Dangote Exits Noodle Business! Sells Off Dangote Noodles Assets…
Tuesday, April 18, Dangote Flour Mills announced its exit of its noodles business.
Consequently, Dangote Flour has sold off the assets of Dangote Noodles to Dufil Prima Foods, makers of Indomie noodles.
The company made the disclosure in a statement that its regular business portfolio review revealed that the noodle business was not strategic to its vision.
The statement said:
“As part of its regular business portfolio review, Dangote Flour Mills (DFM) has exited its noodles business as it does not consider it strategic.
“The company has sold the assets of Dangote Noodles to Dufil Prima Foods, makers of Indomie noodles.
“ To smoothen the transition, DFM has offered Dufil the use of some of its facilities on an interim basis.
“The noodles business was part of Dangote Flour Mills which the Dangote Group recently re-acquired from Tiger Brands.”
Thabo Mabo, Dangote Flour Mills, Group Managing Director said the divestment was part of strategies of focusing on core areas of flour 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 flour and pasta and become more profitable by improving in areas of quality, distribution and marketing.
Dangote Exits Noodle Business For Indomie
“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.”
The GMD described the sale and transfer of assets as one of the most perfect divestments, with Dufil Prima Foods taking possession and kicking off production immediatel.
He further stressed that “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.”
Confirming the deal, Deepak Singhal, Chief Executive Officer, Dufil Prima Foods, described the acquisition of Dangote Noodles as strategic as they continue to seek more dominance of the noodles market.