Olam

Olam: is a Hebrew word meaning universe, world, globe,

transcending boundaries
- Global leader in the supply of agricultural raw materials
(food ingredients and industrial raw materials)

Portfolio: (Products):
Food Ingredients:
- cocoa(beans, butter, powder/cake), coffee(robustas,
arabicas), cashew, rice(white, parboiled), sugar(raws,
whites), sesame(mixed, white, hulled), sheanuts(nuts,
butter)
Industrial raw materials:
- cotton(seed cotton, cotton lint), timber(teak, hardwood)

Product Mkt Olam’s Mkt Global CAGR CAGR

size Vol Share Ranki (%) (%)
(‘000 (‘000 (%) ng Mkt Olam
tons) tons)
Raw 367 91 24.80 1 14 14
Cashew
Nut
Cashew 950 48 5.05 4 3 -3
karnels
Cocoa 2880 217 7.53 3 2 59
Coffee 1734 157 9.05 2 8 47
Rice 13250 771 5.82 3 -2 34
Sugar 22000 208 0.95 16 1 4
Sesame 562 37 6.58 3 3 21
Sheanuts 65 26 40.00 1 7 8
Cotton 6400 96 1.50 12 2 28
Timber 2907 121 4.16 6 6 4
Figures for 2002

Global Presence:
Origin Offices: Direct presence in 30 origin countries,
- Nigeria, Ghana, Benin, Togo, Cameroon, Gabon, Ivory
Coast, Burkina Faso, Mali, Guinee, Senegal, Guinea
Bissau, Uganda, Kenya, Tanzania, Madagascar,
Mozambique, South Africa, Uzbekistan, Turkmenistan,
India, Indonesia, Myanmar, Thailand, Papua New Guinea,
Brazil, Khazakastan
Marketing offices: Service over 50 end markets
 - Singapore, France, Netherlands, Poland, Dubai, Russia,
Nigeria, Senegal, Ghana, Cameroon, Guinea Bissau,
Guinee, Tanzania, Uganda, Mozambique, South Africa

Shareholders:
 Kewalram chanrai group - 60.92%
 Management team - 24.66%
 Russell AIF 14.43%

History:

Olam’s competitive strategy:

Platforms for growth

 Product Expansion
 Value chain expansion- processing and distribution
 Olam, currently, is a diversified Integrated Trade House and is a
‘multiproduct’, ‘multilocation’ operation.

Rationale for being ‘multi product’ and ‘multi location’

operation: extracting operating leverage, diversifying risk, securing
earnings stability, building platforms for ‘profitable growth’

Future Plan:
 Olam’s plans for the next 5 years are to achieve a top line
growth of 14% CAGR and a bottom line growth of 34% for the
period 2001-2006
 The growth plans are based on clearly identified initiatives in
each business including volume expansion, increased value
chain participation, forward integration and leveraging existing
capabilities.
 Their competitive position in each business and their historical
performance gives them confidence that they will achieve these
targets

Sales Projection: Sales are projected to continue strong growth at

14% CAGR between FY01 and FY06

Strategies to reach the Projected Growth:

 Increase our share in existing products mainly from current

origins and selected new origins
  Increase investments in processing, warehousing, and logistics
infrastructure in existing origins
 Strengthen our marketing position and secure a higher share of
end user business
 Expand into adjacent product opportunities in origins where we
already have a strong presence
 Gain increased access to low cost capital

What are they looking for ?

 Multi-skilled
 High ownership and commitment