Temitope
Temitope Akinola
The management of Flour Mills of Nigeria Plc has reiterated the commitment of the company to focus on expanding its food production business on the African continent.
According to a statement credited to the Chief Executive Officer, Paul Gbadebo, the next phase of growth of the company will target joint ventures and acquisitions in other countries. The statement did not include details on the specific countries in Africa the company is targeting and when the implementation will start.
Meanwhile, Flour Mills is pulling off its stake in other sectors in order to focus on food production. Last year, the company sold its stake in United Cement Company of Nigeria Limited to Lafarge Africa. The company injected an investment capital of over $1 billion in food production in the last five year. This includes; feed-mill expansion, sugar refining and vegetable oil production.
The company is leveraging on recent developments in the Nigerian economy which is being geared towards a self sustaining. For example, the CBN policy of restriction of the sales of dollars to importers of goods which is an effort to conserve foreign exchange and boost local production is expected create more market opportunities for local production of foods in Nigeria. One of the plans of Flour Mills is to invest in Sorghum mills at its Flour Mills unit in Northern Nigeria. The production targets about 20,000 to 30,000 metric tons of sorghum annually in the next three to 5 years.
Further plans of the company include raising as N40bn ($202 million) in equity this year or early next year in order to reduce debt and increase working capital.
According to a statement credited to the Chief Executive Officer, Paul Gbadebo, the next phase of growth of the company will target joint ventures and acquisitions in other countries. The statement did not include details on the specific countries in Africa the company is targeting and when the implementation will start.
Meanwhile, Flour Mills is pulling off its stake in other sectors in order to focus on food production. Last year, the company sold its stake in United Cement Company of Nigeria Limited to Lafarge Africa. The company injected an investment capital of over $1 billion in food production in the last five year. This includes; feed-mill expansion, sugar refining and vegetable oil production.
The company is leveraging on recent developments in the Nigerian economy which is being geared towards a self sustaining. For example, the CBN policy of restriction of the sales of dollars to importers of goods which is an effort to conserve foreign exchange and boost local production is expected create more market opportunities for local production of foods in Nigeria. One of the plans of Flour Mills is to invest in Sorghum mills at its Flour Mills unit in Northern Nigeria. The production targets about 20,000 to 30,000 metric tons of sorghum annually in the next three to 5 years.
Further plans of the company include raising as N40bn ($202 million) in equity this year or early next year in order to reduce debt and increase working capital.
