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 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 122.7 billion naira.
Dangote at the AGM, said in alignment with the Federal Government of Nigeria’s policy guidelines, Dangote Sugar Refinery continues to focus and enhance its Backward Integration Projects 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 Dangote Sugar Refinery Numan Operations, Dangote Adamawa Sugar Limited and Nasarawa Sugar Company Limited, while we are hopeful that the Taraba State Government resolve the community payment issues that have led to the stoppage of activities at the Dangote Taraba Sugar Limited, Lau/ Tau projects.
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 Dangote Sugar Refinery Numan factory refinery capacity from 3,000 TCD to 9,800 TCD year – end.
“The factory will be increased with additional 5,200 TCD 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 advance impact on the business environment by continuous increase in the inflationary trend, lack of liquidity and forex to fund the Company’s equipment import among others for backward integration projects, concerted efforts are ongoing to secure the needed funds for the development of 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 For Nigeria Project is achieved in the end, over 700 million dollars 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 forex savings and cushioning its impact on our operations amongst other benefits to the company, all stakeholders, and the nations”
Group Managing Director/CEO of Dangote Sugar, Ravindra Singhvi said, “Despite these challenges, we are resolve 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 sourcing and and high cost of foreign exchange, escalating costs of new materials amongst others, our focus is to enhance the effectiveness, optimise cost, improve our operational efficiencies and delivery on Sugar for Nigeria backward integration projects.
He said “the target is to produce a minimum of 1.5 MT 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 the key strategies and concerted efforts were made towards sustaining the achievements we have recorded in the past,” Singhvi added.
