ofi marks dairy-focused milestone moment in line with strategy to build a value-added ingredients and solutions-led organization

  • Expands plant facility & strengthens capabilities of Ingredient Excellence Center in Malaysia
  • Plant now delivers significantly enhanced production capabilities for functional dairy ingredients
  • New category labs with state-of-the-art R&D equipment for customizable food and beverage solutions


ofi, a global leader in naturally good food and beverage ingredients, has increased its ingredient manufacturing footprint by adding significant capacity to its dairy production facility in Johor, Malaysia with the commissioning of a new milk powder dryer, whilst also expanding its integrated dairy Ingredient Excellence Center (“IEC”), servicing customers across the Middle East, Africa and Asia.

A Shekhar, CEO, ofi commented:

“This is a milestone moment for the business. Expanding our innovation infrastructure in Malaysia spotlights our bold ambition as we continue our journey to become a more solutions-led, customer-centric organization. With increasing demand from our global customer base, we will continue to explore growth opportunities within dairy ingredients that drive additional focus on the value-added capabilities within our portfolio. These enhanced facilities are a key part of this, complementing our existing global footprint, supporting greater collaboration with our customers and helping us achieve our Purpose to Be the Change for Good Food and a Healthy Future.”


The enhancements to the Johor processing facility’s capabilities will more than double the production volume of functional dairy ingredients and fat filled milk powder made per year, in turn enabling ofi’s customers to formulate innovative applications at scale. In addition, the expanded IEC has new laboratory spaces with state-of-the-art research and development equipment dedicated to supporting customers seeking a customizable, tailored and cost-efficient approach to application solutions in beverages, bakery and frozen dairy desserts.


Through working in close collaboration with its Singapore Customer Solutions Center and integrated across its global network of 15 innovation centers, the IEC’s new capabilities enable ofi to better collaborate with brands, grocery retailers and foodservice companies to create their next delicious and nutritious product for consumers.


The new facilities also complement ofi’s existing global footprint, driving stronger partnerships with its customers and strengthening its co-creation capabilities across the region. Importantly, this aligned approach will drive further focus on ofi’s high-growth end-use categories – with ready-to-drink beverages, premixes and blending lines forming part of the wider service offering – along with its signature Lactorich range of dairy solutions, transforming the way consumers experience this healthy and nutritious product. A standout example from this range being Lactorich Vers, specially designed to replace whole milk powder in a wide range of applications. By providing a rich, creamy mouthfeel and a clean profile, this solution offers optimal value in helping customers create better dairy products with no added flavors.


Sandeep Jain, Managing Director and CEO, Dairy, at ofi commented:

“The demand for nutrition-rich functional dairy ingredients continues to grow at pace, particularly across the Middle East & Africa. Building on our strategy to provide localized, customized food and beverage products that will appeal to local customers, the expanded capabilities in Malaysia enable us to co-create products that are focused on health, taste and convenience. Furthermore, the expanded plant has been designed around food safety and operational excellence. This includes an automatic and ergonomic raw material feeding system and an advanced depalletizing system, ensuring consistent product quality.”


This focus enables ofi to deliver on its customer service model to provide the support, knowledge, and high-quality ingredients required to launch products that delight consumers, Jain said.


“When combined with our research and development experts at the Singapore Customer Solutions Center, our global network of innovation centers and ofi’s wider portfolio of ingredients such as coffee and cocoa, we can now offer customers in the region even more exciting innovation-led opportunities,” he said.


Sustainability is also a central component of the plant design. It uses solar power, rainwater harvesting and operates at a high efficacy rate with strong energy and water consumption practices, with close to zero raw material wastage.


Malaysia Plant Facts & Stats:

  • Plant inauguration attended by YB Lee Ting Han, Johor State Investment, Trade and Consumer Affairs Committee Chairman.
  • New operations include enhanced spray drying capability delivering world class standards and providing customized dairy solutions.  
  • ofi has created 70 new jobs, adding to its existing highly skilled positions at the Plant.

About ofi

olam food ingredients (“ofi”) is a new operating group born out of Olamofi offers sustainable, natural, value-added food products and ingredients so that consumers can enjoy the healthy and indulgent products they love. It consists of industry-leading businesses of cocoa, coffee, dairy, nuts, and spices. ofi has built a unique global value chain presence including its own farming operations, farm-gate origination, and manufacturing facilities. ofi partners with customers, leveraging its complementary and differentiated portfolio of ‘on-trend’ food products, to co-create solutions that anticipate and meet changing consumer preferences as demand increases for healthier food that’s traceable and sustainable.


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About Olam Group

Olam Group is a leading food and agri-business supplying food, ingredients, feed and fibre to 20,900 customers worldwide. Its value chain spans over 60 countries and includes farming, processing and distribution operations, as well as a global network of farmers. By re-imagining global agriculture and food systems, Olam Group aims to address the many challenges involved in meeting the needs of a growing global population, while achieving a positive impact for farming communities, our planet and all our stakeholders.


Headquartered and listed in Singapore, Olam currently ranks among the top 30 largest primary listed companies in terms of market capitalisation on SGX-ST.


Since June 2020, Olam Group has been included in the FTSE4Good Index Series, a global sustainable investment index series developed by FTSE Russell, following a rigorous assessment of Olam’s supply chain activities, impact on the environment and governance transparency. The FTSE4Good Index Series identifies companies that demonstrate strong Environmental, Social and Governance (ESG) practices and is used by a variety of market participants to create and assess responsible investment funds.


More information on Olam can be found at www.olamgroup.com


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This announcement does not constitute or form part of an offer for sale or solicitation of an offer to purchase or subscribe for securities in the United States, Canada, Australia, South Africa, Japan or any other jurisdiction and the securities referred to herein have not been registered under the securities laws of any such jurisdiction. The ordinary shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold, directly or indirectly, in the United States, absent registration under or an exemption from, or transaction not subject to, the registration requirements of, the Securities Act. No public offering of securities is being made in the United States or in any other jurisdiction.

Contacts for ofi corporate communications

Nick Viner

Head of Media, ofi


+44 (0)7721 160645


James Loo 

Communications Lead, ofi


+65 6317 9453