Dangote Flour Mills
Dangote Flour Mills has divested its noodles business. The company sold the assets of Dangote Noodles to Dufil Prima Foods, makers of Indomie noodles because it does not consider it as strategic to its business.
The noodles business was part of the Dangote Flour Mills which t Dangote Group reacquired from Tiger Brands recently.
Thabo Mabo, Group Managing Director, Dangote Flour Mills, said on Tuesday the divestment is part of strategies of focusing on core areas of flour and pasta production where the company has substantial market share.
With the divestment, Dangote Flour will focus on its strengths in flour and pasta and makes it more profitable by improving in areas of quality, distribution and marketing.
According to him, the transaction which became effective last Monday, “is a win-win situation for Dangote Flour Mills, Dufil Prima Foods and staff of Dangote Noodles” as Dangote Flour stands to boost more market presence through robust marketing.
Mabo said the sale and transfer of assets is one of the most perfect divestments, with Dufil Prima Foods taking possession and kicking off production immediately.
Under the terms of sales agreement, Dufil Prima Foods will continue to produce and sell noodles under the brand name, ‘Dangote Noodles’ for two years before changing the brand name.
The Chief Executive Officer, Dufil Prima Foods, Deepak Singhal, confirmed the deal and described the acquirement of Dangote Noodles as strategic as they continue to seek more dominance of the noodles market.
He said the acquisition of Dangote Noodles will help Dufil Prima Foods deepen and sustain their market share as well as gain a strategic advantage in terms of several range of noodles products in their stable.
Singhal re-stated that they are not shutting down the noodles production line but are commencing production with the brand name of Dangote Noodles immediately.
To ensure seamless transition and commencement of production, he said most of the former staff of Dangote Noodles are to be employed as staff of Dufil Prima Foods.
Because of the acquisition, some former staff of Dangote noodles will transit to Dufil Prima Foods, while the rest redundant workers are being adequately compensated with mouth-watering severance package for their services to the company over the years.