Singapore agri-business sees potential of India-China cotton trade
India will continue to be an important segment of Singapore-based Olam Group’s global multi-agri business with continuing investment commitment.
“India will continue to be important … and we will continue to invest,” said Co-Founder and Group CEO Sunny Verghese here today.
While the Indian-origin Olam remains restricted on investing in plantations, given India’s land regulations, Verghese sees new opportunities in exporting cotton to China from access Indian production in the future.
China is a big consumer and importer of cotton, he pointed out, expecting India to increase cotton production when prices strengthened.
India-China cotton trade will depend on the commodity grade and prices, he believes.
Olam has become one of the leading commodity companies across the sub-continent over the last 28 years and enjoys a pan-India footprint for 10 key products, such as cashew, coffee, edible nuts and spices as well as sugar milling among others.
Addressing a press conference for Olam’s half year financial results today, Verghese underlined that Olam’s Indian investment strategy will be in line with the global business strategy.
In managing one of the most diversified agri-commodity supply chains in India, Olam enjoys a strong reputation as both preferred counter-party and preferred employer in India.
This is a testament to the company’s high-quality supply chain integration, from origination and processing, to logistics and marketing.
Olam began India operations in 1992, just three years after it was established in Singapore. Today, its business network is spread across 66 countries in 18 agri-sectors including cocoa, coffee, edible nuts, spices and rice, starting from seed to shelf.
Citing heightened political and economic uncertainties, Olam reported a 12.5% decline in profit after tax of SGD236.4 million though revenue had improved by 11.4% at SGD13.73 billion for the half year ended 30 June 2018.
Referring to lower results, Verghese was confident of prospects, “our investments in improving operational excellence and digitization initiatives have progressed well and will strengthen our business going forward.” fiinews.com
