Nairametrics| Procter and Gamble has sold its Ibadan Healthcare Plant to Elixir Global Manufacturing Food Limited, a Nigerian entity operating under the Chanrai Summit Group, and a sister company of Fareast Mercantile Co Ltd. Elixir Global also confirmed the deal saying that it had made a 100 % acquisition of the plant.
Along with the plant itself, a Director at Elixir Global, Sivaswami Raghavan, said that company has also obtained the right to manufacture and sell these brands within Nigeria and the Sub-Sahara African markets, through a Brand Licensing Agreement, BLA, valid up to 20 years. The only exception was South Africa.
“The deal also has the rights to have these products and its variants manufactured in other third party manufacturing locations both within and outside Africa to meet with the specific requirements of the large market that it intends covering over the brand licensing period,” Raghavan said.
The Ibadan plant produces medicated throat drops well known and accepted in the Nigerian market under the brands Vicks Blue and Vicks Lemon Plus.
Khululiwe Mabaso, Head Corporate Communications/Associate Director, Procter & Gamble, Sub-Saharan Africa said: “P&G is delighted to partner with a local Nigerian party to continue building the Vicks brand not only in Nigeria but across many other parts of Africa.”
Where are Nigerian investors who are capable of buying over the P&G investment at Ibadan, Oyo State? Why was such a viable industrial plant be given to Chanrai Summit Group ( an Indian controlled business in Nigeria) It is high time the Federal Government encourages potential Nigeria investors to engage in investing in a project like this that employ many Nigerians! My fear about this is the exploitative attitude of most Indian business in Nigeria. If the Asians are not ready to regard Nigerians as equal partners they should stop exploiting the wealth of the nation at the advantage of foreigners. No one should misquote my judgment on this issue but take a laudable assessment of what should have happened had the potential Nigeria investors were given the opportunity to buy the one hundred percent of the equity of Ibadan Healthcare Plant. I have the belief that if Nigerians were giving the opportunity, a greater proportion of the profits realized from company would have stayed in Nigeria rather than foreign portfolio. There are Nigerians in diaspora, or elsewhere, who will be interested in such ventures given the opportunity.