Olam has revealed plans to sell off four business segments in the next six years to release $1.6 billion in cash for reinvestment.
As part of its 2019-2024 strategic plan, the Singaporean agri-business aims to offload its sugar, rubber, wood products and fertiliser businesses as well as other assets that no longer fit with its priorities.
The company will invest$3.5 million in 12 high-potential growth areas to strengthen and focus its business portfolio.
The strategy will see Olam generate additional revenue streams by offering differentiated products and services, such as risk management solutions, value-added services, and ingredients and product innovation. It will also explore partnerships and investments in new engines for growth.
Olam co-founder and CEO Sunny Verghese said: “With our focus on farm-gate origination, end-to-end traceability, sustainability, digital initiatives and innovations like AtSource, Olam is already primed to start capturing growth from this fast-changing landscape. Now, following a comprehensive review, our strategy is fully focused on harnessing these health and ethical sourcing trends, as well as changing consumer preferences.
“Crucially, our strategy will allow us to play a leading role in re-imagining global food and agri-supply chains for the better – sourcing raw materials within the earth’s capacity to regenerate and transforming those materials to deliver food, feed and fibre for a growing population.”
Olam COO A Shekhar said: “This is a pivotal moment for Olam to refocus on our strengths and capitalise on new opportunities. By executing on our refreshed strategic plan, we aim to be a global food and agri-business supporting our customers’ growing need for sustainable and transparent supply chains with a clear focus on tomorrow’s consumer preferences.”
Lim Ah Doo, Olam chairman of the board, added: “The board fully endorses this strategic plan that builds on Olam’s existing capabilities and sets a strong foundation for future growth. In addition, the company is in the process of appointing financial advisors to explore various options to maximise value for shareholders. This exercise is expected to be completed by Q4 2019.”
Local industry stakeholders under Food Drink Ireland (FDI) have called for targeted support measures in the sector that will help businesses stay buoyant during the transitional period.
Diageo has announced that the company’s CFO Kathryn Mikells will leave the business later this year and will be replaced by Lavanya Chandrashekar.
Schlosberg – who has resigned his positions as president, CFO, COO and secretary of Monster Beverage – will serve as co-CEO alongside Rodney C. Sacks.