This Case is about INTERNATIONAL BUSINESS, MERGERS & ACQUISITIONS, SUPPLY CHAIN, SUSTAINABILITY
PUBLICATION DATE: December 21, 2010 PRODUCT #: NTU019-PDF-ENG
Created in 1991, Wilmar grew quickly to become one of the largest palm oil firms in Southeast Asia, with earnings and net profits of US$23.9 billion and US$1.88 billion respectively for the year ended March 2009. It ran in the whole value chain of the business, from plantations to transportation, merchandising, processing and supply.
As the third-biggest listed plantation business on the planet, 300 processing plants ran and had an extensive international supply network. Its products sold in over 50 nations, including India and China. They were demanding palm oil companies, including Wilmar, to take actions to deal with these problems. It was poised to get Australia’s biggest sugar company with operations in sugar milling and refining Sucrogen, bioethanol production and generation of renewable electricity.
It was also growing into sub Saharan Africa, where many authorities were eager to support the development of handled large scale oil palm jobs. Yet, as in Asia, authorities and palm oil companies could expect to encounter pressure from environmental groups regarding potential adverse effects. The challenge was to handle these initiatives as well as the environmentalists’ demands for more sustainable operations.Wilmar International Limited Managing Multiple Stakeholders in a Global Palm Oil Agribusiness Group Case Solution