Over the past 30 years, Olam has developed three key sources of differentiation:
Portfolio strategy: Olam has a uniquely shaped portfolio, having developed a portfolio of speciality agri-products and food ingredients with global leadership positions and is not in direct competition with major peer group companies. These speciality agri-products and food ingredients also serve today’s consumer preferences for healthy foods. In some select mainstream bulk commodity categories, Olam has adopted a defensible and differentiated strategy that is focused on destination processing, such as wheat milling in Africa, where we have achieved strong leadership position. Our portfolio is well-balanced, with selective integration in the value chain – a diversified supply chain presence across more than 60 countries as well as upstream and midstream/downstream presence across selected products and countries – plus a unique Africa footprint and operating capabilities across 25 African countries.
Competitive strategy: Olam has established strong relationships with customers in destination markets, many of which are well-known food multi-nationals. The strength of our marketing capabilities in destination markets is a result of our ability to provide customers with various value-added solutions and services based on our strengths and the key industry trends, such as health and wellness, sustainability and digitalisation. Concurrently we have developed strong origin management skills in identifying origination opportunities, setting up and managing procurement and distribution infrastructure and institutionalising field operating systems effectively. We therefore have a distinct sustainability advantage by driving it from source and is today one of the leaders in sustainability in the industry. We are now making significant investments in digitalising our Company – the goal is to digitise the highest value supply chains end-to-end, both to drive cost efficiencies and to capture additional value across the supply chain. Read more about Digital Olam in the making.
Organisational advantage: We have built a global leadership and talent pool with deep specialist expertise as well as product, market and origin expertise underpinning our business model. Olam has been building an inspiring and high performing organisation by developing a satisfied, engaged and inspired talent base; institutionalising “the Olam Way”, the blueprint for success in our business model; developing leadership and capability; and managing performance and rewards. We are supported by a strong, diversified base of long term, well-established and reputable investors – our shareholding structure today reflects the long-term tenor of our strategy with key shareholders being Temasek Holdings (53.6%), Mitsubishi Corporation (17.4%), Kewalram Chanrai Group (7.0%) and the management team (6.3%). Our ability to attract these investors has provided us with funds to finance our growth and contributed to narrower spreads on our bank borrowings.
Get in touch with our Indonesia team:
Mobile/Wa: 0895 0404 4258