Dangote Gives Up On Noodles Production, Sells Assets To Indomie
SAN FRANCISCO, April 19, (THEWILL) – Dangote Group has given up on production of Dangote Noodles and has sold the assets to Dufil Prima Foods, producers of Indomie noodles.
According to the Group Managing Director (GMD) of Dangote flour mills (DFM), Thabo Mabo, the group exited the production of noodles because it did not consider it strategic saying it would now focus its strengths on flour and pasta production in order to improve in areas of quality, distribution and marketing.
He revealed that based on the agreement with Dufil, they would continue to produce noodles under the Dangote brand name for two years before changing it.
The Chief Executive Officer of Dufil Prima Foods, Deepak Singhal, in the statement, disclosed that acquiring Dangote noodles would help his company deepen and sustain their market share as well as gain a strategic advantage in terms of several range of noodles products in their stable.
Singhal said Dufil would commence production with the brand name of Dangote Noodles immediately assuring that most of the former staff of Dangote Noodles would also be employed by Dufil.
However, the redundant workers would be compensated with good severance package for their services to the company over the years.