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Hi Likewise,
Fully agree with your points.
However it is a norm that commodity biz is high vol and thin margin.
In fact many other bizs are having such norm also, except some tech or property companies.
The strength of Wilmar is their setup is highly vertical , from planting to distributions, this is not easy for others, especially the new players to copy. Many edible oil or food related companies without this vertical setup, have to depend on raw materials from third parties, will have an uphill task to compete in this competitive World.
ZARA used to be a small garment manufacturer in Spain , they wouldn't be profitable if they didn't go into vertical setup, now ZARA has yarn spinning to apparel retailing.
If Wilmar no longer owns palm oil or sugar plantations, I will cease to be a shareholder.
This is my first quest with Wilmar and hope this entry price justify my decision.
Cheers.
Fully agree with your points.
However it is a norm that commodity biz is high vol and thin margin.
In fact many other bizs are having such norm also, except some tech or property companies.
The strength of Wilmar is their setup is highly vertical , from planting to distributions, this is not easy for others, especially the new players to copy. Many edible oil or food related companies without this vertical setup, have to depend on raw materials from third parties, will have an uphill task to compete in this competitive World.
ZARA used to be a small garment manufacturer in Spain , they wouldn't be profitable if they didn't go into vertical setup, now ZARA has yarn spinning to apparel retailing.
If Wilmar no longer owns palm oil or sugar plantations, I will cease to be a shareholder.
This is my first quest with Wilmar and hope this entry price justify my decision.
Cheers.