Chief Executive Officer of Dangote Sugar Refinery Plc, Ravindra Singhvi has assured that the proposed merger between Dangote Sugar Refinery, NASCON Allied Industries, and Dangote Rice to form Dangote Foods Plc will grow the business and yield high returns to key stakeholders.
Ravindra who spoke on a television programme said the merger when completed will bring economies of scale and cost reduction as the evolved company will gain with an increase in production. The cost, according to him, will now be spread over many goods.
According to him, Dangote Foods will have operational efficiencies, as there would be a reduction in the time needed to obtain raw materials, fuel, manpower, etc for production. Husk and biomass from Rice and Sugar Units will be useful to generate power for the running of the plants.
Also, the merger, according to Ravindra, will improve the supply side of the food industry and further advance the backward integration strategy of the Group as resources, machinery, and skilled manpower are to be harnessed to drive the process.
The new company evolving has the potential for more geographical spread than the legacy companies as the products will be readily available in all the niche markets of the former and even more given the combined assets in terms of manpower, product range, transport, and warehouses.
Speaking on the impact of deregulation of the foreign exchange market, he lamented that many manufacturing companies have sustained forex-linked losses in the period as they made provisions for the slump in the value of the Naira against the dollar. Manufacturers, he noted are making provisions monthly to take care of the fluctuations in the value of the Naira.
He said, ‘The headwinds are really there. So, we have to be careful in provisioning for changes in the value of the local currency. The floating of the Naira led to a massive fall in its value. This has affected our operations in the sugar industry.’
Meanwhile, Dangote Cement Transport Obajana has commenced the training of youths from Oyo, Iwaa, Apata, and Obajana for the acquisition of technical skills to align with its commitment to Corporate Social Responsibility (CSR).
The Technical Skills Acquisition programme, according to the Plant Director, Dangote Cement Plant, Obajana, J.V Gungune, is to equip the youths who are mostly secondary school leavers with entrepreneurial skills around its catchment areas.
During the programme, the trainees who are to be paid monthly stipends are expected to add great value to their communities on completion of the training.
The training focuses on auto mechanic, auto electrical, welding, and panel beating/fabrication
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