Inventory market weekly overview: FBN Holdings leads 41 others, as traders produce N811bn
…Targets 700,000MT of refined sugar in 4 years
Dangote Sugar Refinery Plc (DSR) has declared an enlarge of 20.1 per cent in its income in its first-quarter end result for 2024.
The company posted a income of N122.7 billion in step with outcomes shared with the Nigerian Trade.
Right here is because the Company moreover unveiled plans to uncover 700,000 metric tonnes of refined sugar from within the neighborhood grown sugarcane within the next four years, thru its Backward Integration Programme (BIP).
Chairman of Dangote Sugar Refinery Plc, Aliko Dangote stated this on the company’s 18th Annual Total Meeting (AGM) held the day past in Lagos.
Dangote, on the AGM, acknowledged in alignment with the Federal Executive of Nigeria’s policy guidelines, DSR continues to focal level on and toughen its Backward Integration Venture (BIP) by deploying and reviewing venture systems to be obvious atmosphere pleasant delivery.
He illustrious that the 700,000 metric tonnes would meet 50 p.c of the most modern market question for refined sugar. Based on him, the 10-twelve months sugar pattern notion to uncover 1.5 million MT of sugar each and each year from within the neighborhood grown sugarcane stays a germane roadmap to the attainment of the Company’s targets.
“Our focal level is on reaching the revised targets situation for DSR Numan Operations, Dangote Adamawa Sugar Puny, and Nasarawa Sugar Company Puny, while we are hopeful that the Taraba Roar Executive will unravel the community price disorders that accept as true with led to the stoppage of activities on the Dangote Taraba Sugar Puny, Lau/Tau venture.”
He added that “At some level of the twelve months under overview, despite the challenges we were faced with, the company greatly scaled up investment within the Backward Integration Initiatives with the continued expansion of the DSR Numan factory refining capacity from 3,000TCD to 9,800TCD twelve months-terminate.
“The factory will seemingly be elevated with an additional 5,200TCD to 15,000 TCD (tonnes of cane beaten per day) at closing to fulfill the necessity in check of the massive land pattern activities moreover going on on the plan. The aim is to attain 24,200 hectares in complete by the twelve months 2029.”
He moreover emphasised that despite the detrimental impression on the replace atmosphere by the trusty enlarge within the inflationary style, lack of liquidity and FX to fund the company’s equipment import among others for the backward integration tasks, concerted efforts are ongoing to stable the wanted funds for the pattern of the Nasarawa Sugar Company Puny venture at Tunga in Alarm Native Executive Space of the verbalize.
“This can enable the company to put in space the wanted infrastructure for the eventual graduation of plump-scale manufacturing and be obvious that the Dangote Sugar Backward Integration ‘Sugar for Nigeria Venture’ is accomplished. Within the terminate, over $700 million investment would be dedicated to the Backward Integration Programme,” he added.
Dangote acknowledged that the Dangote Sugar (Ghana) Puny, change into established as a subsidiary of the Company all the blueprint thru the twelve months under overview, in accordance with the notion to enlarge its presence within the sugar replace all the blueprint thru Africa.
On outlook, he stated that “achievement of the dreams of the Sugar Backward Integration Master Knowing stays our focal level. This can gallop a long manner in delivering the anticipated advantages, particularly in FX financial savings and cushioning its impression on our operations amongst diverse advantages to the company, all stakeholders, and the nation.”
Neighborhood Managing Director/CEO of Dangote Sugar, Ravindra Singhvi acknowledged, “No topic these challenges, we are resolute and targeted on the delivery of our replace targets within the medium to long speed.”
He identified that “as we proceed to navigate thru the shortage and excessive value of distant places replace, escalating charges of uncooked materials amongst others, our focal level is to toughen the effectiveness of our present chain processes, optimise value, toughen our operational efficiencies and delivery on our Sugar for Nigeria backward integration venture.”
He acknowledged, “The target is to uncover as a minimum 1.5MT refined sugar every twelve months from within the neighborhood produced sugarcane at our built-in sugar manufacturing estates, which is predicted to alleviate some stress on charges and our question for distant places currency.
“Success of a sustainable replace stays one among our key systems and concerted efforts were made against sustaining the achievements we’ve recorded within the previous,” Singhvi added.
