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Value Chain

Value Chain

We strongly believe that the success of the commodity business is largely determined by the amount of direct control you have over the value chain continuum. Trading, though integral, is just a part of the overall business chain. Value, on the other hand, is an intrinsic, intangible variable with varied connotations to different segments of business partners. R1 emphasises the effective deployment of resources to strengthen each process in the business to achieve the highest operational efficiency such that the end contribution is greater than the individual process outputs. A value thus created, transforms into strategic advantage for R1,and is extended as a tangible benefit to its business partners and customers.

Value creation across value chains

A value thus created, transforms into strategic advantage for R1,and is extended as a tangible benefit to its business partners and customers.

Upstream

Access to large rubber plantation bases

At the shareholder’s level the group has access to its large rubber plantation base in China.

Midstream

Rubber Trading

R1 has high involvement in each of the these activities and is continuously expanding its reach and strengthening foot-hold in each of these segments to maximise on the profitability, minimise the risk and creating unique value propositions for our customers. The group shall invest most of its time and efforts to concentrate in this segment.

This is the most populous area in rubber trading which involves the following:

Downstream

Rubber Distribution & Warehousing at strategic locations

R1 is well placed with its strong network and involves itself in the downstream distribution and warehousing of rubber at strategic locations to serve the logistically long-haul markets to provide JIT deliveries to its customers, thereby also minimising the risk of exposure for them. We take over the complete price risk management in these cases and our customers get the product right at the door step with shortened lead times and the current market price. Moving further in downstream, R1, leveraging on its strengths in rubber trading, raw material and network shall selectively engage itself in investments in rubber industries as their ‘partner of value’.

Mutual Value Creation (MVC)

Identifying and tapping on potential opportunities of co-operation with our business partners throughout the supply chain viz: plantation owners, rubber co-operatives, channels, industry regulators and customers; by complimenting their areas of concern with our bouquet of services, opens up new avenues of mutual cooperation, unleashing the trapped potential to its fullest thereby achieving a stronger integration. Making the unidirectional value chain to expand multi-dimensional, this MVC mind-set forms the backdrop of each R1 team in executing their daily business chores, keeping us at the threshold of continual innovation.

Risk Management

R1 employs a comprehensive risk management system, based on COSO ERM framework, to define, assess, control and mitigate the various risks it gets exposed to through the supply chain. To achieve efficiencies, real time monitoring and key controls at various points of trade, the company deploys the best technological platforms developed indigenously for its trade. This initiative is highly regarded by our business partners because a risk well addressed extends its benefits to all the parties involved in the business. Thus we offer to our partners, “We undertake and manage the complete risk while you reap the rewards!”

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