Business

Low return forces Dangote to sell noodles arm to Dufil Prima

Low returns forces Dangote to sell noodles arm to Dufil Prima
By Editor

As a result of dwindling investment returns from one of its subsidiaries, Dangote Flour Mills, the Dangote Group has decided to sell its noodles business to a competitor, Dufil Prima Foods.

Though the Group, in a statement announcing the sale on Tuesday, remained silent on why it took the decision, sources said the emergence of too many noodles’ products in the market is a major factor.

The fact that the Dangote Group is currently refocusing its interest on oil and gas business, is said to have been a major reason for divesting from the noodles business.

The Chief Executive Officer, Dufil Prima Foods, Deepak Singhal, speaking on the deal to newsmen described the acquisition of Dangote Noodles as strategic, as his firm has the intention of dominating the noodles market in Nigeria.

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He said Nigeria, as a large market has given the company the leeway to expand to other neighbouring countries, which acquiring Dangote’s Noodles would make more feasible.

The Group Managing Director, Dangote Flour Mills, Thabo Major, said with the divestment, Dangote Flour will now focus on its strengths in flour and pasta as to improve more on profitability by improving in areas of quality, distribution and marketing.

On the fate of the workers at the factory, he said arrangements were made to accommodate them in the deal.

Dangote, rated as the richest man in Africa, and 25th in the world is expanding his interests in cement industry to other African countries as well as constructing the biggest private refinery in Nigeria.

 

 

 

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Editor

We are an online newspaper, very passionate about Nigerian politics, business and its leaders. We dig deeper, without borders and without fears.

  • Anita Kingsley

    Ghen ghen… no businessman in this country should complain of anything, if Dangote can sell his noodle subsidiary to another firm, that means business is slow, very very slow

  • Animashaun Ayodeji

    For whatever reason dangote sold the indomie firm, I’m sure he knows better and did the right thing needed to be done

    • seyi jelili

      Sure he knows better and so we should understand. Just that I am not too happy about it because his noodles are cheaper compare to indomie.

      • Agbor Chris

        Can you compare Dangote noodle’s quality to indomie noodles? Right from the onset, I knew he cannot last in market, the only recognized noodles in this country is indomie, other brands are just trying, they cannot be as good as indomie

  • yanju omotodun

    That dangote sells off his noodles business does not mean he is been affected in anyway. Anything that is not bringing you profit ,then you cut it off.

    • Nonso Ezeugo

      True talk because what dangote needs is profits not lost