natural fibres division. the brand behind the brands 2 olam history: rapid growth & expansion...
TRANSCRIPT
The Brand Behind The Brands2
The Brand Behind The BrandsThe Brand Behind The Brands
Olam History: Rapid Growth & Expansion
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.
20 products68 countries 50 end markets11,600 customers17,000 employeesS$15.7 bn turnoverS$444.6mm PATS$6.3 bn Mkt. Cap
14 platforms68 countries 50 end markets11,600 customers17,000 employees
FY 2011
1 product1 country 1 end market4 customers2 employees
Start Up in 1989
The Brand Behind The BrandsThe Brand Behind The Brands
Farming Ginning Inland Logistics &Shipping
Trading &Distribution
Marketing, Risk &InventorySolutions
Retail Alliance
Integrated from farm to spinning millManaging risk at every stage
Farm-to-Retail Supply Chain Capability
Our Business: Supply Chain Managerof Agricultural Raw Materials
The Brand Behind The Brands4
The Brand Behind The Brands
Our Geographies: Linking Origins, Processing Centers & Markets
Strong Origin Presence
Strong End Market Presence
The Brand Behind The Brands5
The Brand Behind The Brands
Olam Livelihood CharterStrengthening farmer supply chains
8 Qualifying Principles: 1. Financing2. Improved Yield3. Labour Practices4. Market Access5. Quality6. Traceability 7. Social Investment8. Environmental Impact
• 100,000 partner farmersCote 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 Extension Farming in Africa
The Brand Behind The Brands6
The Brand Behind The Brands
SECO S.A.: Improving farm productivity
Monitoring & coachingTraining
ResearchSeed multiplication
2008/09
2009/10
2010/11
2011/12
2012/13
0
200
400
600
800
1000
1200
1400
Farm yield (kg/ha)Family net income (USD)
Doubled yields, multiplied
farmer revenues
The Brand Behind The Brands7
The Brand Behind The Brands
Rural infrastructure
Social Investment
LiteracyHealth
The Brand Behind The Brands8
The Brand Behind The Brands
Towards 5M tons of quality fiber for Africa by 2022
The Brand Behind The Brands10
The Brand Behind The Brands
Portfolio - Risk Management
Strong knowledge base/ processes & systems
Use of innovative products
Cotton Leadership Position
#2 global player in Cotton
Leader in Africa, CIS, Australia, Bangladesh and Korea
Universal supplier/ Strong ELS presence
Superb Ginning Capabilities
Global leader in ginning operations
Broadest global ginning footprint- 30 gins across US, Australia, India,
Zimbabwe, Tanzania, Nigeria, Uganda & Zambia
Customer Focus
Dominant position in Asian markets
Successful captive market operations in China/ Turkey/ Vietnam
Retailer alliance
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
Springboard to BU Adjacencies
Almonds and Tomato Paste
Grains, Wool and Pulses
Olam Natural Fibres– Strong global competitive position
The Brand Behind The Brands11
The Brand Behind The Brands
*Global Leader in Natural Fibres, Coffee, Cocoa and Edible Nuts
Product Category Upstream Supply chain Downstream
Industrial Raw Materials
Natural Fibres* • •
Wood Products • • •
Rubber • • •
Fertilisers • •
Edible Nuts, Spices
Edible Nuts* • • •
Spices • • •
Confection &Bev. Ingredients
Coffee* • • •
Cocoa* • •
Food Staples and Packaged Foods
Dairy • • •
Grains/Rice • • •
Sugar/Sweetener • • •
Palm • • •
Packaged Foods •
Commodity FS CFS •
Now well diversified, across scale platforms & value chain - Uniquely shaped portfolio
The Brand Behind The Brands12
The Brand Behind The Brands
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
Additional Information