Today: 03 Sep 2010

 

 


Dangote Sugar Refinery Plc (“DSR Plc”) is in the core business of sugar refining, with a consumer market share of about 80% in the Nigerian sugar market. 

The company imports raw sugar from Brazil, refines it into Vitamin A-fortified white sugar and sells the finished product in 50kg bags under the brand name “Dangote Sugar” across Nigeria. DSR Plc sells unfortified sugar to large industrial users, mainly pharmaceutical, food and beverage manufacturers, while the Vitamin A-fortified sugar reaches households through distributors who sell retail to small wholesalers, confectioners and other smaller value-adding enterprises.

Although no formal exportation was done initially, the DSR Plc's products find their way into neighbouring West African countries through informal cross-border trading. Recently, DSR Plc formally entered the West Coast market, with the successful export of 1500 MT sugar to Ghana, in December 2007.

DSR Plc is exploring the possibility of exporting white sugar to other West African countries to maximise the current advantages of low regional consumption per capita through regional economic growth and incentives offered by the ECOWAS free trade zone.

 

All the white sugar produced by DSR Plc is sold in Nigeria. Although the DSR Plc does not formally export, its products find their way into neighbouring West African countries through informal cross-border trading. DSR Plc’s parent company, DIL, has been in the sugar business since 1978 and engaged in the importation of white sugar before commencing sugar refining in 2001. DIL and DSR Plc have developed a deep understanding of the Nigerian sugar market, based on the experience gained from over 28 years of selling white sugar in Nigeria. The refined white sugar is sold in 50kg bags to a variety of customers which can be grouped as follows:

Large industrial users - these are leading blue chip companies in Nigeria, and include Nestle Nigeria Plc, Cadbury Nigeria Plc, Seven-Up Bottling Company Plc and Nigerian Bottling Company Plc. This group typically accounts for 18% of the DSR Plc’s sales.

Distributors - This group buys white sugar wholesale from DSR Plc for retail to households and small industrial users. Distributors account for about 82% of the Company’s sales.