As part of its divestment strategy to focus on core flour and pasta production, Dangote Flour Mills has offered its noodles arm to the maker of Indomie, Dufil Prima limited. On an interim basis.
Group Managing Director, DFM, Mr. Thabo Mabo, said that with the divestment, the company would now focus on its strengths in flour and pasta and become more profitable by improving in areas of quality, distribution and marketing.
The transaction, which became effective last Monday, according to him, is 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.
Mabo described the sale and transfer of assets as one of the most perfect divestments, with Dufil Prima Foods taking possession and kicking off production immediately.
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.
The Chief Executive Officer, Dufil Prima Foods, Mr. Deepak Singhal, confirmed 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 several range of noodles products on its stable. Dufil was not shutting down the noodles production line but was commencing production with the brand name of Dangote Noodles immediately.”
