Dangote Sugar Refinery Plc has said its numerous investments in strategic processes will lead to increased profitability for its shareholders in the next few months.
The Managing Director, DSR Plc, Mr. Graham Clark, who said this, expressed the company’s commitment to ensure higher returns for the shareholders in the coming years.
Clark spoke during a meeting at the Nigerian Stock Exchange on Tuesday, stressing that he would leverage his vast experience in sugar business to increase the company’s business.
He noted that the company’s recent acquisition of farm machinery worth $35m from Panafrican Equipment was in line with the backward integration policy of the Federal Government and the National Sugar Development plan.
“This is yet another milestone in the Dangote Sugar journey as we work towards the achievement of our strategic sugar master plan to produce 1.5 million metric tonnes of sugar per annum, locally,” Clark said.
According to him, there will be meaningful collaboration between the board and management of the company to increase its market share and sustain its leadership position.
Clark said the company was embarking on backward integration plan to stimulate sugar production in Nigeria and ultimately make the product sufficient in the market.
He said, “We will increase our capacity significantly; this will enable us to reach our retail market easily. We are bringing agriculture back to rural Nigeria and we have plans to be one of the largest commercial farmers in Africa. Also, we will bring new skills to rural Nigeria and employ many people.
“We want to assure our shareholders that there will be exciting things taking place in the next few years. We see our sugar development story effectively moving from now through a period of five to 10 years, when we will develop new sugar plantations, new sugar factories across the country.”
Clark spoke on the plans by the company to involve Nigerian farmers in its activities, adding,
“We will embrace Nigerian farmers to join us in the production of our raw material, which is sugarcane. We will stimulate considerable economic activities in the rural communities.
“Dangote Sugar is actively pursuing a backward integration master plan with a target of producing a total of 1.5 million tons of sugar locally per annum. The subsidiary, Savannah Sugar Company Limited, Numan, Adamawa State is geared towards meeting this target.”
Dangote Sugar share price dropped below N10 to N9.44 at close of trading Friday 14 March.