SINGAPORE — Olam International will reorganize its business portfolio into two new operating groups: Olam Food Ingredients and Olam Global Agri.
Olam Food Ingredients will consist of the businesses for cocoa, coffee, edible nuts, spices and dairy. Olam Global Agri will consist of the businesses for grains and animal feed, edible oils, rice, cotton, and commodity financial services. It will supply food, feed and fiber to meet rising demand in Asian and African countries. Singapore-based Olam International will be the parent company of both Olam Food Ingredients and Olam Global Agri.
“Over the past 30 years, Olam has built a valuable portfolio of businesses that have achieved leadership positions,” said Sunny Verghese, co-founder and group chief executive officer of Olam International. “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 capitalize on key market trends while continuing to leverage the benefits of the Olam group.
“We believe this will enable us to explore potential carve-outs and I.P.O.s (initial public offerings) in a sequential manner and attract additional investors who are aligned with the vision of these two new groups in order to maximize the value of our business.”
Anantharaman Shekkhar has been named c.e.o. of Olam Food Ingredients and will step down from his current role as group chief operating officer. Mr. Verghese will become c.e.o. of Olam Global Agri and Olam International and continue as group c.e.o.
Olam International has a sourcing network of an estimated 4.8 million farms, and its supply chain spans over 60 countries and includes farming, processing and distribution operations.