The President and Chief Executive of Dangote Foods Group, Aliko Dangote has disclosed a massive investment have been made into a project that will curb the price challenges the company’s Sugar and Pasta products are currently faced with in the local market.
Dangote stated this at the Annual Company’s Customer Celebration and Distributors’ Awards’ Night, held on Monday. According to Africa’s richest man, there have been price challenges due to the influx of unlicensed and substandard grey imports, and the customers have been at the receiving end.
While acknowledging the patience and loyalty of Dangote Foods’ customers across Nigeria, Dangote promised distributors and customers present at the event that the price challenges will soon be history as the company has invested in the country in line with their Backward Integration Project.
“My special commendation goes to Dangote Sugar and Pasta customers who, despite the price challenges posed by influx of unlicensed and substandard grey imports stood by us.
There is good news for you.
“Such challenges will soon become history as we have invested massively in the country in line with our Backward Integration Project. In the sugar sector, we developed a sugar backward integration project plan targeted at the production of 1.5MT-2.0MT of refined sugar from various sites across Nigeria, in the next 10 years.” Dangote Said
This he said will cause cost reductions and improve profit to the customers. Adding that the sugar project will position Nigeria on the global map of sugar producers.
Cutting Nigeria’s unemployment rate
Aside from solving the price challenges, the project will also reduce the unemployment rate in Nigeria. During his speech at the Awards’ Night, Dangote stated that the Backward Integration Project will contribute to the employment rate in Nigeria, with about 75,000 to 150,000 persons will gain employment. This project will also ensure big savings on foreign exchange.
Product launch and inroads
Dangote Foods’ Group has been busy with innovational products and making inroads to conquer new grounds within Nigeria’s communities. Aside from expanding their capacity, Dangote also disclosed the company recently relaunched the Dangote Semolina and Wheatmeal, this he said is in line with Dangote Flour Mills’ four-prong strategy of expansion, increase user group with innovations, upgrading capabilities and enhancing our product portfolio.
“We have recently relaunched our Dangote Semolina and Wheatmeal, while making Dangote All Purpose Flour available to more regions in response to your yearnings. In our characteristic manner of being innovation and thought-leaders, we introduced the 1st handy pack size of Flour, Dangote Bread Flour 1.5kg- for in-home use.
“To cap it all, we initiated the 1st World Puff Puff Day to put Nigeria again on the world map by celebrating our favourite indigenous snack and surpassing existing Guinness World Records.”
Dangote business performance
Last year, 2018, it was a mixed performance for some subsidiaries of the Dangote Foods’ Group, which included NASCON Allied Industries, Dangote Sugar Refinery, and Dangote Flour Mills. Dangote acknowledged this in his speech, but was quick to brush it off, stating that such fluctuations in business performance are expected.
“You are all aware that we are celebrating 2018 against all odds. Our Foods businesses recorded mixed results in the year with NASCON growing while DSR and DFM had a very difficult year. Fluctuations in performance are known to occur in the life of businesses but the greater part is that you persevered with us. This underlines our theme of Better. Stronger. Together.”
Apapa road construction project
During the event, Dangote utilised the medium to douse the worry of motorists and business owners around the Apapa road axis. Dangote reiterated that his company, AG Dangote Construction Company is committed to completing the road construction this year. The Apapa gridlock in a Nairametrics report, may have caused Dangote Group over N15 billion last year.
“I must also appreciate each and everyone of you for your patience in putting up with Apapa gridlock, its increased turnaround time and cost to business. To reduce the traffic gridlock, we invested significantly in the Apapa road reconstruction project. The completion in 2019 should bring massive relief to our three food companies as well as our competitors operating from the axis. ” Dangote Said