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The Dutch firm said this morning it would reorganise its company structure and consider "divestment and partnering" the areas which no longer fit into its new plan.
Chairman of DSM managing board Feike Sijbesma said the reorganization was to take advantage of some of the major global trends affecting society today, including ageing population and consumer demands for healthy eating.
He said: "The choices we have made are on the belief we are working in an area where we can deliver lots of growth."
The move pushes nutrition to the forefront of DSM, along with pharmaceuticals, and indicates that not only is the nutrition industry rich pickings for companies, but that DSM will be aiming to push even more products on the market. The firm is clearly confident of getting a good return in this area.
The announcement came after the company finished its mid-term evaluation of the five-year plan, Vision 2010. The new "accelerated" Vision 2010 plan is aimed to "give us the ambition and urgency to capture [the market] potential. By increasing our focus on these specialty areas of our business and freeing up resources for innovation and acquisitions, we believe this program will generate significant future value for our stakeholders," Sijbesma added.
DSM has also increased its predicted growth for operating profit from €790m to €820m for full year 2007.
To reach organic sales growth of five per cent DSM also said further accusations in the nutrition and pharma industry would be made. Sijbesma said he was confident total group sales from innovation would reach €1bn. At least €400m is expected to come from nutrition products.
He said: "It is a lot. It is a billion and it has to come from new things which weren't there in 2005."
Just yesterday NutraIngredients.com revealed how DSM was set to launch a casein ingredient aimed at regulating glucose levels in type-2 diabetics in response to the rise in worldwide incidences.
Both nutrition and pharma will come under the Life Sciences department, with performance materials and polymer intermediates falling under the Material Sciences category. Base chemicals and materials will consist of special products, fertilizers and elastomers.
The Vision 2010 set out a list of points DSM is aiming to achieve, with a target for organic sales growth to reach more than five percent up from its three to five per cent original prediction. Innovation across all sectors is still scheduled to achieve €1bn growth. Growth in China is expected to rise from an original prediction of $1bn (€700m) to $1.5bn (€1bn).