producing efficiently and meeting
the market demand, yet maintaining
• Create health for customers and wealth for stakeholders manufacturing standards. The
quality of the product is
Greater Aggression on the existing 3 sales channels with maintained rigorously with
greater focus on 4X sales growth - Deccan Wellness a firm grip on delivery,
Crusade – DTC channel - increasing geographic manufacturing and the supply
footprint increasing customer acquisition. chain process. This ensures that all
regulations are maintained at all times.
Currently we run 3 channels
• Traditional B2B - Reaching Patients and Backward integration to manufacture/
in-house consumers extract materials for formulations to
• Deccan Wellness Crusade (B2C) improve quality, cost and delivery lead-
• Technology – Know-how and Manufacturing Sale times High value critical – CAPeX.
We plan to continue these channels aggressively, and We identify and select approved
focus on DWC channel which is our highest growing farmers and traders who handpick
channel. It is highly profitable for our brand to progress, and procure our materials so that
helping us grow and . It gives us a strategy to learn the they meet the standard operating
market better, helping us sell innovative products which in procedure, these sourced materials are
turn helps us broaden our horizon and our geography to put through a rigorous process of testing
make better lifestyle products. and approving the samples so that they
can proceed to performance trials and
regulatory clearances. This process is
usually time consuming and expensive.
Our goal is to reduce delivery while we
increase efficiency, cost, dependency and
time span for procuring the materials

Improve procurement techniques direct from
farm and manufacturer to reduce procurement
cost and delivery lead time of material..
At present most of the materials are procured from
traders. Buying materials from the manufacturers helps
improve operational efficiency, reduce transportation
cost, decreasing the management of inventory and
helping mitigate risks.