BREAKING: Dangote sells his noddles company to Indomie

Emerging reports suggest that Dangote has sold his
noddles company to Indomie
- The arrangement also involves the transitioning of
some Dangote staff to Indomie
Dufil Prima Foods, makers of Indomie noodles, have
bought over the noodles section of Dangote Flour
mills.

According to the Dangote, selling the assets to indomie
is a more viable option.
In an announcement on Tuesday, April 18, by the
company, they said in order to smoothen the
transition, it had offered Dufil the use of some of its
facilities on an interim basis.
The noodles business was part of the DFM, which the
Dangote Group recently reacquired from Tiger Brands.

The Group Managing Director, Dangote Flour Mills,
Thabo Mabo, said the divestment was part of strategies
of focusing on core areas of flour and pasta
production, where the company has substantial
market share.

He said that with the divestment, Dangote Flour would
now focus on its strengths in flour and pasta and
become more profitable by improving in areas of
quality, distribution and marketing.
The transaction, which became effective last Monday,
according to him, is a win-win situation for Dangote
Flour Mills, Dufil Prima Foods and workers of Dangote
Noodles, as Dangote Flour stands to have more market
presence through robust marketing.
Mabo described the sale and transfer of assets as one
of the most perfect divestments, with Dufil Prima
Foods taking possession and kicking off production
immediately.

Under the terms of the sales agreement, Dufil Prima
Foods, according to him, will continue to produce and
sell noodles under the brand name, ‘Dangote Noodles’
for two years before changing the brand name.

The Chief Executive Officer, Dufil Prima Foods, Deepak
Singhal, confirmed the deal and described the
acquisition of Dangote Noodles as strategic as Dufil
continued to seek more dominance of the noodles
market.

Acquiring Dangote Noodles, he said, would help Dufil
deepen and sustain its market share as well as gain a
strategic advantage in terms of several range of
noodles products on its stable.

He restated that Dufil was not shutting down the
noodles production line but was commencing
production with the brand name of Dangote Noodles
immediately.

To ensure seamless transition and commencement of
production, Singhal stated that most of the former staff
members of Dangote Noodles would be employed by
Dufil Prima Foods.

With the new development, some former employees of
Dangote noodles would transit to Dufil Prima Foods,
while the rest redundant workers had been adequately
compensated with mouth-watering severance package
for their services to the company over the years.

Singhal added that the terms of the severance package
were agreed with the relevant trade unions and the
affected workers were paid off immediately to enable
those retained by the new owners to start on a fresh
contract, while those who would not be retained would
not have to wait for their benefits.