Shukla: Why Olam is Acquiring Dangote Flour
Adedayo Akinwale
The Olam Group has revealed that its move to acquire 100 per cent stake in Dangote Flour was part of its continued expansion drive.
The agri-business company which equally acquired Crown Flour Mill in 2010, stressed that its plan was to become number one in the industry.
Managing Director of the Olam Group, Mr. Anurag Shukla, disclosed this in Abuja, during the 2018 Crown Flour Mill and Gala night.
He said, “We are here to celebrate our annual awards, basically we call all our mega dealers all over Nigeria so that they can discuss with each other. We listen to their problems; we try to come up with solutions.
“We also use this occasion to interact with them and also tell us what are the new things which are happening in the company.”
On the company’s expansion drive, he added: “We have submitted a binding offer to acquire 100 per cent stake in Dangote Flour Mills, that is another consideration right now.
“We planned to expand our operation since 2010, we started by acquiring Crown Flour Mill and we are happy that we have been growing our business. We firmly believe that in Nigeria this is one business that really create the maximum employment possibly.”
Shukla, also revealed that despite Olam’s expansion drive and the acquiring of Dangote flour that the company was not targeting its product for export, adding that Nigeria is huge market already with the population of 200 million people.
According to him, “We are solely manufacturing all our flour and paster and selling in Nigeria alone and we intend to keep doing it. Because there is 15 percent additional duty in the Nigeria bid, that makes us slightly uncompetitive when it is compared to other Mills in the West Africa and Central Africa regions.
“But our target is basically to sell all our product in Nigeria and that’s a big enough market.”
The managing director advised foreign companies not to be scared of coming to Nigeria to do business, saying, “I think Nigeria is the place where the action is, Nigeria is a place where there are 200 million people, there is so much if business potential, people should not be scared.”
On his part, the Chairman, Association Master Bakers and Caterers Association of Nigeria, FCT Chapter, Mr. Isiaq Abduraheem, appealed to flour millers to reduce the price of flour to ease the burden on bakers in the country.
He said that the high cost of flour has negatively impacted on the productivity and profitability of bread business, adding that bakers now buy a bag of flour for between N10, 200 and N11, 300.
He said this was the same price it was sold when the naira was exchanged for N500 per dollar.
Isiaq stated: “We appeal to millers to adjust the price of flour to reflect the present exchange rate of the naira to the dollar. Now that the naira has appreciated against the dollar at N353 to the dollar, we expect flour millers to reduce the price of a bag of flour from its present price.
“The price ought to be between N9, 500 and N10, 000 as against the current price of N10, 200 to N11, 200.”