Nigeria: Dangote Flour Mills Dominates Market On Production Expansion

10 September 2018

In maintaining its leadership position in the industry, Dangote Flour Mills Plc has continued to implement its aggressive strategies with its new introduced kind of multipurpose flour brand into the Nigerian market.

The company, as other subsidiaries of the Dangote Group, is exploring new markets and embarking on aggressive expansion strategy by investing in additional production plants and a mill.

Dangote Flour Mills Plc is optimistic that the newly-introduced, All Purpose Flour (APF) flour brand will cause competition to swing in its favour by shoring up market share.

Flour which is the major ingredient for production of various confectionaries such as biscuit, bread and other snacks, has witnessed growth following the ban on importation of flour products into the country, a step that has drastically reduced the influx of imported flour products. Flour imports have also been reduced by the cassava inclusion policy which mandated all flour millers to use between 10 to 20 percent of cassava flour in the production of bread. Local manufacturers control almost 85 percent of the flour market with the rest going to smuggled imports. The sector is also said to be growing as a result of increasing urbanisation, along with growing popularity of flour products as a food substitute.

The sector which is said to be driven by population growth estimated to be about 180 million is further enhanced by ban on imported flour, according to industry watchers. Industry watchers have also projected a continued growth for the market over the next years, a segment consumers will continue to patronise despite the economic hardship

Dangote Flour said that the newly launched All Purpose Flour by the Dangote Flour Mills has tremendously excited distributors and bakers, as they call it "finest and best performing flour."

Bakers expressed their excitement on the affordability and multipurpose brand during the launch recently in Kano. The affordable price, they say, will enable them to make more profit in their businesses.

About 80 bakers where invited to a bakery where the One-Stop product was tested to ascertain its yield and value addition over other brands in the market.

Chairman of Association of Master Bakers and Caterers in Kano Alhaji Muazu Gidauniya said he was elated by the new product that has already been tested by his members, adding that the new product will not displace the old Bread Flour which has been used for years.

A renowned distributor of Dangote Flour in Kano and secretary general of Masters Bakers, Kabiru Abdullahi said he was optimistic that the product will move the market.

Executive director, Commercial, Halima Aliko Dangote said, the new brand, popularly known as APF is part of the company's strategy to reward its customers and shore up market share in the country.

The APF is produced with high quality wheat and designed to work for all your baked, fried or cooked flour products, be it bread, gurasa, meat pie, egg rolls, puffpuff, chinchin and a range of others.

The executive director added, "some of you who attended the baking test have already testified about its performance. Some of the products that were baked this morning are here for you to see. It is now time to experience it yourselves. As the name implies, it can be used for bread, pastries, cakes, meat pie and even fried snacks like puff puff, samosa, spring rolls and a range of others. It is very versatile."

The Dangote Flour Mills also unveiled a promo tagged, 'My own don beta' where dealers have the opportunity of winning a variety of prices. Speaking, regional sales manager of the company, Alhaji Nura Rabo said he was happy about the excitement the new brand has generated.

He said already distributors and sub-dealers were stampeding themselves to place order for the new product.

Meanwhile, at the company's recently held annual general meeting in Lagos, The chairman, Board of Directors, Dangote Flour Mills, Mr. Asue Ighodalo, said the board and management of the company would continue to develop strategies to harness opportunities occasioned by improvements in economic indices while mitigating the adverse effects of continued and emerging threats to the performance and growth of the business.

He stated, "Our key focus areas in the year 2018 include improving our customer engagement strategies, strengthening our supply chain capabilities, assuring best-in-class product quality and managing our costs.

"Our customers remain our key partners in the business. Their patronage, continued support and unflinching loyalty contributed immensely to our performance in the year. I assure you that we will strive to serve you better and employ processes that make your interactions and engagement with us hitch-free and pleasurable."

The chairman said the company would continue to place high priority on the training and development of its employees, and seek and retain the best talents available in the continued pursuit of operational and service excellence.

He added, "Our greatest strength lies in our committed, hardworking and resourceful team of employees.

"I look forward to greater performance from our teams to ensure that we become the number one flour milling company in West Africa by the quality of our products, market share and performance ratios."

Opportunity to leverage on the stock, capital market analysts said that the Dangote Flour stocks is leveraging on the strength of its affiliates such as Dangote Sugar Refinery and Dangote Cement, saying that Dangote Flour Mills Plc has improved its customer engagement strategies and strengthen supply chain capability to surpass its 2017 performance.

Dangote Flour Mills commenced operations in 1999, as a division of Dangote Industries Limited (DIL), one of Nigeria's largest and fastest growing conglomerates. Following the strategic decision of DIL to unbundle its various operations, Dangote Flour Mills was incorporated in 2006. The restructuring was completed in January, 2006 when the Federal High Court sanctioned a scheme of Arrangement wherein all the assets, liabilities and undertakings of the erstwhile flour division of DIL was transferred to Dangote Flour Mills.

From an initial installed capacity of 500 MT per day at its Apapa mill, Dangote Flour has expanded rapidly by opening in quick successions three other flour mills in Kano (2000), Calabar (2001) and Ilorin (2005). Each of the mills started with an installed capacity of 500 metric tonnes (MT) per day but all of them have subsequently expanded resulting in a total installed capacity of 5,000 MT per day.

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