DIL Repositions Flour Subsidiary to Deliver Value to Stakeholders
Dangote Industries Limited (DIL), which has reacquired Tiger Branded
Consumer Goods (TBCG) has begun repositioning of the company for better
performance and delivery of value to all stakeholders.
DIL had sold TBCG, formerly Dangote Flour Mills Plc to Tiger Brands, a
leading South African fast-moving consumer goods company in 2012. But
after years of losses, Tiger Brands announced its withdrawal of further
funding in November 2015.
However, in a bid to prevent the company from going under and save several
jobs, DIL had to repurchase TBCG last December. DIL is now making fresh
efforts to reposition the firm and make it perform and deliver returns to
shareholders like other subsidiaries in the Dangote Group.
To this end and in line with high corporate governance tenets, Aliko
Dangote has left the board, while Asue Ighodalo, a renowned corporate
lawyer and Chairman of Sterling Bank Plc has been appointed as its new
chairman.
Also, DIL appointed Alhaji Ahmed Shehu Yakasai as Executive Director,
Supply Chain and Deputy Chief Executive Officer, while Ms. Halima Dangote
was appointed Executive Director, Commercial. Other members of board of
the company are: Mr. Thabo Mabe(MD/CEO);Mr. Sudarshan Kasturi(executive
director, Finance); Mr. Peter Matlare; Mr. Olakunle Alake;Mr. and Arnold
Ekpe.
Besides, the shareholders of the company last Thursday approved that its
name be changed from TBCG Plc to Dangote Flour Mills Plc, just as its
accounting year was changed from September to December.
Addressing the shareholders, Ighodalo said the Nigeria's economy had been
deeply impacted by the decline in the price of crude oil, her major
source of foreign exchange, which has caused scarcity of foreign exchange
for raw material imports and lead into increases in input costs.
However, he said while this trend would continue for the immediate future,
he assured the shareholders that the Board and Management of the company
would continue to mitigate the effect if these challenges and would work
extremely hard to turn around the fortunes of the company.
He said following the repurchase of the entire shareholdings of Tiger
Brands, additional capital has been injected into the company.
“Our processes and management have been strengthened in order to stabilise
the business and place it on a sustainable path aimed at creating value
for its stakeholders,” Ighodalo said.
The chairman, who expressed appreciation to the staff, noted that the
company would continue to place high priority on their training and
development, seek and retain the best the “best talents in our continued
pursuit of operational and services excellence.”
He stated that the customers are the key partners in the business, which
continue to remain the cornerstone of the company.
“Notwithstanding the challenges faced during the year, we continued to
receive excellent patronage from our customers. We are immensely grateful
for this unwavering support,” the chairman said.
When DIL repurchased TBCG last December a stock market operator had said:
“Going by every indication, the future of the company was very doubtful
and that was risky for the employees which are over 3,000 Nigerians apart
from others who benefit from the company's services through other
ancillary services. The return of DIL is therefore a big relief and good
decision to save the jobs of the staff of the TBCG.”
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