Wilmar International Limited – Managing Multiple Stakeholders in a Global Palm Oil Agribusiness Group Harvard Case Solution & Analysis

Founded in 1991, Wilmar has grown rapidly to become one of the largest palm oil in South-East Asia, the revenue and net income of U.S. $ 23.9 billion and $ 1.88 billion respectively for the year ended March 2009. He has worked in the entire value chain in the industry, from the plantation to processing, marketing, transportation and distribution. As the third-largest listed plantation company in the world, it operated 300 plants, processing, and had an extensive global distribution network. Its products are sold in more than 50 countries, including China and India. As global demand for palm oil is grown, environmental groups were concerned about the impact of the palm oil industry on the social and natural environment, such as the loss of forest ecosystems, environmental damage, land degradation, pollution, greenhouse gas emissions and climate change. They put pressure on producers of palm oil, including Wilmar, to take steps to address these problems. By the end of 2010 Wilmar had two strategic initiatives to drive future growth. She was ready to buy Sucrogen, Australia's largest sugar company with operations in the sugar milling and refining, ethanol production and electricity generation from renewable sources. It has also been expanding its presence in sub-Saharan Africa, where many governments were interested in supporting the development of large-scale projects to manage commercial palm oil. However, as in Asia, palm oil producers and the government could expect to face pressure from environmental groups on the potential side effects. The challenge is to manage these initiatives, and environmental requirements for a more stable operation. "Hide
by Wee Beng Geok, Geraldine Chen, Ivy Buche Source: CCP in Nanyang Tech University 24 pages. Publication Date: December 21, 2010. Prod. #: NTU019-PDF-ENG

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