OLAM

OLAM
Olam is a global integrated supply chain manager of agricultural products and food ingredients. Edible nuts, Fibre and REVENUE spices and Focuses on four types of agricultural commodities: wood beans, 14% products, 21% Edible nuts, spices and beans Confectionary and beverage ingredients Food staples and packaged foods Confectionary Food staples and beverage and packaged Fibre and wood products ingredients, foods, 25% 39% Headquartered in Singapore, Olam's operations are diversified across 20 products, 65 countries, and 12,300 customers.

Business Model
Integration of supply chain activities from sourcing (upstream) and processing (mid-stream) to distribution (downstream) enables it (Olam International) to capture a higher share of the profit pool

Upstream
Plantations Perennial Tree Crops Farming - Annual Corps Forestry Concessions Dairy Farming Agri-inputs - Fertiliser

Origination

Midstream

Downstream

Sourcing / Origination Primary Processing Logistics Trading / Marketing

Secondary Processing

Contract Manufacturing Private Label Manufacturing Distribution

Upstream

Midstream
Cocoa
Coffee Almonds Cashews Peanuts

Origination

Downstream

Dairy Grains Packaged Foods Palm Rice Sugar

Products and services

Spices

Dehydrated Vegetables

Tomatoes Specialty Vegetables Sesame Cotton Fertilizer

Wood
Wool

Rubber

Business Strategy
Optimize and extract full value from Olams core origination Grow into new adjacent businesses building on the latent assets and capabilities that we have

Selectively expand into value chain adjacencies

Pursue global integrated value chain leadership

FIVE STRATEGIC THRUSTS

Downsize/exit/prune unattractive businesses, origins, profit centres and activities

SWOT analysis
Strengths
Sound business mode Strong track record Well diversified High barriers to entry Resilient to commodity cycles

Weaknesses

Illiquid nature of certain products

Opportunities

Threats
Geopolitical risk Refinancing risk in light of credit crunch Counter-party risk Slowing demand Supply-side risk

Adjacent products and markets Mergers and acquisitions