At the heart of the Base of the Pyramid (BOP) strategy as popularized in books
by Stuart Hart and C.K.Prahalad, is the understanding that the world’s four
billion poorest people form the ‘base’ of the global economic pyramid. This
‘base’ has an enormous economic potential that is largely overlooked by
multinational companies.
Charity alone is not sufficient to sustainable improve the position of the
poorest section of the world’s population. The BOP strategy presents both
these people and companies such as DSM with a win-win situation. DSM develops
sustainable business in the BOP that benefits both parties; for DSM there are
economic returns and for the poverty stricken there is a high impact on
sustainable economic growth. A BOP strategy reduces poverty and simultaneously
increases DSM’s potential consumers by 4 billion people.
One such DSM initiative is the
Nutrition Improvement Program which is dedicated to improving human health
and prosperity by eliminating micronutrient malnutrition, also known as
‘hidden hunger’.
Base of the Pyramid fits in with our strategic aim of increasing our presence
in emerging countries such as Brazil, Russia, India and China.
DSM has started three concrete ‘Base of the Pyramid’ projects in India this
year. The development of economic activities involving the four billion people
in the poorest parts of the world – the ‘Base of the Pyramid’ – will be a
source of growth and a sustainable way of improving these people’s economic
and social potential. The three projects in India will be focused on three
topics: increased production of milk, better nutrition and the development of
sustainable construction materials.
