Monday, July 26, 2021

Olam splits company into food ingredients and agri-business

Singapore’s Olam International is reorganising its business into two operating groups focussed on food ingredients and agri-business as it looks to unlock and maximise long-term value.

Consisting of the group’s cocoa, coffee, edible nuts, spices and dairy businesses, Olam Food Ingredients (OFI) will offer sustainable, natural, value-added food products and ingredients.

OFI partners with customers, leveraging its complementary and differentiated portfolio of “on-trend” food products, to co-create solutions that anticipate and meet changing consumer preferences as demand increases for healthier food that is traceable and sustainable.

Olam Global Agri (OGA), meanwhile, comprises grains and animal feed, edible oils, rice, cotton and commodity financial services, supplying food, feed and fibre to meet rising demand and a shift to protein-based diets.

The group said the plan will allow it to maximise long-term value and potentially carve out capital raising options – including IPO listings for both OFI and OGA.

Mr. A Shekhar has been appointed as the CEO of OFI and will therefore step down from his current role as Group Chief Operating Officer of Olam with immediate effect. Mr. Sunny Verghese will hold charge as CEO of OGA and Olam International, in addition to continuing as Group CEO.

“By simplifying our businesses across two distinct and coherent groups, each with a clear vision for profitable growth, it sharpens our focus and provides opportunities to capitalise on key market trends, while continuing to leverage the benefits of the Olam Group,” said co-founder and group CEO, Sunny Verghese.

“We believe this will enable us to explore potential carve outs and IPOs in a sequential manner and attract additional investors who are aligned with the vision of these two new groups in order to maximise the value of our business.”

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