NIGERIA – Chanrai Group of Companies has offloaded a controlling stake in its Nigerian subsidiary, Africa FMCG Distribution Ltd (AFMCG), to Imperial – South Africa headquartered logistics company owned by DP World.
AFMCG is a multi-faceted business focused on importation, manufacturing and distribution of products covering branded Food, Fast Moving Consumer Goods, and Appliances for leading multi-nationals across the globe.
Leveraging its business legacy built through the Chanrai Group of Companies for over 130 years, AFMCG has developed longstanding relationships with multinational FMCG companies, established itself as a leading player in the Nigerian consumer market, and demonstrated good corporate citizenship through its broad-based social impact initiatives.
Subodh Chanrai, Chairman of AFMCG, said, “This strategic transaction further enhances our foothold in this significant market and allows us to offer further benefit to our principals and keep pace with the evolving needs of the African consumer.”
Acquisition of the stake was undertaken through Imperial’s Market Access business and is in line with the parent company’s ambition of becoming the leading market access and logistics partner in Africa by connecting trade flows into and out of the region.
Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, said, “AFMCG boasts unmatched route-to-market solutions in Nigeria and also offers strategic value to DP World from a supply chain and fintech perspective, in line with our strategic objective of leveraging assets and logistics to create an integrated global supply chain – from factory floor to customer door.”
Representing some of the world’s leading multi-national FMCG companies and their brands, AFMCG has a wide-ranging product portfolio and is managed by an experienced, efficient and highly professional team, supported by robust technology and infrastructure.
The business offers a nationwide and best-in-class route-to-market solution across multiple channels in Nigeria.
Its services also extend to co-manufacturing, co-packing, sourcing and value-added services in the fast-moving consumer goods (FMCG) sector.
Recently, AFMCG acquired Suntory Beverage & Food Nigeria (SBFN), maker of Ribena and Lucozade for a total consideration of US$14 million.
In addition, AFMCG entered into a license agreement with Suntory Beverage & Food Limited Asia Pte for the exclusive right to manufacture and distribute SBF brands, Lucozade and Ribena, in Nigeria.
“Being one of the largest economies on the African continent, with attractive demographic and macroeconomic fundamentals, Nigeria boasts a significant consumer market and AFMCG presents an ideal opportunity with the necessary scale for us to leverage to sell truly pan-African solutions to our principals and clients,” said Mohammed Akoojee, Chief Operating Officer of DP World Logistics and Group CEO at Imperial.
Imperial has invested in the Nigerian FMCG market at a critical time when high inflationary pressure across the country has triggered rise in cost of raw materials for consumer goods.
To this end companies have been forced to remodel their operations to cater for different segments of the market in a bid to maintain market share and keep revenues high.