Description
SWOT ANALYSIS OF IOI GROUP

IOI Group

Parent Company

IOI Corporation Berhad

Category

Food Processing

Sector

Food and Beverages

Tagline/ Slogan

People first, performance now

Providing customers with products and services that exceed their USP expectations

STP

Business segments: Plantation, Real Estate Development, Segment Manufacturing of oleochemicals and specialty fats& Refineries

Food manufacturing industry, Industrial & Consumer Food catering Target Group industry

Positioning

Providing products & services of superior values

SWOT Analysis

1. Development of agri-science and technology to improve crop and oil yields to meet increasing global demands 2. Integrated business model from plantation to specialty fats and oleochemicals 3. Operates on a multi-stakeholder format which involves strict principles and criteria covering the social and environmental requirements for the production and use of sustainable palm oil. 4. Crude Palm Oil prices have trended higher and are relatively stable yearon-year, supported by the growing demand for vegetable oils as well as emerging demand from the biofuel sector 5. Employs more than 30,000 personnel of more than 23 different Strength nationalities in 15 countries.

1.Uncertainties in the form of commodities price risk, credit risk, foreign exchange risk and interest rate risk. 2.Manpower constraints, pressure on increasing operating costs and extreme weather in the plantation division 3.Palm oil industry faces huge number of unresolved land conflicts Weakness due to land grabbing

1.Demand for palm oil would remain strong as consumption increases in select emerging economies coupled with the general global population growth 2.Expansion into Indonesia is through the acquisitions of interest in oil palm estates Opportunity 3.Emerging biofuel market

1.Economic crisis in the Eurozone and the global economic slowdown result in lower global trade and investments 2.In the refinery and specialty fats sub-segmentsstiff competition posed by the Indonesian resource-based manufacturers which have a cost advantage due to Indonesia’s preferential export duty tariff structure 3. Unfavorable legislation and government policies are constant Threats threats

Competition

1. Wilmar International Ltd and 2. PT Sinar Mas Agro Resources Tbk Competitors 3. Felda Group



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