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Olam to divest its rubber, sugar businesses, invest $3.5 bn in core products

Olam to divest its rubber, sugar businesses, invest $3.5 bn in core products

Olam International, a leading global agri-business company, has announced that it will make a planned investment of US$3.5 billion in 12 prioritised high-potential growth businesses and release US$1.6 billion from de-prioritising and divesting four businesses – Sugar, Rubber, Wood Products, Fertiliser – and other assets that no longer fit with Olam’s strategic priorities.
The divestments will be completed in a responsible and orderly fashion during its 2019-2024 strategic plan, that capitalises on key trends shaping the sector. Driven by consumers and advances in technology, these trends include increasing demand for healthier foods, traceable and sustainable sourcing, e-commerce and the rise of “purpose” brands, Olam says in a Press release.
Olam’s new strategy builds on the current business model which has yielded strong results and growth across Olam’s diversified portfolio.
Says Sunny Verghese, Co-Founder and Group CEO, of Olam: “With our focus on farm-gate origination, end-to-end traceability, sustainability, digital initiatives and innovations like AtSource 1 , 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.”

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