Dangote to invest additional N106bn in local sugar production | Touch Latest Local,World,Tech,Entertainment,Health,Sport News
21 February 2018 00:00:00 AM Breaking News

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Dangote to invest additional N106bn in local sugar production

Africa’s richest man, Alhaji Aliko Dangote, plans to invest additional N106 billion in domestic sugar production in the second phase of a backward integration programme (BIP), which had seen the multi-billionaire investing N101 billion under the first phase.

The new investment plan was unveiled on Tuesday during a briefing on the operations and growth plan of Dangote Sugar Refinery (DSR) Plc at the Nigerian Stock Exchange (NSE). Aliko Dangote chairs the board of directors of DSR, a company where his holding company-Dangote Industries Limited (DIL), holds more than 70 per cent majority equity stake.

Acting group managing director, Dangote Sugar Refinery (DSR) Plc, Engr. Abdullahi Sule, who spoke on the new investment plan, said the sugar company will soon commence the phase two of its sugar master plan.

He said the company will be investing N106 billion over the next six years under its BIP aimed at making Nigeria self sufficient in sugar production.

According to him, the highpoints of the new investment plan will include acquisition of five large sugar factories, 108,000 hectares of land under cultivation and 1.08 million metric tonnes per annum of refined sugar from locally grown sugar cane annually.

He added that there would also be 130 million litres of Ethanol potential across all sites, animal feed and surplus power generation capacity to be sourced from cane fiber and over 75, 000 jobs to be achieved under the six-year second phase master plan.

He noted that how the project will be financed is yet to be determined by the management, saying the company remains zero debt and has the capacity to borrow. He however said that 20 per cent of the project will be financed through equities.

“Achievement of our BIP plan and growing our market share remains our focus, and efforts are geared towards achievement of effective resource optimisation and cost management; drive for greater efficiency especially in supply chain; human capacity building and route to market redefinition,” Sule said.

First quarter results of DSR for the period ended March 31, 2017 showed that DSR grew sales by 83 per cent to N59.5 billion in first quarter 2017 as against N32.6 billion recorded in comparable period of 2016.

Gross profit increased by 16 per cent to N7.84 billion in 2017 as against N6.77 billion in 2016. Profit after tax rose to N4.76 billion in first quarter 2017 as against N3.34 billion in first quarter 2016.

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