Natural Fibres Division
Olam History: Rapid Growth & Expansion
FY 2011
Start Up in 1989
platforms
2014
products
countries
6868
countries
end
markets
5050
end
markets
11,600
customers
11,600
customers
17,000
employees
17,000
employees
S$15.7 bn turnover
S$444.6mm PAT
S$6.3 bn Mkt. Cap
1 product
1 country
1 end market
4 customers
2 employees
Transitioned from a Trader to an Integrated Global Supply Chain Manager
Product groups include: Industrial raw materials, edible nuts and spices,
confectionary and beverage ingredients, food staples and packaged foods, and
commodity financial services.
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The Brand Behind The Brands
Our Business: Supply Chain Manager
of Agricultural Raw Materials
Integrated from farm to spinning mill
Managing risk at every stage
Farming
Ginning
Inland
Logistics &
Shipping
Trading &
Distribution
Marketing,
Risk &
Inventory
Solutions
Retail
Alliance
Farm-to-Retail Supply Chain Capability
The Brand Behind The Brands
Our Geographies: Linking Origins,
Processing Centers & Markets
Strong Origin
Presence
Strong End
Market Presence
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The Brand Behind The Brands
Olam Extension Farming in Africa
• 100,000 partner farmers
Cote d’Ivoire, Ghana, Mozambique, Zimbabwe, Zambia
• Financing, capacity-building, ginning, exporting
• Elected to BCI council in June 2012
• Will produce first BCI crop in Mozambique this year
• Working towards CMiA in Ghana and Cote d’Ivoire
Olam Livelihood Charter
Strengthening farmer supply chains
8 Qualifying Principles:
1. Financing
2. Improved Yield
3. Labour Practices
4. Market Access
5. Quality
6. Traceability
7. Social Investment
8. Environmental Impact
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SECO S.A.: Improving farm productivity
Doubled yields,
multiplied
farmer revenues
1400
1200
1000
800
600
400
200
0
Farm yield (kg/ha)
Family net income (USD)
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Social Investment
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Towards 5M tons of quality fiber for Africa by 2022
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Thank You
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Olam Natural Fibres
– Strong global competitive position
Cotton Leadership Position
#2 global player in Cotton
Leader in Africa, CIS, Australia,
Bangladesh and Korea
Universal supplier/ Strong
ELS presence
Strong Management Team
Experienced and a diverse
management team with deep
domain knowledge
Well aligned structure
Strong Growth Potential
Rapid growth in US, India and
Australia
Taking a lead in sustainable cotton
initiatives
Superb Ginning Capabilities
Global leader in ginning operations
Broadest global ginning footprint
- 30 gins across US, Australia, India,
Zimbabwe, Tanzania, Nigeria,
Uganda & Zambia
Portfolio - Risk Management
Strong knowledge base/ processes
& systems
Use of innovative products
Springboard to BU Adjacencies
Almonds and Tomato Paste
Grains, Wool and Pulses
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Customer Focus
Dominant position in Asian markets
Successful captive market operations
in China/ Turkey/ Vietnam
Retailer alliance
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Now well diversified, across scale platforms
& value chain - Uniquely shaped portfolio
Product Category
Industrial Raw
Materials
Upstream
Supply chain
Natural Fibres*
•
•
Wood Products
•
•
•
Rubber
•
•
•
•
•
Fertilisers
Downstream
Edible Nuts,
Spices
Edible Nuts*
•
•
•
Spices
•
•
•
Confection &
Bev. Ingredients
Coffee*
•
•
•
•
•
Food Staples and
Packaged Foods
Dairy
•
•
•
Grains/Rice
•
•
•
Sugar/Sweetener
•
•
•
Palm
•
•
•
Cocoa*
•
Packaged Foods
Commodity FS
•
CFS
*Global Leader in Natural Fibres, Coffee, Cocoa and Edible Nuts
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Additional Information
Olam specialises in all stages of the cotton
marketing process including the acquisition,
processing, risk management, sale,
classification, storage, transport and export of
processed Australian cotton. Olam has a well
established reputation within the cotton
industry and is recognised as an industry
leader, a trusted supplier of premium quality
cotton, and a preferred partner for many of the
major textile mills worldwide.
We work hard to build and maintain a
customer based culture. Our aim is to develop
and maintain long-term relationships with
reliable quality focussed spinning mills by
supplying premium Australian cotton on time,
and in accordance with the customers’ needs.
Our marketing and trading philosophy is
guided by the following principles:
Quality shipments
Ship to contract regardless of price
movement after purchase
React immediately to problems
Ship on time
Our marketing department is also able to offer
growers and spinning mill customers alike a
choice of contracts that include a variety of
price and delivery alternatives. This enables
each party to manage its market exposure.
We market cotton to all major consuming
markets including Japan, Indonesia,
Bangladesh, China, Thailand, Pakistan, South
Korea, India, Italy, Hong Kong and Malaysia
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