Backward Integration: Dangote Targets 700,000MT of Refined Sugar in Four years

…As Q1 revenue rise by 20.1% to N122.7bn

Dangote Sugar Refinery Plc (DSR) has unveiled plans to produce 700,000 metric tonnes of refined sugar from locally grown sugarcane in the next four years, through its Backward Integration Programme (BIP).

Chairman of Dangote Sugar Refinery Plc, Aliko Dangote stated this at the company’s 18th Annual General Meeting (AGM) held yesterday in Lagos, just as the Nigerian Exchange released the company’s first-quarter result for 2024, indicating an increase of 20.1 per cent in its revenue to N122.7 billion.

Dangote, at the AGM, said in alignment with the Federal Government of Nigeria’s policy guidelines, DSR continues to focus on and enhance its Backward Integration Project (BIP) by deploying and reviewing project strategies to ensure efficient delivery.

He noted that the 700,000 metric tonnes would meet 50 per cent of the current market demand for refined sugar. According to him, the 10-year sugar development plan to produce 1.5 million MT of sugar per annum from locally grown sugarcane remains a germane roadmap to the attainment of the Company’s objectives.

“Our focus is on achieving the revised targets set for DSR Numan Operations, Dangote Adamawa Sugar Limited, and Nasarawa Sugar Company Limited, while we are hopeful that the Taraba State Government will resolve the community payment issues that have led to the stoppage of activities at the Dangote Taraba Sugar Limited, Lau/Tau project.”

He added that “…During the year under review, despite the challenges we were faced with, the company significantly scaled up investment in the Backward Integration Projects with the ongoing expansion of the DSR Numan factory refining capacity from 3,000TCD to 9,800TCD year-end.

“The factory will be increased with an additional 5,200TCD to 15,000 TCD (tonnes of cane crushed per day) eventually to meet the need in view of the massive land development activities also going on at the site. The aim is to achieve 24,200 hectares in total by the year 2029.”

He also emphasised that despite the adverse impact on the business environment by the continuous increase in the inflationary trend, lack of liquidity and FX to fund the company’s equipment import among others for the backward integration projects, concerted efforts are ongoing to secure the needed funds for the development of the Nasarawa Sugar Company Limited project at Tunga in Awe Local Government Area of the state.

“This will enable the company to put in place the needed infrastructure for the eventual commencement of full-scale production and ensure that the Dangote Sugar Backward Integration ‘Sugar for Nigeria Project’ is achieved. In the end, over $700 million investment would be committed to the Backward Integration Programme,” he added.

Dangote said that the Dangote Sugar (Ghana) Limited, was established as a subsidiary of the Company during the year under review, in line with the plan to expand its presence in the sugar industry across Africa.

On outlook, he stated that “achievement of the goals of the Sugar Backward Integration Master Plan remains our focus. This will go a long way in delivering the anticipated benefits, especially in FX savings and cushioning its impact on our operations amongst other benefits to the company, all stakeholders, and the nation.”

Group Managing Director/CEO of Dangote Sugar, Ravindra Singhvi said, “Despite these challenges, we are resolute and focused on the delivery of our business targets in the medium to long term.”

He pointed out that “as we continue to navigate through the scarcity and high cost of foreign exchange, escalating costs of raw materials amongst others, our focus is to enhance the effectiveness of our supply chain processes, optimise cost, improve our operational efficiencies and delivery on our Sugar for Nigeria backward integration project.”

He said “the target is to produce a minimum of 1.5MT refined sugar annually from locally produced sugarcane at our integrated sugar production estates, which is expected to alleviate some pressure on costs and our demand for foreign currency.

“Achievement of a sustainable business remains one of our key strategies and concerted efforts were made towards sustaining the achievements we have recorded in the past,” Singhvi added.

*The Arena: Adron Homes To Host Business Warfare Challenge*

Adron Homes’ renowned Business Warfare Challenge, THE ARENA, is set to commence once again, heralding an exciting period of strategic competition and professional growth within the company.

Designed as an innovative Business Series, THE ARENA serves as a platform to cultivate and enhance the business acumen of Adron Homes’ esteemed staff, ultimately driving improved performance across the organization. This prestigious event brings together top managers from Adron Homes’ nationwide offices, creating a dynamic battleground where strategic minds collide in pursuit of golden prizes and lifetime rewards.

At the heart of THE ARENA are the Lions and the Lord Lion, distinguished judges tasked with evaluating the business strategies presented by competing teams. These strategies, if deemed viable, stand to be fully funded, amplifying the stakes and motivating participants to unleash their creativity and ingenuity.

Reflecting on past editions, where monthly winners emerged from various branches nationwide, it’s evident that THE ARENA is not merely a competition but a celebration of excellence and innovation. The allure of bumper gifts, including all-expense-paid trips to exotic destinations like Singapore, serves as a testament to Adron Homes’ commitment to rewarding outstanding performance and fostering a culture of achievement.

As anticipation mounts for this year’s series of THE ARENA, excitement reverberates among Adron Homes’ dedicated staff, eager to showcase their talents and compete on a national stage. With the competition now set to unfold quarterly, the stakes are higher than ever, promising a heightened level of engagement and enthusiasm among participants.

Moreover, the rewards for success in THE ARENA are nothing short of extraordinary. From luxurious weekend getaways at five-star resorts within Nigeria to coveted all-expense-paid trips to the iconic city of Paris, accompanied by generous shopping allowances, Adron Homes spares no expense in recognizing and rewarding the achievements of its top performers.

Initiatives like THE ARENA underscore Adron Homes’ commitment to nurturing talent, fostering innovation, and creating a workplace culture

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*Scarcity: Normalcy returns as fuel stations get supply of petroleum products*

Queues have begun to vanish from filling stations across Nigeria’s major cities after the Nigerian National Petroleum Company Ltd intervened in the logistic issues that had breached the supply of premium motor spirit (PMS).

Findings by this newspaper across filling stations in Abuja showed that queues are disappearing and normalcy has returned.

Queues have disappeared from most filling stations across major locations like Kubwa, Central Area, Wuse, Maitama, and Gwarimpa.

Speaking on the development, a top official said, “The fuel stations round shows that the situation is calm. All stations have products and are selling.”

Recall that this newspaper had reported that the Independent Petroleum Marketers Association of Nigeria (IPMAN) on Tuesday warned against panic buying, adding that normalcy would return.

The National Secretary of IPMAN, James Tor, said, “If there is no product, then we can not give out anything. But happily, now, there are products, and the federal government is doing much. yesterday, our national president was explaining to us that the NNPCL has opened up some of their depots so that we can have products supplied and distributed to the public.

“The president (IPMAN) even called me this morning (April 30, 2024) about the increase in the supply. So, what we are witnessing is just a bridge of what is going on and what is going on.

“But happily enough, I want to announce to the public that there shouldn’t be any panic buying, because when this thing happens, and people start rushing here and there and trying to accumulate the products, that effect will go a long way to affect everybody.

He explained that Nigeria exists in a global system that is influenced by the crisis in the Middle East between the Israelis and Iran.

“All these things if we put them together (impacts the Nigerian market),” Tor said, adding “any slightest thing that happens in the world, will affect the supply and distribution of petroleum products”

However, he expressed confidence in the role of the NNPCL in playing in ensuring energy security for Nigerians.

Tor said, “Good enough, an NNPC is ready and has opened up some of the depots so that they will start bringing in our product for distribution. I want to assure you that in any moment from now, you will see that the queues will be going down because they have intensified the supply.

“With what the NNPC is doing, very in a little, few days, you will start seeing the impact of what they are doing because IPMAN is involved.”