Olam International will slash capital expenditures, generate cash and improve its transparency as it looks to establish itself as leaner stronger commodities player.
Among the major changes announced after the market closed on April 25, the commodities group pledged to reduce its planned capital expenditure by $1 billion as part of its new strategy.
It will monetise some its recent acquisitions through sale and less back as part of its drive to release cash and reduce fixed asset intensity. This is expected to generate $1.5 billion in cash over three years.
Olam is looking to reduce the complexity in its business by focusing on the products they have a leadership position in.
It will also focus on improving operating efficiencies by streamlining its manufacturing overheads. This will free up $80 million to $100 million a year.