But doesn't the Balsara (homecare) acquisition seem like a move outside the herbal space?

The homecare portfolio is the only product line that operates outside the herbal space; it is an acquired line-up. In our core FMCG portfolio, which includes personal care and health care products, Dabur India continues to operate in the herbal and ayurvedic space. All new product developments in our core categories also continue to operate in the herbal and ayurvedic arena. Dabur has a huge herbal heritage and we intend to continue operating on the herbal platform in the future.

Why did Dabur exit the pharma business?

IT was a strategic decision by the Burman family. The family is happy to have created significant shareholder value through this business in a short span of time. The proceeds from the divestment of Dabur Pharma will go into family investments. There are several options we could look at -- insurance being one. Going forward, we need to re-evaluate our entire portfolio before we invest elsewhere.

You have forayed into health and beauty products. Why?

Dabur recognized a gap in the health and beauty retail space in India. There's a growing need for quality service and store environment in that space. With no major player, moving in now would give us an early mover advantage.

The Indian consumer has come of age. But the shopping experience here has not kept pace with this change. Even though retail outlets have mushroomed across the country, most of them still do not offer consumers the kind of shopping experience that people in the rest of the world are used to.

Dabur intends to tap the growth prospects in both the retail market and the health and beauty segments. Our USP will be an unique store environment and a diversity of products that will be on offer at the stores. Dabur has set up a wholly owned subsidiary, H&B Stores, which is in the process of establishing a pan-India chain of specialty retail stores in the beauty, health and wellness sphere. The first of these retail outlets, branded new u, opened its doors to customers in Delhi in March 2008. With new u, we are committed to bring a world-class shopping experience to India. We have already established six new u outlets and are expanding its presence to more cities.

While these stores are targeted at women, they seek to create a fun and fashionably colorful environment that is not alienating to non-core customers -- particularly men. The stores will be affordable and classy and will provide all the top mass-market brands. The product mix at the stores will cover pharmacy and OTC (over the counter), personal care, baby care, cosmetics, general merchandise and confectionery. Beauty and wellness products are key parts of the stores, with sizeable shelf space allocated to both leading Indian and international brands operating in this space. The new u stores offer the entire range of beauty, health and wellness products under one roof. In the future, we also intend to have a private label presence.

Dabur India is investing $4 million into this venture, and is confident that the venture will report profits in its fourth year. Why did Dabur outsource its entire IT infrastructure?

To ensure a constant flow of IT talent -- even during phases of expansion. Since we planned for rapid expansion, IT had a critical role to play. If we want to continue being on the leading edge of technology, the people we need will always be in high demand. Attrition could be a huge problem and we would not be able to maintain bench strength. But, an outsourcing partner can.