Olam International restructures business into two new operating groups

Olam International, based in Singapore, has reorganised its business into two new operating groups focusing on food ingredients and global agri-business.

It has chosen to name the new groups Olam Food Ingredients (OFI) and Olam Global Agri (OGA).

OFI will focus on delivering natural, value-added food and ingredients products to consumers. Its product offerings include cocoa, coffee, edible nuts, spices and dairy.

OGA will focus on supplying food, feed and fibre. It will comprise differentiated businesses of grains and animal feed, edible oils, rice, cotton, and commodity financial services.

Olam International co-founder and group 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, while continuing to leverage the benefits of the Olam Group.

“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.”

Olam said that these two new groups aim to increase business in line with key consumer trends and market opportunities.

The move forms part of the company’s strategic plan, as announced in January 2019.

Olam International will serve as the parent company of OFI and OGA, offering stewardship to the new operating groups.