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IntroductionOperational since 2004 Omni Value has emerged as a dominant , innovative & integrated supply chain manager of agricultural commodities out of West Africa. Since the onset Omni Value has been rapidly increasing it’s market share and registering a CAGR of over 30%.
Today with revenues over USD 100mn , our operations incorporate a diversified matrix of commodities-origins-value chain adjacencies. Our product basket comprising cocoa, cashew, coffee, sesame, sheanuts & peanuts is originated from entire West Africa. Our ability to leverage on our core competencies of origin management and organizational strength gives us a unique position vis-à-vis our competitors.
One of the reasons for our success is our core values; which are to be a value oriented entrepreneurial team based organization. We provide stretching challenges to our team members. Our organizational processes ensure that our team remains loyal & committed. We breed leaders….
Business Overview
Products•Cocoa•Cashew•Coffee•Sesame•Sheanuts•Ground Nuts
Geography•Ivory Coast•Nigeria•India•Hong Kong•Burkina Faso•Benin•Togo
Business Overview
Value Chain•Multi-level presence
•Origin Procurement & Sales•Logistics•FOB / CNF Deliveries•Value Addition through Primary Processing•Destination High Seas Sales and Stock and Sale •Trading
Infrastructure & Services•In house primary and secondary evacuation infrastructure (Fleet of trucks)•Hedging Services•Risk Management•Clearing, Forwarding & Transit at origins
Time Line2004 – Ivory Coast / Cocoa, Cashew
2005 – Benin
2006 – Coffee
2007 – Burkina Faso + Hong Kong + India / Sesame2008 – Nigeria / Sheanuts, Ground Nuts
From a single country, Ivory Coast with two products cocoa and cashew , we have been able to transfer our skills into other product categories and countries. Every origin today has our own organizational structure.
USD 110mn / 50,000MT
USD 70mn / 35,000MT
USD 70mn / 35,000MT
USD 55mn /
30,000MT
USD 40mn / 20,000
MT
Time Line
2009 – India. Revenue base 125mn USD
2010 – Consolidation of business and improvement in operations and WACC
2011 – Strategic fixed asset investment in Ivory Coast with projected value of USD 25mn + Processing of RCN in India and Vietnam. Revenue projection – USD 140mn
Time Line – In the right direction!• Jute bags imports
added to port folio• Hibiscus, ginger
added to portfolio• Growth remains
steady and profit margins stable2012
Core Processes
Governing Objective
•Maximize Shareholder Value At Every Stage
Strategic Intent
•To be No. 1 Business (in value creating terms at every stage) in the product categories in the markets where we operate by end of year 2012
•Cumm EVA of 20 mn USD and Turnover of USD 300mn by 2012
Core
Competency
•Origin Management
•Organizational Strength
Strategy
•Out-Origin Competition
Alignment
•Core Processes followed within the organizational align various elements of the company towards the Governing Objective (7S Framework)
Culture & Core Values•Value Oriented• Entrepreneurial – Systematic & Responsive Entrepreneur•Team Based Organization•Learning Organization•Leader –Manager•Innovative Organization•Ownership, Commitment & Integrity•Stretch
Core CompetencyOrigin Management Advantage
• Identify origination opportunities
• Setting Procurement Structure
• Multi skilling of field staff
• Institutionalize FOM
• Risk Management
• Logistic Management
• Cost Efficiency
• Innovation
• Domination
• Counterparty Credibility
• Flexibility
• Cross Sourcing of Products
Organizational Advantage•Omni Value Style - Institutional Entrepreneurism (PROFFESSIONAL
ENTREPRENEUR)
•Omni Value Spirit - A winning Spirit
•Omni Value Shared value - Maximizing value at every stage and
sharing the fruits of success with the team
•Omni Value Staff - Selection, development and Deployment and
development of Origin and Expat manpower.
•Omni Value Skills - Transfer of Learning
•Organizational Alignment
Core Competency
Organizational StructureBOD
CEO
COO
Country Head / Finance
Controller
Operations Manager /
Finance Manager
Unit Head
Quality Controller
Warehouse Keeper
Establishes Corporate Code of Conduct, Policy & Strategy
Vision, Strategic Intent, Business Organisation
Policy Support, Strategic Insight, Alignment, Planning
Profits as Deliverables, Finance, Legal, Procurement
Volumes, Implementation, Field & Zonal Accounts
Procurement, Field Accounts
Participation
ProcessingWe manage the primary processing at the origin. We maintain high standards of quality
Logistics and Shipping
We manage multi-modal transportation requirement of
our businesses
Risk ManagementCapturing and measuring risk our core capability. We manage risk for our customers in a volatile environment to give them price and position protection Distribu
tionWe make effective,
timely and customized deliveries to our global customers
OriginationOur experience starts
at the origin by procurement of
economically feasible lots from farmgate
Cocoa•Cocoa beans procurement and export is one of our core businesses•We procure high quality good fermented cocoa beans from the farm-gate level and process them to export grade quality•Our grass roots presence in Ivory Coast and Nigeria ensures stable volumes of 30,000 MTPA
Volume = 30,000 MTPATurnover = USD 80 mn
Cashew
Volume = 30,000 MT
Turnover = USD 25 mn
•Our success in the cashew business has arisen out of developing a Multi-Origin, Multi-Destination, Multi-Level strategy. •Origins : Ivory Coast, Nigeria, Benin, Burkina Faso, Guinea Bissau•Destinations : India, Vietnam, Brazil
Other ProductsCoffee
Origin : Ivory CoastVolume : 5,000 MTPA
SesameOrigin : Nigeria, Burkina Faso
Volume : 4,000 MTPA
SheanutsOrigin : Ivory Coast, Burkina Faso
Volume : 2,000 MTPA
GroundnutsOrigin : Ivory Coast
Volume : 1,000 MTPA
Upcountry Procurement Model - Cocoa
During the cocoa campaign we have nearly 14 upcountry procurement units which control quality and procure cocoa from as small a lot size of 600 kgs upto 10 MT. Each procurement unit has a procurement officer, quality controller and warehouse in-charge. We have dynamic management systems which give us timely reports to hedge and manage our price position risk, stock risk, credit and counter-party risk. We have supplier network of more than 125 suppliers.
SystemsPerformance Management Systems• KRA Appraisal : For Incentives• Competency Appraisal : For Promotions
Budgeting• Field Expenses Budgets• Administrative Budgets• TCB
Working Capital Monitoring• Credit Limits• Stock Limits• Product Limits• Country Limits
SystemsFOM Implementation• Field Accounts• Product Accounts• Country Accounts• Corporate Accounts• Reporting Systems
Review Process• Unit Reviews• Product Reviews• Country Reviews• Profit Centre Reviews
Information and Risk Management• Periodic Reports• Risk Capital / Limits Monitoring
Risk Management & Supply Chain
Price/Currency
Producer Port(Take Title)
Shipping Warehouse
Delivery to IndustrialCustomers
IndustrialConsumer
Risks and Risk ManagementPrepayment Loss or DamageFreight Costs/
Loss or Damage
Risk Lay-offWith Banks& Insurance
Payment/PriceCurrency
InsuranceLME HedgeFX Hedge
Freight Costs/Loss or Damage
Freight HedgeInsuranceInspection
Freight HedgeInsurance
Insurance L/CLME HedgeFX Hedge
10,000 MT 10,000 MT 10,000 MT
7,000 MT
3,000 MT3,000 MT
7,000 MT
Risk Management @ Omni Value
Value Added for Counterparty
Value Added for Omni Value
Large VolumesReliable Customer
Access to supplyHigher discountsLong-term Relationship
CompetitiveRates
PaymentLarge VolumesReliable CounterpartyLong-term off-take
Large VolumesReliable Customer
Higher Premiums
Reliable SupplierCompetitivePrices
Large VolumesReliable Customer
CompetitiveRates
CompetitiveRates
Producer Port(Take Title)
Shipping Warehouse
Delivery to IndustrialCustomers
IndustrialConsumer
10,000 MT 10,000 MT 10,000 MT
7,000 MT
3,000 MT3,000 MT
7,000 MT
Future….
CREATING VALUE AT EVERY
STAGE
Enhancing Skills and Leveraging Core Competencies for
Growth
Developme
nt of
Product –
Markets –
Value Chain
We have just begun…there are greater heights to achieve!
We have developed a strong business model and we intend to build on it as we grow the company along the adjacency lines.
Our aim is to dominate our current market place and put all our energies in extracting full value and growth potential from our sectors.
In ensuring the prosperity of Omni Value we shall continue to add value to our customers, employees and stakeholders
THANK YOU…