The food processing unit of Dangote Group, Dangote Flour Mills, has given up its noodles assets to Dufil Prima Foods, the makers of Indomie noodles.
The company said the decision to sell the assets was part of its regular business portfolio review as it no longer considers noodles business strategic.
To smoothen the transition, Dangote Flour Mills has offered Dufil the use of some of its facilities on an interim basis.
The noodles business was part of Dangote Flour Mills which the Dangote Group recently re-acquired from Tiger Brands.
Group Managing Director, Dangote Flour Mills, Thabo Mabo, said the divestment is part of strategies of focusing on core areas of flour and pasta production where the company has substantial market share.
The transaction which became effective last Monday, according to him, “is a win-win situation for Dangote Flour Mills, Dufil Prima Foods and staff of Dangote Noodles”, as Dangote Flour stands to boost more market presence through robust marketing.
With this divestment, Dufil Prima Foods will be taking possession and kicking off production immediately.
Under the terms of 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.
Chief Executive Officer, Dufil Prima Foods, Deepak Singhal, confirmed the deal and described the acquirement of Dangote Noodles as strategic as they continue to seek more dominance of the noodles market.
He re-stated that they are not shutting down the noodles production line but are commencing production with the brand name of Dangote Noodles immediately.
To ensure seamless transition and commencement of production, he said most of the former staff of Dangote Noodles are to be employed as staff of Dufil Prima Foods.