Dangote Flour Mills has announced on Tuesday that it has exited the noodles business and sold its assets to Dufil Prima Foods, makers of Indomie noodles.
Dangote Flour Mills said it no longer sees the noodles business as critical to the company and revealed that in order to ease the transition process, it had offered Dufil the use of some of its facilities in the interim.
Thabo Mabo, the Group Managing Director, Dangote Flour Mills, disclosed that the divestment was in a move to focus on core areas of flour and pasta production, where the company has substantial market share.
He said with the divestment, Dangote Flour would now concentrate on its advantages in the flour and pasta industry in a bid to become more profitable by improving in areas of quality, distribution and marketing.
Thabo Mabo described the transaction as a win-win situation for Dangote Flour Mills, Dufil Prima Foods and workers of Dangote Noodles, as Dangote Flour stands to have more market presence through robust marketing.
The deal which became effective last Monday was described by Mabo as one of the most perfect divestments, with Dufil Prima Foods taking possession and commencing production immediately.
According to him, under the terms of the sales agreement, Dufil Prima Foods, according to him, will continue to produce and sell noodles under the brand name, ‘Dangote Noodles’ for two years before changing the brand name.
In his own words, the Chief Executive Officer, Dufil Prima Foods, Deepak Singhal, affirmed the deal and described the acquisition of Dangote Noodles as strategic as Dufil continued to seek more dominance of the noodles market.
Acquiring Dangote Noodles, he said, would help Dufil deepen and sustain its market share as well as gain a strategic advantage in terms of ranges of noodles products on its stable.
He corroborated Mabo’s statement that production would continue seamlessly while still maintaining the Dangote noodles brand name
In a bid to ensure seamless transition and commencement of production, Singhal stated that most of the former staff members of Dangote Noodles would be employed by Dufil Prima Foods.
With this development, some former employees of Dangote noodles would transfer to Dufil Prima Foods, while the rest had been adequately compensated with amazing severance package for their services to the company over the years.
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