Flour Mills of Nigeria Plc has announced a $1 billion investment plan aimed at expanding its operations over the next four years.
This is even as the company is considering a secondary listing on another stock exchange in addition to its current listing on the Nigerian Exchange (NGX).
The company’s Chairman, John Coumantaros, disclosed the plan during a recent interview where he noted that the investment will focus on boosting production capacity, restructuring its business units, and expanding into other African markets.
While stating that the capital requirements were huge, Coumantaros explained that most of the funding would be internally sourced.
“As part of the investment, Flour Mills plans to inject a minimum of $500 million into its sugar operations in Niger State, aiming to increase production from 100,000 tonnes to over 400,000 tonnes annually. Additionally, we will allocate $100 million to establish a cassava-processing plant, reducing reliance on cassava starch imports.”
Coumantaros explained that in the fiscal year 2023/2024, the company spent around N1.8 trillion on raw materials, leading to a 91 percent decline in profits, hence the need for increased backward integration.
He added that the restructuring will involve consolidating its over twenty-two business units into five separate companies to attract both technical and financial partners to drive growth.
Coumantaros revealed that the company is considering a secondary listing on another stock market to complement its presence on the NGX, stating, “Our goal is to return to the market, potentially with a dual listing as a pan-African food or agro-allied business.
“The Chairman also emphasised that the NGX would play a crucial role in their future, but the company first needs to reorganise, retool, recapitalise, and refocus to be ready for such a move.
The company said that it aims to leverage the African Continental Free Trade Area (AfCFTA) to expand its footprint across the continent, starting with West Africa.
“With the inception of the AfCFTA, we believe strongly that we shouldn’t be just looking at the Nigerian market,” Coumantaros added.
“Our dream is to have a pan-African food business that is headquartered in Nigeria.”
SOURCE: THE SUN
