Bunge Ltd (BG): A Foolish Choice

Wilmar International
based in Singapore is Asia’s leading agribusiness group. Wilmar has successfully implemented a robust strategy involving an integrated business model which has efficiently optimized its value chain. With over 450 manufacturing facilities in emerging markets such as China and India, the company has efficiently developed a robust distribution network covering over 50 countries.

Continuing the industry tradition, WILMAR INTL LTD ADR (NASDAQOTH:WLMIY) has formed a series of strategic partnerships with prominent names within the industry to promote mutual benefits and achieve long-term sustainable growth.

Incidentally, the Asian leader entered into three joint ventures with Archer Daniels, the company’s long time business partner (Archer Daniels holds a 20% stake in Wilmar international) in tropical oils refining in Europe. The partnership bolsters WILMAR INTL LTD ADR (NASDAQOTH:WLMIY)’s global fertilizer purchasing and distribution and global ocean freight operations.

Over the years, Wilmar has managed to develop a diversified portfolio of products which gives it a definite strategic edge over its competitors in the form of access to larger customer base and wider market presence.

Wilmar has a robust growth strategy in place which is focused on expanding its footprint in the high growth markets of Asia and Africa. The company’s recent moves are evidence of its efforts to solidify its position not only as a leader in Asia but on a global platform.

Final assessment

Admittedly, the agricultural foods business is an extensively competitive market place. Considering the fact that the industry is set to grow exponentially in the coming times, there is a whole new world of opportunities waiting out there to unfold.

However, product differentiation, market penetration, geographical expansion and technical advancements will prove to be key determinants of success for the industry in times to come.

Considering Bunge Ltd (NYSE:BG)’s extensive expertise in the industry coupled with the company’s aggressive expansion strategy, this stock looks set to soar in the coming times and is a definite addition to your portfolio.

The article Bunge: A Foolish Choice originally appeared on Fool.com is written by Lalita Chauhan.

Lalita Chauhan has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Lalita is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.