When the exercise was completed at the end of last year, Olam announced plans to reorganise its businesses into two distinct operating groups focusing on food ingredients and global agri-business.
Olam Food Ingredients (OFI) comprises Olam’s cocoa, coffee, edible nuts, spices and dairy businesses. OFI is headed by CEO A Shekhar, the former COO.
Olam Global Agri (OGA) constitutes the group’s grains and animal feed, edible oils, rice, cotton and commodity financial services businesses. Sunny Verghese is the CEO of OGA, in addition to continuing as group CEO.
“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,” says Verghese.
“We believe this will enable us to explore potential carve-outs and IPOs in a sequential manner and attract additional investors ...” he adds.
In February, the group announced it is mulling the separate listing of OFI by 1HFY2022 to unlock long-term value. Olam shareholders will receive shares of OFI in specie at the point of demerger. Similar “strategic options” are being explored for OGA.
Photo: Bloomberg
