It is normal for businesses to sometimes not go the way its envisaged. Many a time unforseen conditions and eventualities could snuff the vision out of such business ideas. It is now left for a business man to know when to beat a retreat at such instances. It takes a totally wise business owner to make the necessary decisions and this however doesn’t portray such a business, a failure. It only shows diversity and discretion in business. This was The realisation yesterday when Dangote, announced it has exited its noodles business and has sold the assets to Dufil Prima Foods, makers of Indomie noodles.
The company said in a statement that its regular business portfolio review reveal that the noodle business was not strategic to its vision. Alhaji Aliko Dangote stated, “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.” Group Managing Director, Dangote Flour Mills, Thabo Mabo, 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. Mabo said,“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.”
He 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, stressing, “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.” Chief Executive Officer, Dufil Prima Foods, Deepak Singhal, confirmed the deal and described the acquisition of Dangote Noodles as strategic as they continue to seek more dominance of the noodles market.
See Photos while negotiating….
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