Dangote
Group has quit the production of noodles, selling the assets of Dangote Noodles
to Dufil Prima Foods, makers of Indomie noodles.
A statement
by Thabo Mabo, group managing director (GMD), Dangote Flour Mills (DFM), said
the group exited noodles production because it did not consider it strategic.
Mabo it
would focus its energies on flour and pasta production in order to improve in
areas of quality, distribution and marketing.
The
agreement reached by both parties sees Dufil producing noodles under the
Dangote brand name for two years before changing it.
Deepak
Singhal, chief executive officer, Dufil Prima Foods, while speaking said
acquiring Dangote noodles would help his company “deepen and sustain their
market share as well as gain a strategic advantage in terms of several range of
noodles products in their stable”.
Singhal said
Dufil would commence production with the brand name of Dangote Noodles
immediately.
He added
that most of the former staff of Dangote Noodles would be employed by Dufil,
stating that redundant workers would be compensated with good severance package
for their services to the company over the years.
(Ynaija)
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