Global food and agribusiness Olam International announced on 20 January that it is re-organising its business portfolio to create two new operating groups focused on food ingredients and global agribusiness.
The Olam Food Ingredients (OFI) group will comprise the company’s businesses in cocoa, coffee, edible nuts, spices and dairy.
Olam Global Agri (OGA) will include the businesses of edible oils, grains and animal feed, rice, cotton and commodity financial services.
Explaining the rationale behind the move, Olam CEO Sunny Verghese said: “Over the past 30 years, Olam has built a valuable portfolio of businesses that have achieved leadership positions. 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.
“We believe this will enable us to explore potential carve outs and IPOs and attract additional investors who are aligned with the vision of these two new groups in order to maximise the value of our business.”
Olam’s edible oil portfolio includes palm, soyabean and sunflower oils serving the retail, food manufacturing, food service and personal care sectors, as well as speciality fats for confectionery and food manufacturing, according to its website.
It sources palm oil from its own 64,000ha of planted area in Gabon as well as from third-party suppliers in Indonesia and Malaysia.
It also operates edible oil processing and refining facilities in Gabon, Mozambique, Nigeria and the UK. In Mozambique, its facility produces vitamin fortified soya and palm oils under the Dona brand and sunflower oil under the Sunseed brand. It also produces laundry soap under the Bingo brand. In Nigeria, it operates Ruyat Oil Limited, which refines crude vegetable oils and markets refined, bleached and deodorised palm oil and palm olein.