By David Agba Abuja
As part of its regular business portfolio review, Dangote Flour Mills (DFM), has exited its noodles business as it does not consider it strategic. Th e company has sold the assets of Dangote Noodles to Dufi l Prima Foods, makers of Indomie noodles. To smoothen the transition, DFM has off ered Dufi l the use of some of its facilities on an interim basis.
Th e noodles business was part of Dangote Flour Mills which the Dangote Group recently re-acquired from Tiger Brands. Group Managing Director, Dangote Flour Mills, Th abo Mabo, said the divestment is part of strategies of focusing on core areas of fl our and pasta production where the company has substantial market share.
He said that with the divestment, Dangote Flour will now focus on its strengths in fl our and pasta and become more profi table by improving in areas of quality, distribution and marketing.
Th e transaction which became eff ective last Monday, according to him, “is a win-win situation for Dangote Flour Mills, Dufi l Prima Foods and staff of Dangote Noodles”, as Dangote Flour stands to boost more market presence through robust marketing He described the sale and transfer of assets as one of the most perfect divestments, with Dufi l Prima Foods taking possession and kicking off production immediately.
Under the terms of sales agreement, Dufi l 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.
