Integrated Business Model
IOI Group is one of the world’s largest vertically-integrated palm oil producers. The Group’s palm oil business comprises the upstream plantation and downstream resource-based manufacturing businesses. This vertically-integrated business model allows products and services that are offered externally and consumed along the value chain to gain further value-added properties before reaching end-consumers.
The vertical integration of these two businesses increased significantly over the last few years as the Group expanded and moved more aggressively into downstream activities. Consequently, a substantial portion of the Group’s plantation produce, i.e. crude palm oil and palm kernel, is being utilised in its downstream manufacturing operations.
The integration of the two businesses is best illustrated in the following business model: