Flour Mills of Nigeria Plc has introduced plans to take a position as much as $1 billion over the following 4 years to broaden its operations within the nation.
The corporate’s Chairman, John Coumantaros, disclosed this just lately, emphasising that this displays a dedication to rising their funding in Nigeria. In keeping with Coumantaros, the corporate plans to take a position $500 million into its sugar operations in Niger State, to extend manufacturing from the present 100,000 tons to over 400,000 tons yearly.
Moreover, they will allocate $100 million to determine a cassava-processing plant geared toward eliminating cassava starch imports. Within the full yr of 2023/2024, the corporate stated it expended N1.8 trillion on uncooked supplies sourcing, leading to its revenue declining by 91 per cent.
Coumantaros additionally touched on plans to broaden their breakfast cereal product line and additional defined that a lot of the funding will probably be internally sourced. “The requirement for capital goes to be giant, and naturally, we will probably be backing most of it. However whenever you develop, you may’t do every thing your self. You might want to invite these consultants of one of the best within the subject to help you and help you and convey a few of that technical experience so we will add extra enterprise, extra jobs right here within the nation,” he stated.
The corporate additionally plans to restructure its operations after native associate, Excelsior, provided to purchase out its minority stake and go non-public. The corporate additionally plans to restructure its over 22 enterprise models into 5 separate corporations, in line with Coumantaros.
“We goal to draw each technical and monetary companions to help the expansion of our sugar operations and meals enterprise. We’ve got formidable plans for funding and growth,” he stated.
Past that, he additionally disclosed that they’re leveraging the Africa Continental Free Commerce Space (AfCFTA) to broaden throughout the continent ranging from West Africa. “With AfCFTA, we imagine that we shouldn’t be wanting on the Nigerian market alone and our dream is to have a pan-African meals enterprise headquartered in Nigeria. We’ll reap the benefits of the AfCFTA in order that we will broaden our footprint throughout Africa.”
In keeping with him, this will seemingly embrace a twin itemizing on the NGX and different inventory market. He expressed the corporate’s intention to relist after it undergoes repositioning, noting that its final aim is to return to the market, doubtlessly with a twin itemizing as a pan-African meals or agro-allied enterprise.
Stressing that the Nigerian Inventory Trade would play an important position of their future, he stated the corporate first wanted to reorganise, retool, recapitalise and refocus to be prepared for such a transfer.
This funding is approaching the heels of BUA Meals Plc’s latest announcement of its want to broaden its wheat flour milling capability to 2.5 million MTpa. It might be recalled that BUA Meals signed an settlement with IMAS, a Turkish flour milling tools producer, to construct 4 state-of-the-art wheat and flour milling factories with a cumulative milling capability of three,200 tonnes per day.
